Cabela's Shares Fall On Weak Credit-card Business

NEW YORK (AP) — Shares of Cabela's Inc. fell on Monday after the retailer of hunting and fishing gear said in a filing with the Securities and Exchange Commission that its credit card business' gross charge-offs rose in July.

Gross charge-offs — accounts receivable that will likely not be collected and be written off — rose to 4.62 percent from 2.9 percent in July of last year, according to the filing.

"These credit metrics are increasingly important to monitor given their sensitivity to the weak consumer environment and the significant contribution of Cabela's credit card business to overall profitability," wrote Credit Suisse analyst Paul Lejuez in a note to investors.

He reiterated his "underperform" rating on the stock.

"The credit card business is still deteriorating and we expect this to cause continued pressure on overall results," he wrote.

Sidney, Neb.-based based Cabela's shares fell 75 cents, or 4.8 percent, to $14.85 in afternoon trading. The stock has traded between $4.18 and $17.73 during the past 52 weeks.