NORTH BERGEN, N.J., Aug. 7, 2012 /PRNewswire/ —

Second Quarter Highlights:

• Comparable store sales grew 8.3%
• E-commerce revenue increased 20.3%
• Net sales increased 13.4%
• Fully diluted EPS of $0.55, an increase of 37.5%

Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal second quarter ended June 30, 2012. Net sales in fiscal second quarter 2012 advanced 13.4% while operating income rose 35.9%. During the period, the company reported fully diluted earnings per share (EPS) of $0.55; up from $0.40 in fiscal second quarter 2011.

Tony Truesdale, Chief Executive Officer of the Company commented, “I am very pleased with our strong second quarter results. Our top line growth was driven by continued strong retail performance with positive comparable store sales and solid e-commerce sales. The strength of our sales performance is supported by disciplined merchandising, knowledgeable Health Enthusiasts and superior execution.”

Mr. Truesdale further commented, “Looking ahead, we have many opportunities to continue to fuel our long-term growth. These include; expanding our store base, introducing new products, international expansion and continuing to grow e-commerce. We also have the operational and financial discipline to continue to manage our business to ensure we deliver profitable growth.”

Fiscal Second Quarter 2012 Results

Net sales increased $29.0 million, or 13.4%, to $245.0 million for the three months ended June 30, 2012, compared with $215.9 million for the three months ended June 25, 2011. This increase was the result of; 1) an 8.3% increase in comparable store sales, 2) growth from new stores, and 3) a 20.3% increase in e-commerce sales.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $17.0 million, or 11.9%, to $159.2 million for the three months ended June 30, 2012, compared with $142.2 million for the three months ended June 25, 2011.

Gross profit increased $12.0 million, or 16.3%, to $85.8 million for the fiscal 2012 second quarter, compared with $73.7 million for fiscal second quarter 2011. Gross profit as a percentage of net sales was 35.0% for the quarter ended June 30, 2012, up from 34.1% in fiscal second quarter 2011. The improvement in gross profit margin reflects leverage on occupancy and supply chain costs.

Selling, general and administrative expenses (SG&A), including operating payroll and related benefits, advertising and promotion expense, depreciation and amortization, and other SG&A, increased $4.7 million, or 8.9%, to $58.1 million for the quarter ended June 30, 2012, compared with $53.3 million for the quarter ended June 25, 2011. SG&A as a percentage of net sales was 23.7% for the quarter ended June 30, 2012, compared to 24.7% in fiscal second quarter 2011.

Income from operations increased $7.3 million, or 35.9%, to $27.7 million for the three months ended June 30, 2012, compared with $20.4 million for the three months ended June 25, 2011. As a percentage of revenue, income from operations was 11.3% for the fiscal 2012 second quarter, compared with 9.4% for fiscal second quarter 2011.

Net income increased $4.6 million or 38.8%, to $16.6 million for the three months ended June 30, 2012, compared with $12.0 million for fiscal second quarter 2011. This was primarily attributable to stronger sales and margin improvement.

Earnings per diluted share increased 37.5% to $0.55 in fiscal second quarter 2012 from $0.40 in second quarter 2011.

Balance Sheet and Cash Flow

Cash and equivalents at June 30, 2012 were $50.4 million. Capital expenditures were $5.0 million in the quarter. Capital expenditures were used primarily for the build-out of new stores and improvements to existing stores, as well as computer equipment related to those stores.

2012 Outlook

For the current year management expects:

• To open 52 new stores
• Comparable store sales growth in mid-single digits for the remainder of the year
• Continued improvement in operating income margin
• Capital expenditures between $35 million and $40 million

Webcast

Management will host a conference call to discuss its fiscal second quarter 2012 results at 8:30 a.m. Eastern Time (ET) today. Interested investors and other parties may listen to the simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company’s website at www.vitaminshoppe.com. The online replay will be available immediately following the call. A telephonic replay will also be available beginning at 11:30 a.m. ET and can be accessed by dialing 1-877-870-5176 or for international callers, 1-858-384-5517. The passcode for the replay is 9067140. The replay will be available until 11:59 p.m. ET on August 14, 2012.

About Vitamin Shoppe, Inc. (NYSE:VSI)

Vitamin Shoppe is a leading specialty retailer and direct marketer of nutritional products based in North Bergen, New Jersey. The company sells vitamins, minerals, nutritional supplements, herbs, sports nutrition formulas, homeopathic remedies, green living products, and health and beauty aids to customers located primarily in the United States. The company carries national brand products as well as exclusive products under the Vitamin Shoppe, BodyTech and True Athlete proprietary brands. The Vitamin Shoppe conducts business through more than 550 company-owned retail stores, national mail order catalogs, and website, www.VitaminShoppe.com. Follow The Vitamin Shoppe on Facebook at http://www.facebook.com/THEVITAMINSHOPPE and on Twitter at http://twitter.com/#!/VitaminShoppe.

Forward Looking Statement

Certain statements in this press release are “forward-looking statements.” Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending, the performance of the Company’s products within the prevailing retail environment, trade restrictions, availability of suitable store locations at appropriate terms and other factors which are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in all filings with the Securities and Exchange Commission made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

SOURCE Vitamin Shoppe, Inc.