For the quarter, merchandise gross margin improved 10 basis points to 37.3% compared to the prior year quarter. Merchandise mix declines from ammunition sales were more than offset by margin improvement due to the elimination of free shipping to CLUB members and increased penetration of Cabela's brand merchandise."Starting in August, we saw a significant deceleration in the sales of firearms and ammunition as well as a challenging consumer environment across all business channels," Millner said. "To compensate, we increased marketing and advertising spending by several million dollars. In addition, we took an aggressive approach to managing other costs to levels consistent with how our business performed and will continue to manage those costs accordingly through the rest of the year."
Cabela's Inc. Reports Record Third Quarter 2013 Results
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