Cabela’s announces Q1 earnings, two new stores

Cabela’s Inc. on Thrusday reported financial results for first quarter fiscal 2016.

For the quarter, total revenue increased 4.5 percent to $864.7 million; revenue from retail store sales increased 7.6 percent to $564.1 million; Internet and catalog sales decreased 10.2 percent to $155.7 million; and financial services revenue increased 14.6 percent to $140.8 million. During the period, adjusted for the shift in weeks, U.S. comparable store sales decreased 3.8 percent and consolidated comparable store sales decreased 4.3 percent.

For the quarter, adjusted for certain items, net income increased 7.3 percent to $29.5 million compared to $27.5 million in the year ago quarter, and earnings per diluted share were $0.43 compared to $0.38 in the year ago quarter. The Company reported GAAP net income of $22.9 million and earnings per diluted share of $0.33 as compared to GAAP net income of $26.8 million and earnings per diluted share of $0.37 in the year ago quarter. First quarter 2016 GAAP results included impairment and restructuring charges and other items totaling $0.06 in earnings per diluted share as well as $0.04 in earnings per diluted share related to the preliminary settlement of a legal matter. See the supporting schedules to this earnings release labeled “Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures” for a reconciliation of the GAAP to non-GAAP financial measures.

“Revenue trends we experienced in the fourth quarter of 2015 continued into the first quarter of 2016,” said Tommy Millner, Cabela’s CEO. “However, our intensified focus on expense management and the performance of our Cabela’s CLUB program led to adjusted operating margin expansion, adjusted earnings per share growth and adjusted SD&A leverage, all compared to the year ago quarter. We have a number of initiatives to increase organic growth for the remainder of the year. These include expanded drop ship programs, retail inventory visibility on cabelas.com, merchandise realignment in selected stores, in-store customer service improvements and numerous other initiatives.”

On December 2, 2015, the company announced that its board of directors was initiating a process to “explore and evaluate a wide range of strategic alternatives to enhance value for the Company’s shareholders.” That process has continued and is ongoing, the company said Thursday.

Cabela’s also announced Thursday plans to open two new stores in McDonough, Ga., and Lee’s Summit, Mo.

McDonough

The 70,000-square-foot location is expected to begin construction this year and Cabela’s anticipates a fall 2017 opening. The store will be located off Exit 222 of Interstate 75 near the intersection of Jodeco in the newly proposed Jodeco Atlanta South development in Henry County.

“Georgia is a great place for the outdoors and has been a great place for Cabela’s recent retail expansion,” Millner said. “We are positive this new location will receive tremendous support from outdoor enthusiasts throughout central Georgia while also providing a second convenient location for the greater Atlanta area.”

Upon opening, it will become Cabela’s fourth location in Georgia, joining the Augusta, Acworth and Fort Oglethorpe stores. Cabela’s expects to employ approximately 130 full-time, part-time and seasonal employees at the store, most of whom would come from the surrounding area.

Lee’s Summit

The 70,000-square-foot location is expected to begin construction this year and the company anticipates either a fall 2017 or spring 2018 opening. The store will be located near the intersection of U.S. Highway 50 and Interstate 470 near JC Penney, Macy’s, Lowe’s and Super Target.

“We are very excited to open a second location in the Kansas City area,” Millner said. “This is a fantastic place for the outdoors and has been a fantastic place for Cabela’s, as evidenced by our existing Kansas City store as well as our online and catalog businesses. This new location will allow us to strengthen our service and commitment to customers in the surrounding area.”

Cabela’s expects to employ approximately 150 full-time, part-time and seasonal employees at the store, most of whom would come from the surrounding area. Upon opening, it will become Cabela’s second location in the Kansas City market, joining the Kansas City, Kan., store opened in 2002. Additionally, it will be the company’s second Missouri location, joining the Hazelwood store opened in 2007.