-- Comparable store sales grew 8.6% for the fiscal second quarter of 2010 versus last year, net sales increased 12.3%

-- Income from operations increased 27%

-- Net income increased 74%

-- Diluted EPS increased 160% to $0.26 per share ($0.29 per share excluding nonrecurring expenses associated with the secondary offering and loss on extinguishment of debt)

-- Opened 10 stores during the quarter

-- Successful completion of a $169 million secondary offering of common stock in May

PR Newswire -- July 22, 2010

NORTH BERGEN, N.J., July 22 /PRNewswire-FirstCall/ -- Vitamin Shoppe, Inc.
(NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced its preliminary (unaudited) results for its fiscal second quarter ended June 26, 2010.

"2010 started strong and that momentum continued into the second quarter," said Rick Markee, Chairman and Chief Executive Officer of Vitamin Shoppe, Inc.
"Comparable store sales for the second quarter of 2010 increased 8.6%, making this our 19th consecutive quarter of comparable same-store sales growth.
Additionally, we continue to achieve operating leverage across our business.
Income from operations increased by 27.2% (31.3% excluding expenses associated with the secondary offering) and net income was up 73.8%."

Fiscal Second Quarter 2010 Results

Net sales increased $21.1 million, or 12.3%, to $192.2 million for the three months ended June 26, 2010, compared with $171.1 million for the three months ended June 27, 2009. The increase was the result of the growth in comparable store sales, strong performance from new stores and a 5.1% increase in direct sales driven by further expansion in Vitamin Shoppe's online business.

The Company operated 463 stores as of June 26, 2010, compared with 425 stores as of June 27, 2009. Overall store sales for the three months ended June 26, 2010 rose due to an increase in non-comparable store sales of $7.1 million and an increase in comparable store sales of $13.0 million, or 8.6%.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $13.2 million, or 11.4%, to $128.5 million for the three months ended June 26, 2010, compared with $115.4 million for the three months ended June 27, 2009.

Gross profit increased $7.9 million, or 14.2%, to $63.7 million for the three months ended June 26, 2010, compared with $55.8 million for the three months ended June 27, 2009. Gross profit as a percentage of sales was 33.1% for the quarter ended June 26, 2010, compared with 32.6% for the comparable prior year period. The improvement reflects efficiencies in a number of areas including warehouse and transportation 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 $5.1 million, or 11.8%, to $48.2 million for the three months ended June 26, 2010, compared with $43.2 million for the three months ended June 27, 2009. SG&A as a percentage of net sales decreased to 25.1% for the quarter, compared with 25.2% for the comparable prior year period. Included in SG&A for the three months ended June 26, 2010 are $0.5 million of expenses incurred in connection with a secondary offering of the Company's common stock during the quarter. Excluding such expenses, SG&A as a percentage of net sales showed improvement by decreasing to 24.8% for the quarter, compared with 25.2% for the comparable prior year period. This reflects the ongoing maturation of the store base, leverage on corporate expenses and ongoing attention to financial disciplines.

Income from operations increased $3.3 million, or 27.2%, to $15.4 million for the three months ended June 26, 2010, compared with $12.1 million for the three months ended June 27, 2009. Income from operations as a percentage of net sales increased to 8.0% for the 2010 quarter, compared with 7.1% for the comparable prior year period. Excluding expenses for the secondary offering, income from operations increased 31.3% while income from operations as a percentage of net sales increased to 8.3% for the 2010 quarter, compared with 7.1% for the comparable prior year period.

Net income increased 74% to $7.3 million for the three months ended June 26, 2010, compared with $4.2 million for the three months ended June 27, 2009.
Earnings per diluted share increased to $0.26 for the three months ended June 26, 2010, compared with $0.10 for the three months ended June 27, 2009. Net income benefited from lower interest expense versus the same period in 2009, resulting from ongoing debt reduction. Net income for the current quarter includes a pretax loss on extinguishment of debt and fees related to the secondary offering, totaling $1.1 million (or approximately $0.03 per share, net of tax). Excluding these items, earnings per diluted share for the quarter were $0.29.

