PITTSBURGH -- General Nutrition Companies here has announced a sharp decrease in net earnings for the third fiscal quarter ended Oct. 10.
n in the year-ago period, a 25% fall-off. Basic earnings per share were 25 cents, compared with 30 cents in 1997.
Operating earnings dropped by 15% to $37.7 million from $44.2 million last year.
Third-quarter comparable-store sales decreased by 1.6% for corporately owned units and increased by 4.3% in U.S. franchise units.
"Revenue growth in the quarter was impacted by lower-than-expected same-store sales growth and lower third-party sales at manufacturing," said William Watts, president and chief executive officer.
"The decline in same-store sales is attributable to difficult comparisons with the year-earlier quarter as well as the impact of the company's previously announced change in retail pricing strategy," he said.
Earlier this year, GNC began rotational discounts of up to 40% on certain commodity items in all owned and franchised stores; and instituted everyday low prices for branded sports nutrition products in about 200 of its stores that are located in the same shopping centers as price-focused competitors.
GNC also announced that in the third quarter it repurchased 12 million shares of its common stock for $256 million dollars. In the year to date, the company has bought back a total of 14.5 million shares for $338 million.
GNC said it opened 175 new stores in the third quarter. It currently operates 3,898 stores -- 2,566 are company-owned, 1,332 are franchised -- under the General Nutrition Centers, Health & Diet Centre, Nature's Northwest, GNC Live Well and Amphora banners.
