Vitamin Shoppe Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

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

Results: Net income for Vitamin Shoppe, Inc. rose to $12 million (40 cents per share) vs. $7.3 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 63.5% from the year earlier quarter.

Revenue: Rose 12.3% to $215.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VSI beat the mean analyst estimate of 38 cents per share. It beat the average revenue estimate of $211.4 million.

Quoting Management: “We feel good about the momentum we are seeing in the business,” Chief Executive Officer Tony Truesdale said. “We are making investments in the business, particularly online, to support our growth. Both in retail and online we continue to work to build a business that exceeds our customers’ expectations and strengthens our brand – our most valuable asset. We have a strong balance sheet that can support our growth.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 12%, with the biggest boost coming in the first quarter when revenue rose 13.2% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded one percentage points to 34.1% from the year earlier quarter. Over that span, margins have grown on average one percentage points 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 32.8% and in the fourth quarter of the last fiscal year, the figure rose more than threefold.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 49 cents versus a mean estimate of net income of 40 cents per share.

Competitors to Watch: Vitacost.com, Inc. (NASDAQ:VITC), CVS (NYSE:CVS), drugstore.com, inc. (NASDAQ:DSCM), China Nepstar Chain Drugstore Ltd. (NYSE:NPD), Graymark Healthcare Inc (NASDAQ:GRMH), Rite Aid Corporation (NYSE:RAD), PetMed Express, Inc. (NASDAQ:PETS), Sally Beauty Hldgs., Inc. (NYSE:SBH), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Walgreen Company (NYSE:WAG), and Perfumania Holdings, Inc. (NASDAQ:PERF).

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(Source: Xignite Financials)