GNC leadership remains resolute that consistent pricing and improved customer service can turn the supplement chain around.

Christine Kapperman, Senior Content Director

February 16, 2017

1 Min Read
GNC losses mount in fourth quarter

GNC’s fourth quarter performed well below expectations but is not an indication of where GNC is heading, Chief Financial Officer Trish Tolivar told investors during a Feb. 16 earnings call.

The $433.4 million net loss in the quarter is an indication that GNC has "lost touch with its customers," interim CEO Bob Moran said.

The supplement retailer is counting on its "One New GNC" transformation, the latest reinvention iteration on which GNC has embarked. The $10 million effort officially launched in late December after companywide store closures to set the new scene for simplified, more competitive pricing, new loyalty programs and improved customer service. Rollout investment will continue as the program ramps up.

So far, transactions are up 7 percent—the first positive transaction growth GNC has seen in years, Tolivar said. Yet total ticket remains down, at an unreported rate.

Meanwhile, store expansion strategy will slow and 100 stores will close, Tolivar said as she noted the strategy mirrors reports from other retailers.

Performance highlights include:

  • The company reported a net loss of $433.4 million.

  • Same-store sales decreased 12 percent in domestic company-owned stores (including GNC.com sales, which contributed 4.5 percent of the decrease) in the fourth quarter of 2016. Franchise location same-store sales fell 6 percent.

  • Diluted loss per share was $6.35. Adjusted diluted EPS was 7 cents.

Moran will remain in his interim role for six more month as the board continues the CEO search.

About the Author(s)

Christine Kapperman

Senior Content Director, New Hope Network

As the senior content director at New Hope Network, Christine Kapperman combines her 20-year journalism background with her passion for business to cover the natural products industry for newhope.com and Natural Foods Merchandiser magazine. She also led content at worldteanews.com. She loves tracking (and tasting) trends as she shares what’s next to show up in cups, plates and in pantries across the United States.

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