NEW YORK (TheStreet) -- Shares of GNC Holdings Inc. (GNC - Get Report) have dropped -10.42% to $39.10 in after-market trade as the specialty retailer of health and wellness products reported its financial results for the 2014 first quarter.
The company reported consolidated revenue of $677.3 million, an increase of 1.9% over consolidated revenue of $664.7 million for the first quarter of 2013.
Revenue increased in the company's retail segment by 3.1%. Revenue decreased in the company's franchise and manufacturing segments, by -1.4% and -2.2% respectively.
- The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Specialty Retail industry and the overall market, GNC HOLDINGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- GNC HOLDINGS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GNC HOLDINGS INC increased its bottom line by earning $2.72 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($3.23 versus $2.72).
- The net income growth from the same quarter one year ago has exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 0.5% when compared to the same quarter one year prior, going from $47.44 million to $47.66 million.
- 39.27% is the gross profit margin for GNC HOLDINGS INC which we consider to be strong. Regardless of GNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GNC's net profit margin of 7.76% compares favorably to the industry average.
- You can view the full analysis from the report here: GNC Ratings Report