GNC 2012 Annual Report Download - page 6

Table of Contents
failure to successfully execute our growth strategy, including any delays in our planned future growth, any inability to expand our franchise
operations or attract new franchisees, or any inability to expand our company-owned retail operations;
changes in applicable laws relating to our franchise operations;
damage or interruption to our information systems;
the impact of current economic conditions on our business;
natural disasters, unusually adverse weather conditions, pandemic outbreaks, boycotts and geo-political events; and
our failure to maintain effective internal controls.
Consequently, forward-looking statements should be regarded solely as our current plans, estimates and beliefs. You should not place undue reliance on
forward-looking statements. We cannot guarantee future results, events, levels of activity, performance or achievements. We do not undertake and specifically
decline any obligation to update, republish or revise forward-looking statements to reflect future events or circumstances or to reflect the occurrences of
unanticipated events.
Throughout this Annual Report, we use market data and industry forecasts and projections that were obtained from surveys and studies conducted by
third parties, including the Nutrition Business Journal, and from publicly available industry and general publications. Although we believe that the sources are
reliable, and that the information contained in such surveys and studies conducted by third parties is accurate and reliable, we have not independently verified
the information contained therein. We note that estimates, in particular as they relate to general expectations concerning our industry, involve risks and
uncertainties and are subject to change based on various factors, including those discussed under the heading "Risk Factors" in this Annual Report.
PART I
Item 1. BUSINESS.
GNC Holdings, Inc. ("Holdings") is headquartered in Pittsburgh, Pennsylvania and the Class A common stock trades on the New York Stock Exchange
(the "NYSE") under the symbol "GNC." Based on our worldwide network of more than 7,600 locations and our online channels, we believe we are the
leading global specialty retailer of health and wellness products, including vitamins, minerals and herbal supplement products ("VMHS"), sports nutrition
products and diet products. Our diversified, multi-channel business model derives revenue from product sales through company-owned domestic retail stores,
domestic and international franchise activities, third-party contract manufacturing, e-commerce and corporate partnerships. We believe that the strength of our
GNC brand, which is distinctively associated with health and wellness, combined with our stores and online channels, give us broad access to consumers and
uniquely position us to benefit from the favorable trends driving growth in the nutritional supplements industry and the broader health and wellness sector.
Our broad and deep product mix, which is focused on high-margin, premium, value-added nutritional products, is sold under our GNC proprietary brands,
including Mega Men®, Ultra Mega®, GNC Total Lean, Pro Performance® and Pro Performance® AMP, and under nationally recognized third-party brands.
Based on the information we compiled from the public securities filings of our primary competitors, our network of domestic retail locations is
approximately eleven times larger than the next largest U.S. specialty retailer of nutritional supplements and provides a leading platform for our vendors to
distribute their products to their target consumers. Our close relationships with our vendor partners have enabled us to negotiate first-to-market opportunities.
In addition, our in-house product development capabilities enable us to offer our customers proprietary merchandise that can only be purchased through our
locations or through GNC.com. Since the nutritional supplement consumer often requires knowledgeable customer
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