Pittsburgh, PA — GNC’s fourth quarter results show that the company is performing well below expectations. Regardless of the losses GNC took in the fourth quarter, the leadership of GNC believes that its enhanced customer service model as well as its consistent pricing system will assist in improving the financial performance of the chain.
Trish Tolivar, the chief financial officer, does not believe that the performance shown in the fourth quarter is indicative of where the company is heading while the company’s interim CEO, Bob Moran, believes the $433.4 million net loss in the fourth quarter is due to GNC losing touch with the customers.
In late December the company invested $10 million to launch its new “One New GNC” initiative, in an effort to regain customers while using revenue towards competitive pricing, loyalty programs, and improved customer service
According to Tolivar, the implementation of “One New GNC”, has contributed to a seven percent increase in transactions, which is the first growth GNC has seen in years.
In addition to the net loss of over $400 million, same stores sales decreased 12 percent in domestic company owned stores while franchise stores decreased six percent. The diluted loss per share was $6.35.
Moran will continue to perform in the interim CEO role for an additional six months. In the meantime, one hundred stores will close and store expansion will slow while GNC growth efforts are in place. The transformation has been active since late December of last year.