Baird Conferencefilecache.investorroom.com/mr5ir_vitaminshoppe/325...Driving profitable online sales...

Baird Conference Sharon Leite, Chief Executive Officer

Safe Harbor Statement

This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements in this presentationthat do not constitute historical facts, including, without limitation, statements regarding introduction of new product offerings,expense savings, store growth, revenue and other statements that are predictive in nature or depend upon or refer to events orconditions or that include words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,”“seeks,” “approximately,” “predicts,” “intends,” “plans,” “believes,” “estimates”, “targets” or “could”, are “forward-looking”statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties, many of which are outside our control, including, amongothers, including the strength of the economy, changes in the overall level of consumer spending, the performance of theCompany's products within the prevailing retail environment, implementation of our strategy, trade restrictions, availability ofsuitable store locations at appropriate terms, the availability of raw materials, compliance with regulations, certifications andbest practices with respect to the development, manufacture, sales and marketing of the company’s products and other specificfactors discussed here and in other releases and public filings made by the company (including Vitamin Shoppe’s reports onForms 10-K and 10-Q filed with the Securities and Exchange Commission). Vitamin Shoppe believes that all forward-lookingstatements are based on reasonable assumptions when made; however, we caution that it is impossible to predict actual resultsor outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes and that, accordingly, oneshould not place undue reliance on these statements. Forward-looking statements speak only as of the date they were made,and we undertake no obligation to update these statements in light of subsequent events or developments. Actual results maydiffer materially from anticipated results or outcomes discussed in any forward-looking statement. Please refer to theCompany’s annual reports filed on Form 10-K and other filings with the Securities and Exchange Commission as well as recentpress releases. These filings can be accessed over the Internet at www.vitaminshoppe.com in the Investor Relations section.

http://www.vitaminshoppe.com/

Since opening its doors in 1977, The Vitamin Shoppe® has been dedicated to helping our customers

achieve their wellness goals.

We’re so much more than a place to buy vitamins. Moving forward, we will become the authority for a wide-range of quality and trustworthy products

and services. Everything we do will be created with genuine care and heart for our customers

and community.

We are at a critical inflection point in our evolution…

2018

Reinvention

2009- 2010

Post-IPO Phase

2011 - 2013

High Growth Phase

2014 - 2017

Transition Phase

Fastest growing retailer in the

VMS industry

15 consecutive years of positive

comparable store sales growth

Never closed a store due to

performance

Specialty supplement and sports

nutrition businesses outpaced

industry trends

#1 vitamin store based on

customer satisfaction

Growing U.S. store base by

~10% per year including the

addition of small-market

prototypes

Driving profitable online sales

Building successful product

innovation platform

Pursuing international activities

Continued store expansion focus

Improvement needed in key

categories such as sports nutrition

and weight management

Acquired Nutri-Force in 2014; mixed

results have impacted earnings

CEO announced retirement in

September 2014; new CEO joined in

April 2015 and exited in 2018

Industry pivoting to focus on health

and wellness needs

In the face of increased online / mass competition and the acceleration of sports-oriented category decline, The Vitamin Shoppe has:

▪ Hired Sharon Leite as CEO in the Fall of 2018

Transforming the merchandising, marketing, digital and ecommerce organizations

Created a successful auto delivery business

Piloting a revamped Loyalty program

Reduced debt by ~60%

Reduced inventory 15%

Sold the NutriForce manufacturing business

Closed and is closing unproductive stores

Deliver

operational

efficiency

Reduce

enterprise

costDrive

& build

the business

Strategic enterprise themes will generate long-term shareholder value

We create engaging ways to connect to our customers

We constantly develop new and proprietary products that are aligned to trends and

advancements in knowledge

We pursue opportunities outside of our stores to bring our product to market

Our brand pillarsThe Vitamin Shoppe’s mission is to help our customers be

their best selves, however they define it. We fulfill this promise and differentiate ourselves through:

We are authentic and trustworthy. We challenge

ourselves to exceed industry standards for quality. Our seal lets our customer know that they can be confident in the products they buy from us,

every time.

Quality

We are constantly developing new and

proprietary products that are aligned to current trends,

needs, and advancements.

Innovation

We offer encouragement and inspiring solutions with

unsurpassed knowledge and expertise.

Expertise

SuperPremium

Best

MuscleBuilding

Weight Management

Vitamins & Minerals

SpecialtySupplements

Plant-BasedNutritionPerformance Digestive

Sports & Fitness Holistic Health & Wellness

Better(National Brand

Equivalent)

(Coming Soon!)

New label and package designs

BEFORE

NEW – BEST Tier Brand

An omni-channel approach putting the customer

at the center of all we do

We offer encouragement and inspiring solutions with

unsurpassed knowledge and expertise.

We’ll be dispensing the ultimate in personalization

Revitalization for our store strategy…

Our real estate and store portfolio strategy is to balance our growth goals with short-term and long-term profitability obligations.

The desired outcome is a national portfolio with high strategic value and predictable profitability.

New Real Estate Strategy and Store Design

We are pursuing opportunities outside

of traditional retail channels…

Wholesale

International

Deliver

operational

efficiency

Reduce

enterprise

costDrive

& build

the business

Strategic enterprise themes will generate long-term shareholder value

An experienced executive leadership team assembled to drive growth

The Vitamin Shoppe has assembled a talented and experienced team to transform the Company through its Long-Range Plan

Name Years at VSI Prior ExperiencePosition

David Kastin SVP, General Counsel & Corporate Secretary

4 20+ years of counsel experience

Teresa Orth SVP, Human Resources 625+ years in human resources for retail companies

EVP, Chief Technology Officer 125+ years in digital, technology and supply chain Andy Laudato

Neal PanzaSVP, Retail Sales and

Operations1

25+ years in sales, operationsand leading large teams

Stacey RenfroEVP, Chief Digital & Customer

Experience Officer 120+years in digital, e-commerce, marketing and merchandising

Alex Smith Chairman 3

40+ years in retail strategy, merchandising, marketing, operations and leading turnarounds

Sharon Leite Chief Executive Officer 125+ years in retail strategy, sales, operations, digital and turnarounds

Chuck Knight Interim Chief Financial Officer 1 25+ years in finance, and business transformation

Camille Fratanduono

Lisa Harnisch

Tom Merrihew

25+ years in retail, e-comm, merchandising , planning, business transformation

VP, General Merchandise Manager

1

VP, General Manager Private Brands

VP, General Manager Merchandise Operations

135+ years in omni-channel retail & wholesale merchandising and merchandising operations

320+ years of retail merchandising, operations and omni-channel planning

Ted Vasquez VP, General Manager of New Business Development and Strategic Planning

220+ years in Strategic Development and general management

Thank you

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