GNC Could Lose $3.5 Million During Day Off

GNC Holdings Inc GNC temporarily closed its 4,464 U.S. stores Wednesday — and forfeited an estimated $3.66 million in revenue.

Strategic, Temporary Closures

According to a press release, shops remained shuttered for one business day as leadership implemented a pricing system consistent among stores and the online outlet. Thursday shoppers will notice a price cut on some products and an increase on others, and they will be invited into a new loyalty program supported by a new mobile app.

The strategy was effected at a time of struggle for the wellness retailer, which reported a third-quarter sales decrease of 8.5 percent in domestic company-owned stores. Domestic franchise locations saw an 8.9-percent decrease.

Furthermore, GNC’s quarterly revenue hit $525.5 million in the 7,028 U.S. and Canadian stores — a 7 percent drop from the 2015 benchmark.

Investor Sentiment

The company’s latest attempt to revive business did not appear to boost confidence among investors, as shares fell about 4 percent during the day off.

Still, the $0.46 drop is negligible compared to the company’s periodic plummets throughout 2016.

The stock experienced a steady decline from January onward, with December shares resting at about a third of the year-opening $32. The annual chart reveals three periods of steady inactivity followed by sharp, $7- to $10-dollar drops.

Nevertheless, GNC’s Pittsburgh-based team and Interim CEO Robert Moran are looking to rally.

“The New GNC leaves the old, broken model behind," Moran, who joined the leadership team in July, said in a press release. "We're confident it will have a positive impact on the business, but it will take time for the changes to take hold and translate to improved financial results."