May 26, 2011, 4:13 PM

Web sales grew 16.3% for NBTY in Q2

The web accounts for 62% of total direct sales.

Mark Brohan

Research Director

Lead Photo

Direct-to-consumer sales grew only slightly for NBTY Inc. in the second quarter, despite solid growth in online sales for the retailer of vitamins and supplements.

For the second quarter of fiscal 2011 ended March 31, NBTY, No. 139 in the Internet Retailer Top 500 Guide, reported:

  • E-commerce sales increased 16.3% to $40.7 million in the second quarter from $35.0 million in the second quarter of fiscal 2010.
  • Direct response sales, which include catalog and web, grew year over year 1.2% to $65.6 million from $64.8 million.
  • Total sales grew 0.2% to $706.5 million from $705.1 million in the second quarter of fiscal 2010.
  • North American retail sales grew 5.5% to $57.8 million from $54.8 million in the second quarter of fiscal 2010.
  • Net loss was $20.1 million compared with net income of $46.1 million in the prior year. NBTY says the net loss is attributable to slower sales and costs related to its takeover by private equity firm The Carlyle Group in August 2010.

Internet Retailer calculates the web accounted for 5.8% of total sales and 62% of direct sales. That compares with 5.0% of total sales and 54% of direct sales in the second quarter of fiscal 2010.

“We believe that we remain the vitamin and nutritional supplements leader in the direct response and e-commerce sectors, and we continue to increase the number of products available via our catalog and web sites,” the company says in its recently released second quarter earnings report.

For the first two quarters:

  • E-commerce sales increased 18.9% to $75.4 million from $63.4 million in the first two quarters of fiscal 2010.
  • Direct response sales, which include catalog and web, grew year over year 7.1% to $125.7 million from $117.4 million.
  • Total sales declined 0.7% to $1.44 billion from $1.45 billion in the first two quarter of fiscal 2010. Total sales declined because of a drop in wholesale revenue, says NBTY.
  • North American retail sales grew 4.9% to $111.4 million from $106.2 million.
  • Net income grew 3.9% to $122.2 million compared with net income of $117.6 million in the prior year.

Internet Retailer calculates the web accounted for 5.2% of total sales in the first six months of 2011 and 60% of direct sales. That compares with 4.4% of total sales and 54% of direct sales in the same period of fiscal 2010.

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