Pittsburgh, PA—GNC has reported its fourth quarter and full year 2019 results, according to a press release.
GNC reported consolidated revenue of $470.4 million in Q4, compared with $547.9 million in Q4 2018; the decrease in revenue, the press release says, is primarily a result of the transfer of the Nutra manufacturing and China businesses to joint ventures formed in Q1 2019, the closure of company-owned stores under the company’s ongoing store portfolio optimization strategy, and a U.S. company-owned same store sales decrease of 2.4%.
- Net loss of $33.5 million for Q4 2019, compared with net income of $58.8 million for Q4 2018; adjusted net loss of $0.4 million, compared with adjusted net loss of $10.0 million in Q4 2018.
- E-commerce revenues grew around 15% compared with Q4 2018, thanks in part to an improved website.
- U.S. and Canada segment achieved year-over-year operating income growth for 2019.
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Having reported previously that the company does not expect to be able to generate enough revenue to meet payment demands for two impending debt obligations, GNC notes in their release that the company is evaluating all strategic alternatives to address these upcoming maturities, including refinancing options in the U.S. and Asia. The release notes that progress on refinancing, however, is slowing, due to COVID-19.
Ken Martindale, CEO, said in the release: “Certainly, COVID-19 has created a difficult business environment, and slowed the process of refinancing our debt. As we work through these issues we remain highly focused on the health and safety of GNC associates and customers, which includes meeting the growing demand for our immunity and wellness products.”