Vitamin Shoppe Earnings: Fifth Straight Quarter of Double-Digit Growth

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Vitamin Shoppe Inc. (NYSE:VSI) reported net income above Wall Street’s expectations for the second 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 Inc. Earnings Cheat Sheet

Results: Net income for Vitamin Shoppe Inc. rose to $16.6 million (55 cents per share) vs. $12 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 38.8% from the year-earlier quarter.

Revenue: Rose 13.4% to $245 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vitamin Shoppe Inc. beat the mean analyst estimate of 51 cents per share. Analysts were expecting revenue of $241.8 million.

Quoting Management: Tony Truesdale, Chief Executive Officer of the Company commented, “I am very pleased with our strong second quarter results. Our top line growth was driven by continued strong retail performance with positive comparable store sales and solid e-commerce sales. The strength of our sales performance is supported by disciplined merchandising, knowledgeable Health Enthusiasts and superior execution.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 14.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 19.2% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding, as the company’s gross margin expanded 0.9 percentage point from the year-earlier quarter to 35%. Over that span, margins have grown, on average, one percentage point per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 57.6% and in the fourth quarter of the last fiscal year, the figure rose 57.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 6 cents in the fourth quarter of the last fiscal year, and by 7 cents in the third quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the third quarter is 44 cents per share, up from 43 cents ninety days ago. The average estimate for the fiscal year is $1.95 per share, a rise from $1.86 ninety days ago.

Competitors to Watch: Vitacost.com, Inc., GNC Acquisition Hldgs. Inc, drugstore.com, inc., China Nepstar Chain Drugstore Ltd., Graymark Healthcare Inc, Rite Aid Corporation, PetMed Express, Inc., Sally Beauty Hldgs., Inc., Walgreen Company, and Perfumania Holdings, Inc.

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

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