Vitamin Shoppe, Inc., a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal second quarter ended June 30, 2012. Net sales in fiscal second quarter 2012 advanced 13.4 percent while operating income rose 35.9 percent. During the period, the company reported fully diluted earnings per share (EPS) of $0.55; up from $0.40 in fiscal second quarter 2011.
Tony Truesdale, Chief Executive Officer of the Company commented, "I am very pleased with our strong second quarter results. Our top line growth was driven by continued strong retail performance with positive comparable store sales and solid e-commerce sales. The strength of our sales performance is supported by disciplined merchandising, knowledgeable Health Enthusiasts and superior execution."
Mr. Truesdale further commented, "Looking ahead, we have many opportunities to continue to fuel our long-term growth. These include; expanding our store base, introducing new products, international expansion and continuing to grow e-commerce. We also have the operational and financial discipline to continue to manage our business to ensure we deliver profitable growth."
Fiscal Second Quarter 2012 Results
Net sales increased $29.0 million, or 13.4 percent, to $245.0 million for the three months ended June 30, 2012, compared with $215.9 million for the three months ended June 25, 2011. This increase was the result of; 1) an 8.3 percent increase in comparable store sales, 2) growth from new stores, and 3) a 20.3 percent increase in e-commerce sales.
Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $17.0 million, or 11.9 percent, to $159.2 million for the three months ended June 30, 2012, compared with $142.2 million for the three months ended June 25, 2011.
Gross profit increased $12.0 million, or 16.3 percent, to $85.8 million for the fiscal 2012 second quarter, compared with $73.7 million for fiscal second quarter 2011. Gross profit as a percentage of net sales was 35.0 percent for the quarter ended June 30, 2012, up from 34.1 percent in fiscal second quarter 2011. The improvement in gross profit margin reflects leverage on occupancy and supply chain costs.
Selling, general and administrative expenses (SG&A), including operating payroll and related benefits, advertising and promotion expense, depreciation and amortization, and other SG&A, increased $4.7 million, or 8.9 percent, to $58.1 million for the quarter ended June 30, 2012, compared with $53.3 million for the quarter ended June 25, 2011. SG&A as a percentage of net sales was 23.7 percent for the quarter ended June 30, 2012, compared to 24.7 percent in fiscal second quarter 2011.
Income from operations increased $7.3 million, or 35.9 percent, to $27.7 million for the three months ended June 30, 2012, compared with $20.4 million for the three months ended June 25, 2011. As a percentage of revenue, income from operations was 11.3 percent for the fiscal 2012 second quarter, compared with 9.4 percent for fiscal second quarter 2011.
Net income increased $4.6 million or 38.8 percent, to $16.6 million for the three months ended June 30, 2012, compared with $12.0 million for fiscal second quarter 2011. This was primarily attributable to stronger sales and margin improvement.
Earnings per diluted share increased 37.5 percent to $0.55 in fiscal second quarter 2012 from $0.40 in second quarter 2011.
Balance Sheet and Cash Flow
Cash and equivalents at June 30, 2012 were $50.4 million. Capital expenditures were $5.0 million in the quarter. Capital expenditures were used primarily for the build-out of new stores and improvements to existing stores, as well as computer equipment related to those stores.
- For the current year management expects:
- To open 52 new stores
- Comparable store sales growth in mid-single digits for the remainder of the year
- Continued improvement in operating income margin
- Capital expenditures between $35 million and $40 million