Vitamin Shoppe's 2Q earnings increase 64 percent

AP News
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Posted: Jul 28, 2011 6:47 PM
Vitamin Shoppe's 2Q earnings increase 64 percent

Vitamin Shoppe Inc. said Thursday that its second-quarter net income surged 64 percent as it sold more products in stores and through its website.

The specialty retailer and direct marketer of vitamins said net income rose to $11.95 million, or 40 cents a share. That compared with net income of $7.3 million, or 26 cents a share, in the second quarter of 2010.

Revenue rose 12.3 percent to $215.9 million, which included an 8 percent increase in sales at stores open a year. That's an important measure for retailers because it excludes new or recently closed locations. Vitamin Shoppe posted a 4.4 percent increase in direct sales through its online business.

The company also said costs rose 10.6 percent.

Analysts surveyed by FactSet had predicted earnings of 38 cents a share on revenue of $211.7 million.

For the full year, the North Bergen, N.J., company has forecast a 7 percent increase in sales from stores open a year and 48 new stores.

Vitamin Shoppe shares rose $3.69, or 8.6 percent, to close at $46.66 before the earnings were released. The stock fell 16 cents in after-hours trading.