Vitamin Shoppe, Inc (VSI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $11.61 million, or $ 0.49 a share in the quarter, against a net profit of $6.13 million, or $0.22 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $8.60 million, or $0.36 a share compared with $11.10 million or $0.39 a share, a year ago. Revenue during the quarter grew 3.88 percent to $304.86 million from $293.49 million in the previous year period. Gross margin for the quarter expanded 175 basis points over the previous year period to 32.85 percent. Operating margin for the quarter stood at negative 7.44 percent as compared to a positive 3.79 percent for the previous year period.
Operating loss for the quarter was $22.68 million, compared with an operating income of $11.12 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.50 million compared to $18.50 million in the prior year period. At the same time, adjusted operating margin contracted 89 basis points in the quarter to 5.41 percent from 6.30 percent in the last year period.
Commenting on the quarter’s results, Colin Watts, Chief Executive Officer of the Vitamin Shoppe stated, “Our top line growth is not yet where we want it to be as fourth quarter comparable sales were disappointing, but generally in line with our expectations. Although the external environment was more difficult than we planned coming into 2016, we made significant progress in rolling out initiatives tied to our reinvention strategy. While we are encouraged by the early results of these programs in 2016, we acknowledge that they will still take time to reach full scale. In addition to good progress on growth initiatives during the quarter, we were particularly pleased with accelerated progress in our cost reduction and margin enhancement initiatives, which are vital to building a stronger Return on Capital profile for our Company in 2017. We still have a ways to go to realize our full Reinvention vision, but we remain bullish about our long-term prospects for sustainable, profitable growth.”
Working capital decreases marginally
Vitamin Shoppe, Inc has witnessed a decline in the working capital over the last year. It stood at $151.55 million as at Dec. 31, 2016, down 3.53 percent or $5.54 million from $157.09 million on Dec. 26, 2015. Current ratio was at 2.13 as on Dec. 31, 2016, down from 2.34 on Dec. 26, 2015. Cash conversion cycle (CCC) was almost stable at 43 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 58 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went up to 16 days for the quarter from 9 for the same period last year.
Debt moves up
Vitamin Shoppe, Inc has witnessed an increase in total debt over the last one year. It stood at $131.87 million as on Dec. 31, 2016, up 6.86 percent or $8.46 million from $123.41 million on Dec. 26, 2015. Total debt was 17.96 percent of total assets as on Dec. 31, 2016, compared with 16.48 percent on Dec. 26, 2015. Debt to equity ratio was at 0.30 as on Dec. 31, 2016, up from 0.26 as on Dec. 26, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
