Nutritional supplements maker and marketer NBTY reports that 40% of direct sales came via the Internet in the first quarter of fiscal 2008 compared with 36% for the same quarter in 2007.
Bill Briggs , Senior Editor
Nutritional supplements maker and marketer NBTY Inc. reports that 40% of direct sales came via the Internet in the first quarter of fiscal 2008, compared with 36% for the same quarter in 2007. Net sales from the company’s online and catalog operations for Q1 of 2008 declined $14 million, or 28%, to $37 million from the same quarter last year.
The company attributes the direct division’s sales decline to discounted catalog pricing in the first quarter of 2007, which was not repeated in Q1 2008. The direct segment’s historical results reflect this pattern and should therefore be viewed on an annual and not quarterly basis, the company says.
The direct division’s strategic plan is to increase Internet sales by continuing to incorporate new technologies and the company plans to continue increasing the number of products available via its catalog and web sites. “We are confident the initiatives we instituted in our direct response business will be the cornerstone for generating positive results,” says NBTY chairman and CEO Scott Rudolph.
For the fiscal first quarter of 2008 ended December 31, 2007, overall net sales were $511 million, up 1% compared with $506 million for the first quarter of fiscal 2007. Net income for the first quarter was $46 million, down 10% compared with $51 million for Q1 2007.
NBTY, No. 148 in the Internet Retailer Top 500 Guide, markets and distributes a broad line of nutritional supplements in the U.S. and overseas. The company’s brands include Nature’s Bounty, Vitamin World, Puritan’s Pride, Holland & Barrett, Rexall, Sundown, MET-Rx, Worldwide Sport Nutrition and GNC (UK).