SIDNEY, Neb. – Cabela’s Incorporated (NYSE:CAB) today reported financial results for first quarter fiscal 2015.
For the quarter, total revenue increased 14 percent to $827.1 million; retail store revenue increased 18.9 percent to $524.4 million; direct revenue decreased 3.3 percent to $173.5 million; and financial services revenue increased 24.7 percent to $122.9 million. During the period, consolidated comparable store sales decreased 1.3 percent.
For the quarter, adjusted for certain items, net income increased 6.9 percent to $27.5 million compared to $25.7 million in the year ago quarter, and earnings per diluted share were $0.38 compared to $0.36 in the year ago quarter. The company reported GAAP net income of $26.8 million and earnings per diluted share of $0.37 as compared to GAAP net income of $25.7 million and earnings per diluted share of $0.36in the year ago quarter. First quarter 2015 GAAP results include incremental expenses related to the relocation of Cabela’s distribution center in Winnipeg, Manitoba, of $0.01 per diluted share. See the supporting schedules to the earnings release labeled “Reconciliation of GAAP Reported to Non-GAAP Adjusted Financial Measures” for a reconciliation of the GAAP to non-GAAP financial measures.
“We have started the year well and are pleased that the extreme volatility in firearms and ammunition over the past two years seems to have normalized,” said Tommy Millner, Cabela’s chief executive officer. “We experienced strong growth in merchandise sales, sequential improvement in comparable store sales and excellent performance from Cabela’s CLUB and our new format stores. We were particularly pleased with the continued improvement in comparable store sales as hunting equipment, optics, camping, fishing, shooting and powersports all comped positively in the quarter.”
“Our new format stores continue to significantly outperform our legacy stores in sales and profit per square foot,” Millner said. “As our business grows, we are excited as we accelerate the pace of our new store openings. During the first quarter, we opened two new stores and plan to open a total of five stores in the second quarter, four stores in the third quarter and two stores in the fourth quarter.”
U.S. comparable store sales decreased 0.4 percent. Consolidated comparable store sales decreased 1.3 percent largely due to currency declines in Canada. U.S. comparable store sales increased in six of thirteen merchandise subcategories and benefited from a 2.2 percent increase in average ticket.
Direct revenue decreased 3.3 percent in the quarter, representing the fourth quarter of sequential improvement. Particularly strong performance in women’s and children’s apparel, optics, home and gifts, as well as powersports all contributed to the sequential improvement in direct revenue.