GNC Holdings (GNC, Financial) is not in the best of health. The performance of the stock on the exchange wasn’t impressive also. The stock even fell to its 52-week low in the past. But GNC Holdings is now more focused about its turnaround. The efforts of GNC are evidence of the slow but steady growth on the exchange. Further, the management of the company is thinking that it has some key reasons to grow in the future. GNC is laser focused on refining and brand positioning. It is expecting these efforts to prove evolutionary for the company in the future. It is trying to be close to what its customers desire.
Focusing on improvements
GNC is focusing on various aspects to improve its profitability. It has made many strategic plans for its growth going forward. Under this strategy, GNC is investing meaningfully in the functions to improve its decision and execution.
GNC is expecting better wholesale growth in future. It is seeing some strengths in the international franchise model and many countries are showing positive signs in this regard. In addition, GNC will be focusing on finding new ventures and new potential markets to explore them in to a profitable venture which can be a growth driver for the company in future.
Moving on, GNC is trying to focus on fulfilling the customer’s desire so that it may see more customer engagement to the company. It is making certain changes in the structure in this regard. It has made several adjustments and has added a management team which will be mainly focusing on marketing, e-commerce, franchising and human resource.
Strong growth in the cards
Moving on, management is expecting good growth in the organic segment and thinks that GNC has enough potential to grow in this segment both through company-owned stores and franchises. With the aging and diversity of the customers towards being health conscious have surged the demands for vitamins and supplements giving GNC ample chances for better market capitalization in the future. Moving on, GNC is also seeing good opportunities from its online shopping platform. With the growth in the retail channel, GNC is confident that its online platform will serve the customers best providing a branded customer experience wherever they choose to shop.
The recent results have shown that GNC Holdings is improving. Further the management is confident about its smooth functioning with the available inventory levels. It is also aligning the manufacturing plant to align its inventories with its growing business. Though the growth is slow, the management of GNC Holdings is confident of better performance in future.
Conclusion
Hence, it will be a wise idea to continue holding GNC for the long run as the stock's performance is expected to improve in the long run.
