Shares in GNC Holdings Inc (NYSE:GNC) got a pick-me-up in early trading after the US distributor of vitamins and nutritional supplements posted stronger-than-expected quarterly results, helped by booming e-commerce business in China.
For the second quarter, GNC reported net income of US$13.3mln, or earnings per share of US$0.16, compared with US$16.6mln, or US$0.24 in the year-ago quarter. On an adjusted basis, its earnings per share jumped to US$0.20, which zipped past Wall Street’s estimate of US$0.15 per share.
“During the second quarter of 2018, although we experienced some softness in our US brick and mortar business, we delivered meaningful growth in our e-commerce and international business consistent with our long-term growth initiatives,” said CEO Ken Martindale.
GNC’s revenue fell from the previous year, meanwhile, to US$617.9mln, down from US$650.2mln in the year-ago quarter. But it managed to beat analysts’ consensus estimate of US$607.7mln.
The sunny spot in the quarter came from revenues from GNC’s international unit, which jumped 11% to US$48.6mln, thanks primarily to an increase in China’s e-commerce sales.
GNC shares jumped 13.2% to US$3.66 in trading after the opening bell.
GNC Holdings is a retailer of vitamins, minerals and herbal supplement products.