Mike Arnold
Value, growth at reasonable price, long only, tech

GNC: Pullback Presents An Opportunity

Executive summary:

  • The sell-off in GNC Holdings shares appears overdone.
  • $500 million share buyback program designed to return value to shareholders could provide support for shares.
  • International expansion offers new avenue for growth.
  • Multi-faceted operating model, including company-owned stores, franchised outlets, manufacturing/wholesale products to third-parties and online sales diversifies revenue base.

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Shares of GNC Holdings (NYSE:GNC) are 26% cheaper today than they were just two months ago. Meanwhile, both top line revenue (+8.6% consolidated, +5% same-store sales) and bottom line EPS (+26%, excluding certain non-recurring items) growth continue to be robust.

Today, GNC shares are offering an interesting entry point given management's 2014 guidance, which includes EPS growth in the low teens, and is expected to

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