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This article was originally published in The Tan Sheet

Executive Summary

Anticipates sales slowdown in the fourth quarter to $85 mil.-$90 mil., compared to $71.8 mil. in the year-ago period, the Ronkonkoma, N.Y.-based firm announces Dec. 1. Net income is expected to reach $8 mil.-$9 mil. in the quarter. Firm cites excess inventory from large purchase orders in the first half and "generally slower growth" of the supplement industry at retail. GNC's new pricing policy also may be contributing to the overall industry falloff; the manufacturer/ retailer implemented a strategy of discounting a rotating selection of products each month in response to mass and discount outlet competition ("The Tan Sheet" Aug. 10, p. 9). Also affecting Twinlab's results was a delay in the rollout of its new TruHerbs line because of packaging problems. The 45-SKU line was slated to launch in mass market outlets in late September ("The Tan Sheet" Aug. 10, p. 10). "These issues are expected to continue into 1999," Twinlab says, predicting flat first quarter sales and income. Twinlab full-year sales are projected to reach $338.4 mil., up 47.4%, on net income of $37.1 mil., up 50.8%

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