Vitamin Shoppe Inc. Earnings Cheat Sheet: Tops Analysts’ Expectations

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

Results: Net income for Vitamin Shoppe Inc. rose to $11.9 million (40 cents per share) vs. $7.2 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 64.3% from the year earlier quarter.

Revenue: Rose 11.5% to $208.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VSI beat the mean analyst estimate of 33 cents per share. Analysts were expecting revenue of $208.1 million.

Quoting Management: Tony Truesdale, Chief Executive Officer of the Company stated, “Our results once again demonstrate the unique strength of our retail store portfolio, our evolving multichannel growth model and The Vitamin Shoppe brand. We realized improved gross profit margins, leveraged our fixed operating expenses and continued to make investments for the future while achieving significant growth in our EPS.”

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 11.9%, 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 0.6 percentage point to 33.2% 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 second quarter, net income rose 63.5% and in the first quarter, the figure rose 32.8%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the second quarter and by 9 cents in the first quarter.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 32 cents per share, an increase from 31 cents sixty days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.50 per to share to $1.53.

Competitors to Watch: Vitacost.com, Inc. (NASDAQ:VITC), CVS Caremark (NYSE:CVS), 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), Walgreen Company (NYSE:WAG), Target (NYSE:TGT), Wal-Mart (NYSE:WMT) and Perfumania Holdings, Inc. (NASDAQ:PERF).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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