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Web-dominated annual direct sales stay flat for Vitamin Shoppe
For the year, Vitamin Shoppe`s direct sales fell by 1% while total sales increased 12.1%.
Topics: business finance
Direct sales, which are generated mainly through e-commerce, declined slightly in 2009 for Vitamin Shoppe Inc., a multichannel retailer of nutritional supplements.
For the fiscal year ended Dec. 26, Vitamin Shoppe, No. 171 in the Internet Retailer Top 500 Guide, recorded:
- A decrease in direct sales of 1% to $78.2 million from $79.0 million in 2008. Vitamin Shoppe doesn’t break out web sales as a percentage of its direct revenue. But in its recently filed annual report with the U.S. Securities and Exchange Commission, Vitamin Shoppe says its catalog sales are minimal. “Catalog sales were not material in 2008, and are expected to remain immaterial in the future, as customers migrate to our web site and stores,” the retailer says in its SEC filing. “In 2009 we increased the number of active online customers, defined by shopping frequency, by approximately 68,000 to 528,000.”
- Total sales increased 12.1% to $674.5 million from $601.5 million in 2008.
- Retail sales increased 14.1% to $596.3 million from $522.5 million in the prior year.
- Comparable-store sales increased 5.2%.
- Net income increased year over year 54.9% to $12.7 million from $8.2 million.
Based on calculations by Internet Retailer, direct sales accounted for 11.6% of total sales for Vitamin Shoppe compared with 13.1% in 2008.
“Vitamin Shoppe continues to demonstrate its ability to grow both sales and net income amidst broader economic conditions that remain challenging,” says CEO Rick Markee.
For the fourth quarter, Vitamin Shoppe recorded:
- An increase in direct sales of 1.1% to $19.1 million from $18.9 million in the fourth quarter of 2008.
- Total sales increased 13.5% to $162.4 million from $143.1 million in Q4 2008.
- Retail sales increased 15.4% to $143.3 million from $124.2 million in the prior year.
- Comparable-store sales increased 7%.
- Net income increased year over year 216.7% to $1.9 million from $600,000 in the fourth quarter of 2008.
Based on calculations by Internet Retailer, direct sales accounted for 11.8% of total sales compared with 13.2% in 2008.