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Why GNC Holdings, Inc. (GNC) Shares Crashed 16.6%?

by | Mar 6, 2019

GNC Holdings, Inc. (GNC)

M.Cap: $228 million

GNC Holdings, Inc. (NYSE: GNC) – is a global health and wellness brand that helps people live well. The company is known and trusted for quality performance and nutritional supplements, and its broad assortment features innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC.

Reason for the stock price crash

The shares of GNC Holdings crashed 16.6% on March 05, 2019 after the release of fourth quarter and full year financials of 2018.

In the fourth quarter of 2018, revenue declined 2.66% to $547.86 million and Adjusted EBITDA was $35.0 million compared with $56.3 million in the prior year quarter.

In February 2019, the company completed the last tranche of the approximately $300 million investment ($100 million received in 2018) by Harbin and applied proceeds to pay down debt. 

“While fourth quarter operating results were below our expectations, we recently achieved some major milestones in repositioning the company. The completion of Harbin’s $300 million strategic investment strengthens our capital structure and will accelerate our growth plans in China, while our $176 million strategic partnership with International Vitamin Corporation will create meaningful efficiencies in manufacturing, further strengthening the innovation and product development capabilities that set GNC apart and drive further reductions in our debt,” said Ken Martindale, GNC’s Chairman and CEO.

GNC Holdings, Inc. Reports Fourth Quarter and Full Year 2018 Results

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