Jul 31 2010
Vitacost.com, Inc. (NASDAQ: VITC), a leading online retailer and direct marketer of health and wellness products, today reported preliminary financial results for the second quarter ended June 30, 2010.
For the second quarter of 2010, the Company estimates net sales to be approximately $54.0 million, a 14% increase compared to the $47.3 million of net sales reported in the second quarter of 2009 and a 6% sequential decline from the $57.2 million of net sales reported in the first quarter of 2010. Revenue is expected to fall below the Company's prior revenue guidance of $57.2 to $58.2 million. Revenue was impacted by weaker than expected demand, as well as the continuation of manufacturing logistics issues previously disclosed by the Company in the first quarter of 2010.
For the second quarter of 2010, the Company expects to realize a loss per share in the range of $0.04 to $0.06, compared to earnings per share of $0.15 for the second quarter of 2009 and compared to earnings per share of $0.09 in the first quarter of 2010. Second quarter results include estimated transaction expenses associated with the Company's contested proxy solicitation and other non-recurring items. The Company's previously announced guidance for the second quarter was for earnings per share in the range of $0.09 to $0.10. The earnings shortfall was primarily attributable to lower gross margins due to a higher than expected percentage of sales derived from lower margin third party products and higher than expected shipping costs; and negative leverage with higher than expected operating costs off of a lower sales base.
All figures in this release remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results.
The new Board of Directors, formed on July 21, 2010, is conducting a review of operations to identify and introduce changes to the Company's business plan and operating strategy as are necessary to improve the Company's financial performance.