Oct. 31, 2013..According to Michael C. MacDonald, Medifast's Chairman and CEO: "The consumer environment proved challenging for us in the quarter, and while we believe this will continue to impact our revenue in the fourth quarter, we anticipate full year revenue growth for 2013. Our team is optimistic we will return to stronger revenue growth in 2014 by implementing new strategic initiatives to attract and retain customers through our Take Shape for Life, Medifast Direct, Medifast Weight Control Centers, and Wholesale Physicians sales channels."
For the third quarter ended Sept. 30, 2013, Medifast net revenue fell 5% to $86.5 million from net revenue of $91.0 million in the third quarter of 2012.
Revenue in the direct sales channel, Take Shape for Life, increased 1% to $56.2 million in the third quarter, compared to $55.6 million in the same period last year.
Medifast Direct channel revenue decreased 19% to $17.1 million, compared to $21.2 million in the third quarter of 2012.
Medifast Weight Control Centers and Wholesale Physicians channel revenue decreased 7% to $13.2 million.
Gross profit for the third quarter of 2013 decreased 5% to $64.9 million, compared to $68.3 million in the third quarter of the prior year.
For fiscal year 2013, the company expects net revenue in the range of $360 million to $365 million and narrowed its earnings per share guidance to $1.70 to 1.75. Revenues last year were $357 million, so this is basically zero growth for 2013.