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Vitamin Shoppe, Inc. (VSI - Free Report) continues to post excellent results. The company has topped forecasts in each quarter since its 2009 IPO, recently increasing net income 3 fold.

Thanks to an optimistic and aggressive growth forecasts, analysts continue to raise estimates for this Zacks #1 Rank (Strong Buy).

Company Description

Vitamin Shoppe is a specialty retailer for vitamins, supplements, herbs, sports nutrition and other health and beauty products. The company owns 472 stores and also sells through its mail-order catalog and website.

Net Income More than Triples

On Oct 27 Vitamin Shoppe reported third-quarter results that showed a 7.1% same-store sales. Net sales were up 11.3%, to $187 million, after the company opened 9 new locations during the quarter.

Net income for the period was up 256%, to $7.2 million. Earnings per shares came in at 27 cents, which was 3 cents better than the Zacks Consensus Estimate. The company has beaten expectations in each quarter since its 2009 IPO.

Optimistic Outlook

Vitamin Shoppe expects to open about 48 new stores in 2011 and improve same-store sales by another 4-5%. The company expects to lower interest expenses as it spends cash to pay down debt.

Net income is projected to grow by 25%.

Estimates Keep Climbing

Analysts raised full-year projections for this year and next year. The Zacks Consensus Estimate for 2010 is up 5 cents, to $1.08. Next year's forecasts are up 6 cents, to $1.37. If these targets are met the annual growth rates will be 185% this year and another 27% in 2011.

The Chart

Shares of VSI have been volatile since they first hit the exchange, but over the long run the reward has been worth the risk. Given the excellent growth outlook, there should be plenty of room for this trend to continue.

Vitamin Shoppe, Inc. - ticker VSI >

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the market-beating Zacks Small Cap Trader service

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