GNC Year-End revenues down two percent in 2005

GNC Corporation reported a loss of over 2 percent in revenue for 2005, compared with 2004 earnings, due to a $58.0 m decrease in diet product sales.

North America's largest specialty retailer of nutritional supplements, GNC, announced its full year results for 2005 on Thursday, and said a dip in revenue was offset by growth in their other major product categories.

Consolidated revenues were up 8.0 percent for the fourth quarter of 2005 at $325.4 m compared to the consolidated revenues for the same quarter of 2004. GNC attributes this to an 8.1 percent increase in sales in company-owned stores and 1.5 percent rise in sales in franchise locations over the same period.

"Growth has been fueled by our national marketing programs, instituted in early 2005, which included broadcast direct marketing and print advertising designed to broaden our consumer reach," said president and CEO Joseph Fortunato.

"We are also benefiting from excellent expense controls and efficiencies gained in all segments of the business".

Net income increased 107.7 percent for the fourth quarter of 2005 to $5.4 m compared to $2.6 m in the fourth quarter of 2004.

GNC, headquartered in Pittsburgh, Pennsylvania, operates 2,650 company-owned stores in the U.S. and Canada and has 1,156 domestic franchised locations, 1,149 Rite Aid locations and 858 international franchised locations.

GNC is a specialty retailer of nutritional supplements, which includes vitamin, mineral and herbal supplements, sports nutrition products, diet and energy products and other wellness products.