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Wednesday, August 8, 2018

Vitamin Shoppe digital sales up >36%


Vitamin Shoppe (NYSE:VSI) reports total comparable sales fell 1.1% in Q2.
Digital comparable net sales rose 36.9%.
Gross margin rate up 60 bps to 33.4%, primarily due to improvements in margin from more favorable pricing and promotions and lower costs through vendor partnerships.
SG&A expense rate grew 180 bps to 29.3%, primarily the result of deleverage in store payroll and store operating costs as well as increased health care costs.
Adjusted operating margin rate expanded 130 bps to 4%.
Store count +1 Y/Y to 782.
On May 7, the company completed the sale of Nutri-Force, its manufacturing business.
FY2018 Guidance: Total comp sales: negative low to mid single digits; Gross margin rate: 30.5% to 31%; SG&A expense rate: $340M to $345M; Tax rate: 28%; Capex: ~$30M.

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