GNC

GNC Corp. (Pittsburgh) has reported a 4.1 percent decrease in consolidated revenues for the quarter ended June 30, 2005. It said the decrease was primarily the result of decreases in domestic same store sales in both company-owned stores and franchise locations as well as a reduced store base.

For the second quarter and the first six months of 2005, same-store sales decreased by 5.2 percent and 6.5 percent, respectively, in domestic company-owned stores, and 6.5 percent and 7.3 percent, respectively, for domestic franchised stores.

As of June 30, GNC had 12 fewer domestic company-owned stores and 83 fewer domestic franchise locations versus June 30, 2004. The decline in domestic same store sales occurred primarily in the diet category, and was partially offset by growth in other product categories, especially sports nutrition.

For the six months ended June 30, consolidated revenue decreased by 7 percent.

“I am extremely confident in our strategic direction focusing on product, price, and promotion,” said newly appointed president and ceo Bruce Barkus. “As a result of the key item strategy and competitive national pricing program instituted at the beginning of the year, we have made good progress in all categories except for diet, which continues to experience weak demand. By supporting these fundamentals with broad-based advertising, we are poised to increase store sales productivity and regain market share. These first six weeks have been truly rewarding as I have seen the exceptional talent within GNC and I look forward to great success.”

As of June 30, 2005, GNC operated 2638 company-owned stores in the U.S. and Canada and had 1241 domestic franchised locations, 1067 Rite Aid shop locations and 800 international franchised locations.