GNC Holdings, Inc. Reports First Quarter 2017 Results

PITTSBURGH, April 18, 2017

Same store sales decreased 3.9% in domestic company-owned stores (including GNC.com sales) in the first quarter of 2017. In domestic franchise locations, same store sales decreased 4.6%.

For the first quarter of 2017, the Company reported net income of $23.9 million compared with $50.8 million in the prior year quarter. Diluted earnings per share ("EPS") was $0.35 for the first quarter of 2017 compared with $0.69 in the prior year quarter. Excluding gains on refranchising in both periods and a legal charge in the current quarter related to the outcome of litigation the Company pursued of a potential breach under its UK license agreement, adjusted EPS was $0.37 and $0.69 in the three months ended March 31, 2017 and 2016, respectively.

"The One New GNC, represents a fundamental change in our business model and in the first quarter of 2017, we saw those transformational changes begin to bear fruit," said Bob Moran, Interim Chief Executive Officer. "We're encouraged by positive trends in transactions, and by the early performance of our new loyalty programs, which are demonstrating their power to increase consumer frequency and spending."

Update on One New GNC

• Transaction growth continued in the first quarter, up 9.3%, resulting in sequential improvement in same store sales.
• As of the end of the first quarter of 2017, 5 million consumers had joined the myGNC Rewards Program and there were approximately 78,000 PRO Access members. Over the course of the year, the Company will begin leveraging the CRM information to better reach and more cost effectively speak to its customers.
• GNC.com sales decreased 7.2% in the first quarter of 2017. In the third quarter of 2016, prices at GNC.com were aligned with stores to eliminate any competition between selling channels, including franchisees. As an element of the Company's omnichannel strategy, early in the first quarter of 2017, the Company launched a GNC storefront on Amazon (sales from which are included in the GNC.com business unit) which is exceeding the Company's initial expectations. During the first quarter, the Company also increased its online marketing program and was pleased with the lift in traffic that we experienced during the campaign.

Same Store Sales