The Company completed a secondary public offering of 7,171,768 shares of its common stock on May 29, 2010. All of the shares of common stock were sold by certain stockholders of Vitamin Shoppe. The Company did not receive any proceeds from the sale of shares in the offering.

2010 Outlook

The Company updated its outlook for 2010. Vitamin Shoppe expects:

-- to spend approximately $22 million in total capital expenditures while
opening approximately 46 new stores;
-- continued comparable store sales growth for the remainder of the year in
line with industry growth in the mid-single digits;
-- an effective tax rate for the remainder of the year of approximately
40%;
-- diluted weighted average shares outstanding of 28.5 million reflecting
the exercise of options in conjunction with the secondary offering;
-- inventory growth at a rate less than total sales growth;
-- continued reduction of debt and to fund store growth with excess cash
flow; and
-- to improve its operating margin reflecting leverage on gross margin and
selling, general and administrative expenses (including corporate and
depreciation and amortization expense).

Conference Call

The Company will hold a conference call at 10:00 am Eastern Time today to discuss its fiscal second quarter 2010 results. The call can be accessed live over the phone by dialing 1-888-713-4199, or for international callers, 1-617-213-4861, passcode number 93121665. A replay will be available one hour after the call and can be accessed by dialing 1-888-286-8010 or for international callers, 1-617-801-6888. The passcode for the replay is 10502830.
The replay will be available until July 29, 2010.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company's website at www.vitaminshoppe.com. The on-line replay will be available beginning immediately following the call.

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, MD Select, and VS Basics proprietary brands. The Vitamin Shoppe conducts business through more than 450 Company-owned retail stores, national mail order catalogs, and websites, www.VitaminShoppe.com and www.EcoShoppe.com, and has a social community site at www.VSconnect.com.

Certain statements herein 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 set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 26, 2009 and in all filings with the Securities 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.

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

Three Months Ended
------------------
June 26, June 27,
2010 2009
---- ----

Net sales $192,234 $171,143
Cost of goods sold 128,541 115,381
------- -------
Gross profit 63,693 55,762
Selling, general and
administrative expenses 48,246 43,171
Related party expenses - 447
--- ---
Income from operations 15,447 12,144
Loss on extinguishment of debt 568 -
Interest expense, net 2,562 4,832
----- -----
Income before provision for
income taxes 12,317 7,312
Provision for income taxes 5,008 3,106
----- -----
Net income 7,309 4,206

Preferred stock dividends in
arrears - 2,628
Net income available to common
stockholders $7,309 $1,578
====== ======

Weighted average shares
outstanding
Basic 27,130,809 14,175,906
Diluted 28,159,448 15,670,533
Net income per share
Basic $0.27 $0.11
Diluted $0.26 $0.10

Six Months Ended
----------------
June 26, June 27,
2010 2009
---- ----

Net sales $383,847 $343,698
Cost of goods sold 255,140 230,924
------- -------
Gross profit 128,707 112,774
Selling, general and
administrative expenses 95,188 87,113
Related party expenses 816
---
Income from operations 33,519 24,845
Loss on extinguishment of debt 1,120 -
Interest expense, net 5,489 9,839
----- -----
Income before provision for
income taxes 26,910 15,006
Provision for income taxes 10,875 6,238
------ -----
Net income 16,035 8,768

Preferred stock dividends in
arrears - 5,205
Net income available to common
stockholders $16,035 $3,563
======= ======

Weighted average shares
outstanding

Basic 26,911,896 14,175,906
Diluted 27,933,956 15,820,009
Net income per share

Basic $0.60 $0.25
Diluted $0.57 $0.23

Key Performance Indicators and Statistics (In thousands, except store
data):

Three Months Ended Six Months Ended
------------------ ----------------
June 26, June 27, June 26, June 27,
2010 2009 2010 2009
---- ---- ---- ----

Net sales $192,234 $171,143 $383,847 $343,698
Increase in comparable
store net sales 8.6% 4.3% 7.4% 4.7%
Gross profit as a percent
of net sales 33.1% 32.6% 33.5% 32.8%
Income from operations $15,447 $12,144 $33,519 $24,845
Depreciation and
Amortization $5,635 $5,215 $11,049 $10,293
Amortization of deferred
financing fees $189 $292 $474 $584

