Health and wellness retailer GNC (NYSE: GNC) saw its share price take ill after announcing weaker than expected quarterly results thanks to bad weather in January and February and strong promotional activity during the holiday season.
Although the retailer reported strong earnings and revenue, it fell short of expectations and the retailer was soundly punished. GNC's share fell close to 15 percent following the close of the market.
For the fourth quarter of 2013, the company reported consolidated revenue of $613.7 million, an increase of 8.6 percent over the fourth quarter of 2012. Revenue increased in each of the company's segments: retail by 7.8 percent, franchise by 9.4 percent and manufacturing/wholesale by 13.3 percent.
Same store sales increased 5.0 percent in domestic company-owned stores in the fourth quarter of 2013 representing the company's 34th consecutive quarter of positive same store sales growth. In domestic franchise locations, same store sales increased 3.3%.
For full year 2013, GNC reported consolidated revenue of $2.6 billion, an increase of 8.2 percent over 2012.
GNC also has plans to enter Russia and has reached a master franchise agreement with Rusvit for its market entry into the country. Rusvit - headquartered in Moscow - is led by founder and Chairman Alex Kovaler, who has built other consumer businesses in Russia, including Wendy's, Nathan's and RC Cola. Beginning in 2014, a GNC presence will be established initially in Moscow with stores, kiosks and store-within-a-store locations with premier retailers.
-See this press release
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