VitaminShoppe.com Reports Strong Third Quarter Sales
/FROM PR NEWSWIRE NEW YORK 800-776-8090/
TO BUSINESS EDITOR:
VitaminShoppe.com Reports Strong Third Quarter Sales
Sales Grow 57%, Lead the Category Total Unique Customers Increase 43%
NEW YORK, Nov. 2 /PRNewswire/ -- VitaminShoppe.com, Inc. (Nasdaq: VSHP), a
leading e-commerce provider of vitamins, nutritional supplements and minerals,
announced today its financial results for the fiscal third quarter and for the
nine months ended September 30, 1999. Third quarter net sales reached
$3.7 million, a 57% increase over the previous quarter and a 258% increase
over the third quarter of 1998.
Net sales for the first nine months of 1999 reached $8.0 million, more
than five times the sales of the comparable period of 1998. This is the first
public earnings report for the Company, which completed its IPO in October
1999.
The Company reported a net loss for third quarter 1999 of $6.6 million, or
$0.51 per share, compared with a $0.8 million loss in the year earlier
quarter. For the nine months ended September 30, 1999, the net loss was
$11.0 million or $0.84 per share. For the comparable period in 1998, the net
loss was $1.5 million. The Company continues to invest in marketing and
technology initiatives to expand its leadership position and to better service
its customers.
VitaminShoppe.com has established its market leadership in the fast
growing vitamin and nutrition category by providing consumers with the most
extensive selection of products, the best every day low pricing and next day
delivery at no extra charge. Consumers have embraced the VitaminShoppe.com
shopping experience. Total unique customers increased from 46,000 at the end
of Q2 to 66,000 at the end of Q3, a 43.2% growth rate. The average number of
orders at VitaminShoppe.com grew at a compounded monthly rate of 13.4% over
the past nine months. The average order size in the third quarter was $70.
The VitaminShoppe.com retention rate is over 55%, reflecting first time
customers returning for subsequent purchases.
"Our strong third quarter sales, customer growth and retention rate
reflect consumer enthusiasm for VitaminShoppe.com's superior service, huge
selection of products and value pricing," said Kathryn Creech, President and
CEO of VitaminShoppe.com. "Customers also benefit from the capabilities
provided by our parent company, Vitamin Shoppe Industries Inc., which enable
us to provide next day delivery on an extraordinary range of quality products
at great prices.-- In July of 1999, the Company completed a private equity placement with
a group of strategic equity investors, including J.H. Whitney & Co,
Chase Venture Capital, Flatiron Partners and FdG Associates. The net
proceeds of this transaction to the Company were approximately
$24 million.
-- In October of 1999, the Company successfully completed an initial
public offering of 4,545,455 shares of Class A common stock at an
offering price of $11.00 per share, raising approximately $45 million
in net proceeds to the Company.
-- Since July, the Company hired Philip Teplitzky as Chief Technology
Officer and Ann Sardini as Chief Financial Officer, both respected
professionals in their fields.
-- During the quarter, the Company began implementation of a multi-million
dollar marketing campaign in online media, radio, television, print and
direct mail.
-- The Company recently completed a multi-year advertising deal with AOL,
purchasing over 240 million impressions in targeted areas of AOL.
-- The Company continued to build its Board of Directors, adding a
nationally recognized integrated health physician, Woodson C. Merrell,
M.D. and a well-known marketing strategist, Barbara Feigin, who from
1983 to 1999 served as Executive Vice President and Worldwide Director
of Strategic Sources for Grey Advertising.
VitaminShoppe.com is a leader in the online sale of products related to
healthy living. The Company focuses on providing its customers with superior
selection, service and price, with over 18,000 products, 400 brands,
year-round discounts of 20 to 40% and next day UPS delivery. In addition to
its extensive selection of vitamins, supplements, nutritional products,
personal care, homeopathy and fitness products, VitaminShoppe.com delivers
content that helps its customers make better purchase decisions. This content
includes branded information from resources including drkoop.com,
drweil.com, intelihealth.com, and
onhealth.com. Vitamin Shoppe Industries Inc. is a Company with
over 23 years experience in marketing vitamins, supplements, minerals and
health-related products. |
