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Vitamin Shoppe Sales, Income Up in 2Q
July 22, 2010
2 Min Read
NORTH BERGEN, N.J. Vitamin Shoppe Inc. (NYSE: VSI) released positive preliminary (unaudited) results for its fiscal second quarter (2Q10), ended June 26, 2010. Operations income, net sales and net income were all up, and comp store sales rose as well. The company also completed a $169 million secondary offering of common stock during the quarter.
Of particular note was the fact that 2Q10 marked Vitamin Shoppes 19th consecutive quarter of comparable same-store sales growth, as comp store sales were up 8.6 percent for 2Q10 from the same period in 2009. In addition, net income rose 73.8 percent, while income from operations increased by 27.2 percent; operations income was up 31.3 percent excluding expenses associated with the secondary offering. Net sales hit $192.2 million for 2Q10, up $21.1 million (12.3 percent) compared to 2Q09. The company attributed the rise to the growth in comp store sales, new store openings (10 new outlets opened during 2Q10) and growth in online purchases.
Among other notable numbers:
Cost of goods sold increased $13.2 million (11.4 percent) in the quarter versus 2Q09.
Gross profit rose 14.2 percent ($7.9 million) to $63.7 million in 2Q10, compared to $55.8 million for the quarter ended June 27, 2009.
SG&A, including payroll, related benefits, advertising, etc., increased $5.1 million to $48.2 million for the quarter; this included $0.5 million of expenses incurred in connection to the secondary stock offering.
Income from operations was up (27.2 percent), as was income from operations as a percentage of net sales (hitting 8.0 percent for the quarter).
Net income was $7.3 million in 2Q10, compared to $4.2 million for 2Q09.
Earnings per diluted share were also up, hitting $0.26 for the 2010 quarter, compared to $0.10 for the comparable 2009 quarter.
As mentioned earlier, Vitamin Shoppe completed a secondary public offering of 7,171,768 shares of its common stock to the tune of $169 million in late May 29. All of the shares of common stock were sold by certain stockholders of Vitamin Shoppe; the company did not receive any proceeds from the sale of shares in the offering.
Vitamin Shoppe also updated its 2010 outlook. The company expects to spend approximately $22 million in total capital expenditures to open around 46 new stores. It also expects to see continued comp store sales growth, inventory growth at a rate less than total sales growth, continued reduction of debt, and improved operating margins.
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