Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

Vitamin Shoppe: Sell-Off And 2014 Tailwinds Create Attractive Entry Point - 30% Upside

The Vitamin Shoppe (NYSE:VSI) has had a very weak year (the stock is down almost 30% year to date) due to several factors:

  1. Weak Comp Results
  2. Amazon (NASDAQ:AMZN) entering the supplement market, with a focus on VSI's core customer (baby boomers)
  3. Increased competition from GNC (NYSE:GNC)

I would argue that each of these concerns is overdone. Though Amazon is entering the market, VSI controls only 3% market share in the space and the industry will grow faster than the overall retail industry for the foreseeable future, so there is room so many competitors to succeed. GNC's Gold Card program has made no impact on VSI's business to date. Weak comps results for 2013 are...

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