Why GNC Holdings (GNC) Stock Plunged In After-Market Trade

NEW YORK (TheStreet) -- Shares of GNC Holdings Inc.  (GNC) 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.

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Same store sales dropped -0.7% in domestic company-owned stores (including GNC.com sales) in the quarter.

As previously disclosed, results were negatively impacted by severe weather patterns in January and February. The company generated positive same store sales (including GNC.com sales) in March.

In domestic franchise locations, same store sales decreased -3.2% in the quarter.

GNC reported net income of $69.9 million, compared to $72.6 million for the first quarter of 2013. Diluted earnings per share were 75 cents for the first quarter of 2014, a 2.7% increase over diluted earnings per share of 73 cents for the first quarter of 2013.

TheStreet Ratings team rates GNC HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GNC HOLDINGS INC (GNC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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