GNC

GNC Holdings Inc.

Consumer


Presented:06/06/2013
Price:$43.85
Cap:$4.31B
Current Price:$0.06
Cap:$0.01B

Presented

Date06/06/2013
Price$43.85
Market Cap$4.31B
Ent Value$5.23B
P/E Ratio17.17x
Book Value$8.56
Div Yield1.5%
Shares O/S98.32M
Ave Daily Vol1,730,000
Short Int10.98%

Current

Price$0.06
Market Cap$0.01B
GNC Holdings, Inc. operates as a specialty retailer of health and wellness products. It operates through three segments: Retail, Franchise, and Manufacturing/Wholesale. The company’s products include vitamins, minerals, and herbal supplement products, as well as sports nutrition products, diet products, and other wellness products. It also manufactures its branded products for various third parties. The company sells its products under GNC proprietary brands, including Mega Men, Ultra Mega, Total Lean, Pro Performance, and Pro Performance AMP, as well as under third-party brands. As of December 31, 2012, it had approximately 8,100 locations, including 6,100 retail locations in the United States; and franchise operations in 54 countries. The company sells its products through company-owned domestic retail stores, domestic and international franchise activities, third-party contract manufacturing, e-commerce, and corporate partnerships. It also offers its products at GNC.com, LuckyVitamin.com, and drugstore.com. GNC Holdings, Inc. was founded in 1935 and is headquartered in Pittsburgh, Pennsylvania.

Highlights

The presenter believes GNC is a classic GARP (growth at a reasonable price) story at present levels. The company’s CEO has been under scrutiny for selling shares, but GNC’s financial performance (10% top line growth and 18%-20% bottom line growth) is of greater importance to the investment analysis, and his model suggests the potential benefits from the company’s recently launched, revised Gold Card program could propel earnings to $3.75 per-share in 2014 (vs. the Street’s ~$3.35 estimate).

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Idea Discussion

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