PITTSBURGH _ Two years after GNC Holdings hired top retail industry executive Michael Archbold to reverse a downturn, he has been replaced by GNC board member Robert Moran, a former chairman and chief executive of PetSmart Inc.
In a surprise announcement Thursday morning, the Pittsburgh-based vitamin and wellness products maker said Moran, 65, would become interim chief executive effective immediately.
Archbold also has resigned from the board.
GNC is in the midst of a strategic review of its operations that includes possibly selling the company. Its labeling and ingredients have been targeted in two state investigations and on Thursday it released second-quarter earnings Moran called "disappointing."
Revenue fell by 2.4 percent to $673.2 million from the year-ago quarter and net income declined by 5 percent to $64 million.
Same-store sales fell 3.7 percent in company-owned stores and were down 6.6 percent in franchise locations.
Following the two announcements, GNC's shares plummeted 25.5 percent and closed at $20.28.
Commenting on the leadership change, GNC Chairman Michael Hines said, "As we continue the strategic review process and move with urgency to improve performance, the board believes it is the right time to undertake this change to drive effective execution of our plans."
