Health supplements retailer GNC Holdings Inc. (GNC) Tuesday reported a slight drop in net earnings as well as revenues for the second quarter, as declines in franchise and manufacturing businesses offset increases in retail revenues. In addition, both earnings and revenues missed analysts' estimates. The company also lowered its annual outlook.
For the June quarter, net earnings declined to $69.89 million from $71.69 million a year earlier. Per-share earnings, however, increased to $0.77 from $0.73 last year, as weighted average common shares outstanding declined to 90.9 million from 98.3 million a year ago.
On average, fifteen analysts polled by Thomson-Reuters estimated the company's earnings to be $0.79 for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly revenues decreased slightly to $675.2 million, from $676.3 million last year, below the $705.01 million Wall Street expected.
Same-store sales, in domestic company-owned stores and website on a product only basis, decreased by 4 percent.
Looking ahead, the company slashed its annual earnings outlook to $2.85 per share, from the range $3.05 to $3.10 per share previously projected. The company also said it now expects revenues to be nearly flat, compared with a earlier projection for a single-digit increase.
Analysts expect earnings of $3.03 per share on revenues of $2.75 billion.
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