Vitamin Shoppe Earnings: Margins Expand, Stock Climbs

Vitamin Shoppe Inc. (NYSE:VSI) reported net income above Wall Street’s expectations for the first quarter. Vitamin Shoppe 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 First Quarter

Results: Net income for Vitamin Shoppe Inc. rose to $18.3 million (61 cents per share) vs. $11.6 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 57.6% from the year-earlier quarter.

Revenue: Rose 14.4% to $248.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vitamin Shoppe Inc. beat the mean analyst estimate of 57 cents per share. It beat the average revenue estimate of $239.7 million.

Quoting Management: Tony Truesdale, Chief Executive Officer of the Company commented, “I am very pleased with our first quarter financial performance which exceeded our expectations on both top line sales and bottom line profitability. Demand for our products remains healthy both in our stores and online.” Added, Mr. Truesdale, “Our strong financial results reflect the successful execution of our strategies and our disciplined approach to growing our business. In delivering another quarter of solid performance we have again demonstrated the consistency of our business model.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 19.2% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 0.9 percentage point from the year-earlier quarter to 35.6%. Over that span, margins have grown, on average, one percentage point per quarter on a year-over-year basis.

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 57.9% and in the third quarter of the last fiscal year, the figure rose 64.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the fourth quarter of the last fiscal year, by 7 cents in the third quarter of the last fiscal year, and by 2 cents in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 48 cents a share to 49 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $1.82 per to share to $1.86.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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