Vitamin Shoppe Inc. Earnings: Beats Estimates

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Vitamin Shoppe Inc. (NYSE:VSI) reported net income above Wall Street’s expectations for the fourth quarter. Vitamin Shoppe is a retailer and direct marketer of vitamins, minerals, herbs, supplements, sports nutrition and other health and wellness products.

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Vitamin Shoppe Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the specialty retail company rose to $9.4 million (32 cents per share) vs. $6 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 57.9% from the year-earlier quarter.

Revenue: Rose 19.2% to $214.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vitamin Shoppe Inc. reported adjusted net income of 38 cents per share. By that measure, the company beat the mean estimate of 32 cents per share. Analysts were expecting revenue of $212.7 million.

Quoting Management: Commenting on the results, Tony Truesdale, Chief Executive Officer of the Company stated, “Again we are pleased with the consistent results we achieved this quarter. We delivered our 25th consecutive quarter of positive comparable sales growth. Revenue was robust, merchandise margins strong, operating margins expanded and earnings per share grew at a healthy double-digit pace. Our in-store experience and our website are all resonating with our customers.” Added, Mr. Truesdale, “I want to thank all the Vitamin Shoppe team members for their contributions. It is due to all their hard work that we were able to successfully execute our strategic initiatives and deliver another quarter and year of outstanding financial results.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.4%, with the biggest boost coming in the most recent quarter when revenue rose 19.2% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 1.6 percentage points from the year-earlier quarter to 34.7%. During this time, margins have grown an average of one percentage points per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose 64.3% and in the second quarter, the figure rose 63.5%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 7 cents in the third quarter, by 2 cents in the second quarter, and by 9 cents in the first quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 56 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $1.60 per to share to $1.61.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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