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GNC stock tumbles after it posts wider-than-expected 4Q loss on weak same-store sales

The vitamin retail chain also revealed it will receive about $176 million in a partnership with International Vitamin Corp
A GNC Holdings storefront
GNC Holdings is a leading specialty health, wellness and sports nutrition products retailer

GNC Holdings Inc (NYSE:GNC) stock tumbled Tuesday after it reported a wider-than-expected fourth-quarter loss on weak same-store sales.

For the quarter ended December 2018, the Pittsburgh, Pennsylvania-based vitamin retail chain posted a loss of $0.13 per share on revenue of $547.9 million. The consensus earnings estimate was $0.02 per share on revenue of $554.2 million.

GNC stock recently fell 13.5% to $2.8.

READ: Genco shares pop after drybulk shipping specialist sails past Street's 4Q estimates

Separately, the company said it will receive about $176 million in a partnership with International Vitamin Corp. As part of the deal, GNC has agreed to integrate its manufacturing division with IVC through a joint venture.

GNC will receive $101 million in exchange for the net assets of the Nutra manufacturing plant and the Anderson facility and will retain an initial 43% in the venture. Over the next four years, GNC will receive an additional $75 million as IVC's ownership of the joint venture increases to 100% and Nutra Manufacturing LLC becomes wholly owned by IVC.

"This partnership with IVC will provide us a level of efficiency we could not have achieved on our own while allowing our team to continue focusing on delivering high quality, innovative products to our customers," said GNC Holdings CEO Ken Martindale in a statement.

GNC is a specialty retailer of health and wellness products, including vitamins, minerals, herbal supplements, sports nutrition and diet products.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

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