Pittsburgh, PA—First-quarter sales for GNC Holdings Inc. better than expected. Revenues were $624.3 million, which was 23% higher than they were last year at this time.
These increases were seen in all areas, from retail (22% growth) to franchise sales (up 31%) to manufacturing and wholesale (18% higher). The chain also experienced some physical growth with the opening of 35 new domestic company-owned stores, 34 international franchise locations, 21 store-within-a-store Rite Aid locations and four domestic franchise locations. Two company-owned stores closed in Canada.
The price of GNC shares fell, however, at the start of the second quarter when the U.S. Food and Drug Administration sent warning letters to 10 manufacturers of sports supplements that use 1,3-dimethylamylamine (DMAA). GNC stocks fell 6.5% to 38.33 on April 30, while competitor The Vitamin Shoppe saw prices fall 3.5% to 47.21.
Published in June 2012, online 4/2012