Friends who love health should all know GNC, right?
Deep-sea fish oil and grape seed essence are its star products, which are also prepared at home all the year round. Every time I return to China, I am often pulled by my relatives and friends to help me bring a few bottles, which can be said to be a very sought-after health care product.
You know, GNC has more than 8,000 physical stores around the world, including more than 5,900 in the United States. ?
In recent years, due to the decline in performance, the flow of people in shopping centers has decreased. At a recent internal meeting of the company, the CEO of GNC said that 700 to 900 retail stores would be closed by the end of 2020. ?
As a global health care product giant, GNC was founded in 1935, and is the largest retailer of health and nutrition products in the world, focusing on sports nutrition products, including vitamins, minerals and other professional nutritional supplements.
161On October 27th, GNC Holding Company (NYSE: GNC) released 16 financial report for the third quarter, with a sharp decline in performance. This quarter's operating income was 628 million US dollars, down 8. 1% compared with last year. The net profit was $32.4 million, a year-on-year decrease of 29.3%. It is worth noting that revenue in the second quarter only decreased by 2.4% year-on-year. So the overall decline of the company is accelerating.
On the day of the conference, Robert Moran, the interim CEO, explained to investors that the company was in a seriously broken business model and needed to be changed urgently. At the same time, it said that the expected performance will no longer be given in the next few quarters, and the company will stop buying back shares. These seemingly simple revelations show that no matter how brilliant the brand was, GNC is now in a very difficult situation, and there is no turning point in the accelerated decline.
The third quarter report also mentioned international business, with a total reduction of $9,500 outside North China. Although in sales increased by USD 65,438+0,800, its share was too small to make up for, and the whole international business decreased by USD 65,438+08.7%.
Everything has two sides, and now may be a good time for companies that want to make acquisitions. If all aspects are properly used, discussed and strategically integrated, the merger will find a point of convergence to amplify the brand value.