Vitamin Shoppe Falls as Acquisition Hurts Profit
Vitamin Shoppe Inc. (VSI) fell the most since its 2009 market debut after the supplements retailer reported fourth-quarter profit that trailed analysts’ estimates and said a recent acquisition will hurt earnings this year.
The shares tumbled 19 percent to $51.44 at the close in New York, for the biggest one-day drop since October 2009. The North Bergen, New Jersey-based company had gained 10 percent this year through yesterday, while the Standard & Poor’s Smallcap 600 Index advanced 5.2 percent.
Vitamin Shoppe, with more than 580 company-operated stores, said today in a statement that transaction and integration costs related to the $50 million acquisition of Seattle-based retailer Super Supplements Inc., which closed this month, will reduce profit by 3 cents a share this year.
Fourth-quarter profit rose 2.8 percent to $9.68 million, or 32 cents a share, from $9.41 million, or 32 cents, a year earlier. The average of 14 analysts’ estimates compiled by Bloomberg was 40 cents. Sales advanced 1.9 percent to $218.9 million. Analysts estimated $223.8 million, on average.
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