GNC Holdings beats by $0.01, reports revs in-line; announced interim CEO; suspended guidance :
- Reports Q2 (Jun) earnings of $0.79 per share, $0.01 better than the Capital IQ Consensus of $0.78; revenues fell 2.4% year/year to $673.2 mln vs the $669.43 mln Capital IQ Consensus.
- Same store sales decreased 3.7% in domestic company-owned stores (including GNC.com sales) in the second quarter of 2016. In domestic franchise locations, same store sales decreased 6.6% in the second quarter of 2016.
- The Company also announced the appointment of Robert F. Moran as Interim Chief Executive Officer. Mr. Moran replaces Mike Archbold who is leaving the Company. Mr. Moran commented, "Our results for the quarter were disappointing and we are focused on addressing those areas where we can drive a meaningful impact on the business in the shortest period of time. We clearly have work to do to reverse the current trends, but I am confident in our business and the GNC brand and I am committed to working closely with our talented team to deliver improved performance. As we do so, we will continue the previously announced comprehensive review of strategic and financial alternatives."
- As the Company conducts its evaluation of the business under new leadership and develops an appropriate course of action to deliver improved results, it has suspended its previous earnings guidance for fiscal 2016.
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