GNC Holdings took a hit in the first quarter of 2015, as revenues fell below the same period a year earlier in what CEO Mike Archbold described as “largely self-inflicted wounds,” citing the company’s reduced engagement with customers as it dialed back on promotions and reassessed its marketing strategy.
“To be clear, this was our mistake,” Archbold said in a media briefing Thursday.
Pittsburgh-based GNC reported $670.2 million in consolidated revenue for the three months, down from $674.5 million in 2014, with the health-and-wellness retailer’s manufacturing/wholesale segment seeing a 10.4 percent decrease in revenue. In addition, same-store sales dropped 4.1 percent in domestic company-owned stores, while franchise stores saw a 1.5 percent decrease.
“While we are disappointed in the decline of our domestic same-store sales, we have identified appropriate sales recapture initiatives to address and reverse this trend,” Archbold said in a release.
The company, which reached an agreement with New York officials in March to implement additional testing of its supplements that will exceed FDA requirements, has widened its earnings-per-share outlook for 2015 from $3.10-$3.15 to $3.00-$3.15.