Vitamin Shoppe's online sales are soaring
A few weeks after welcoming a new CEO, the Vitamin Shoppe has more good news to celebrate: soaring online sales.
During its second quarter ended June 30, the retailer's digital commerce sales increased 37 percent. This increase comes after the retailer increased online sales by 20% in the first quarter.
The company's same store sales, however, fell 1.1 percent, contributing to its total sales fall of 1 percent in the quarter, compared to last year.
"The company delivered improved financial results primarily attributable to growth from digital commerce and better gross margins," said Bill Wafford, Chief Financial Officer. "Additionally, the excess cash flow generated in the quarter, coupled with a draw down on our line of credit, enabled us to opportunistically repurchase $30 million face value of our convertible debt due December 2020 at a discount to par value. To date, we have repurchased $75 million face value of our convertible debt, further improving our financial position."
Total sales of $293.1 million in the second quarter were 1.1% lower than the same period of the prior year.
During the quarter, the company opened one store in the quarter and closed two.
Vitamin Shoppe announced last month the appointment of former Godiva executive Sharon Leite as the company's new CEO.
"Our focus on retail fundamentals is starting to deliver improved performance. In the second quarter we saw improvement across all key metrics including: comp sales, customer acquisition and product margin. Additionally, as we announced on July 23rd, Sharon Leite will be our new CEO. I am delighted to have a leader of Sharon's caliber to spearhead the ongoing turnaround and future growth, building on the recent good work of the organization," said Alex Smith, Chairman of the Vitamin Shoppe.
For the full year, the company expects same store sales increases in the low to mid single digits.
The Vitamin Shoppe operates more than 775 stores under The Vitamin Shoppe and Super Supplements retail banners.