GNC Holdings Inc (NYSE: GNC) shares headed skyward after reporting in-line quarterly earnings. Moreover, GNC and Harbin Pharmaceutical reported a $300-million strategic investment and China joint venture.
The Pittsburgh-based company reported consolidated revenue of $557.7 million in the fourth quarter of 2017, compared with consolidated revenue of $569.9 million in the fourth quarter of 2016. Excluding revenue for Lucky Vitamin of $20.7 million reported in the fourth quarter of 2016, fourth-quarter 2017 consolidated revenue increased $8.5 million or 1.6% over the prior year quarter. Lucky Vitamin was sold on September 30, 2017, as previously disclosed.
For the fourth quarter of 2017, the Company reported a net loss of $209.8 million compared with a net loss of $433.4 million in the prior year quarter.
Said CEO Ken Martindale, "Our results in the fourth quarter reflect our work to reinvigorate the GNC model and are indicative of the momentum we gained throughout the year.
"Customers are increasingly responding to our simplified pricing model, enhanced loyalty programs, and exclusive product lines, and we made meaningful strides in improving the customer experience across all our platforms."
Under the terms of the agreement with Harbin Pharmaceutical ("Hayao") the latter company will invest approximately $300 million in GNC, becoming the single largest shareholder in GNC (on an as converted basis).
In addition, GNC and Hayao have agreed to form a joint venture for the manufacturing, marketing, sale and distribution of GNC-branded products in China, leveraging the synergies between Hayao and GNC in the fast growing Chinese market.
GNC shares went through the roof, garnering 82 cents, or 19.6%, Tuesday to $5.01.
