Cabela's Inc. Reports Record First Quarter 2012 Results

Cabela's Incorporated (NYSE:CAB) today reported record financial results for first quarter fiscal 2012.

For the quarter, total revenue increased 6.3% to $623.5 million; Retail store revenue increased 14.4% to $345.3 million; Direct revenue decreased 8.3% to $190.2 million; and Financial Services revenue increased 15.3% to $83.5 million. For the quarter, comparable store sales increased 4.2%. Net income increased 62% to $28.8 million compared to $17.8 million in the year ago quarter, and earnings per diluted share were $0.40 compared to $0.25 in the year ago quarter.

"This strong performance gives us confidence our growth strategy is working and working well," said Tommy Millner, Cabela's Chief Executive Officer. "Virtually all the lines on the income statement are moving in the right direction: revenue is up, merchandise margin increased, expenses as a percentage of revenue are down, earnings are up and after-tax return on invested capital rose nicely."

"Merchandise margin increased 150 basis points in the quarter, primarily due to continued improvements in pre-season planning, in-season management and the performance of Cabela's branded product," Millner said. "Increases in merchandise margin were broad based as margin increased in 10 of 13 merchandise sub-categories and improved in both our Direct and Retail segments. These improvements combined with greater vendor collaboration allowed us to avoid significant end of season markdowns as we transitioned from fall to spring merchandise. We are confident that our initiatives to increase merchandise margin will continue to generate positive improvements through the remainder of 2012 and beyond."

"In addition to merchandise margin improvements, we realized acceleration in total revenue growth and comparable store sales," Millner said. "Comparable store sales increased 4.2%, which is especially pleasing given that we were up against an 8.9% comparable store sales increase in the first quarter last year. In our retail stores, demand for firearms, ammunition and fishing equipment was very strong."

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