Three Months Ended Six Months Ended
------------------ ----------------
June June June June
26, 27, 26, 27,
2010 2009 2010 2009
---- ---- ---- ----
Store Data:
Stores open at beginning
of period 453 418 438 401
Stores opened 10 8 26 25
Stores closed - (1) (1) (1)
Stores open at end of
period 463 425 463 425
=== === === ===

Three Months Ended Six Months Ended
------------------ ----------------
June
June 26, June 27, June 26, 27,
2010 2009 2010 2009
---- ---- ---- ----

Sales:
Retail $171,868 $151,760 $340,931 $303,402
Direct 20,366 19,383 42,916 40,296
------ ------ ------ ------
Net sales $192,234 $171,143 $383,847 $343,698
======== ======== ======== ========

Income from
operations:
Retail 30,349 24,987 61,705 49,662
Direct 3,627 3,720 8,118 8,086
Corporate costs (18,529) (16,563) (36,304) (32,903)
------- ------- ------- -------
Income from
operations $15,447 $12,144 $33,519 $24,845
======= ======= ======= =======

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

December
June 26, 26,
2010 2009
---- ----
ASSETS

Current assets:
Cash and cash equivalents $18,193 $8,797
Inventories 106,251 106,091
Prepaid expenses and other current assets 17,208 13,401
Deferred income taxes 3,103 5,145
----- -----
Total current assets 144,755 133,434
Property and equipment, net. 82,420 83,960
Goodwill 177,248 177,248
Other intangibles, net 70,012 70,356
Other assets:
Deferred financing fees, net of accumulated
amortization of $2,253 and $2,856 in 2010
and 1,310 2,384
2009, respectively
Other long-term assets 1,844 1,875
----- -----
Total other assets 3,154 4,259
----- -----
Total assets $477,589 $469,257
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $- $20,000
Current portion of capital lease obligation 1,648 1,537
Revolving credit facility 33,000
Accounts payable 16,660 25,075
Deferred sales 8,502 14,386
Accrued salaries and related expenses 5,351 7,551
Other accrued expenses 16,894 14,469
------ ------
Total current liabilities 82,055 83,018
Long-term debt 75,106 100,106
Capital lease obligation, net of current
portion 1,619 2,303
Deferred income taxes 18,681 19,945
Other long-term liabilities 5,017 4,766
Deferred rent 26,162 24,768

Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value; 400,000,000
shares authorized, 27,791,900 shares issued
and outstanding at
June 26, 2010, and 400,000,000 shares
authorized, 26,750,423 shares issued and
outstanding at December 26, 2009 278 268
Additional paid-in capital 228,281 210,359
Accumulated other comprehensive loss (251) (882)
Retained earnings 40,641 24,606
------ ------
Total stockholders' equity 268,949 234,351
------- -------
Total liabilities and stockholders' equity $477,589 $469,257
======== ========

SOURCE Vitamin Shoppe, Inc.

Subject Codes: PC/t.100722073002025, PT/lang.en, PC/ticker, IN/REA,
IN/SPM, IN/HOU, SU/ERN, SU/CCA, SU/ERP, RE/New_Jersey,
PC/priority.r, PC/category.f, PC/class.1278,
PC/class.1046, PC/WAVO_j....., PC/APT_j...., PC/state_j,
PC/wavo1_j, PC/class.1255, PC/WAVO_....r., PC/APT_....r,
PC/trade_r, PC/wavo5_r, PC/class.1000, PC/WAVO_..b...,
PC/APT_..b.., PC/circuit_b, PC/wavo3_b,
PC/DataFeat_natl3, PC/port_32, PC/Billing_FC1,
PC/Billing_IRW, PC/Billing_RWB, PC/Billing_TNW,
PC/Billing_US1, PC/1stAcc_935776, PC/bureau_NY,
PC/port_01, PC/port_96, PC/port_31, PC/port_33,
PC/port_19, PC/port_91, PC/contact, PC/website,
PC/id_NY38806

Company Codes: NYSE:VSI