Same-store sales, income down for Cabela’s in 2015
Cabela’s Incorporated reported lower sales for 2015, but did increase revenue in the fourth quarter, the company announced Thursday.
(See the full earnings announcement here.)
For fiscal 2015, which ended January 2, net income was $204.7 million compared to $207.1 million last year, and earnings per diluted share were $2.88 compared to $2.88 a year ago, each adjusted for certain items. Cabela’s reported GAAP net income of $189.3 million and earnings per diluted share of $2.67 as compared to GAAP net income of $201.7 million and earnings per diluted share of $2.81 a year ago. Fiscal 2015 GAAP results included impairment and restructuring charges and other items of $0.21 in earnings per diluted share.
“During the second half of 2015, we deepened our focus on profitable growth, expense leverage, and better balance sheet utilization,” said Tommy Millner, Cabela’s Chief Executive Officer. “In the fourth quarter, we were excited to see the early results of these initiatives. Specifically, we outperformed external estimates for revenue, expenses, and earnings per share.”
“U.S. comparable store sales were down 3.5 percent,” Millner said. “Consolidated comparable store sales were down 4.9% for the quarter. In both the United States and Canada, weather impacted fall and winter apparel and footwear products. We were encouraged by positive comp performance in many of our core categories, including camping, powersports, home and gifts, firearms, and ammunition.”
For the quarter, total revenue increased 10.5 percent to $1.4 billion; retail store revenue increased 14.3 percent to $926.5 million; direct revenue increased 0.5 percent to $351.5 million; and financial services revenue increased 15.7 percent to $131.1 million.
For the quarter, adjusted for certain items, net income increased 9.5 percent to $86.8 million compared to $79.3 million in the year ago quarter, and earnings per diluted share were $1.26 compared to $1.11 in the year ago quarter. The Company reported GAAP net income of $78.8 million and earnings per diluted share of $1.14 as compared to GAAP net income of $78.6 million and earnings per diluted share of $1.10 in the year ago quarter. Fourth quarter 2015 GAAP results included impairment and restructuring charges and other items of $0.12 in earnings per diluted share.
“We clearly faced a challenging environment in the fourth quarter,” Millner said. “However, we were able to drive better than anticipated merchandise revenue as the result of several initiatives, including expanded drop ship programs, retail inventory visibility online, and a focus on key merchandise categories. We are confident that a continued focus on key merchandise categories as well as new initiatives, such as optimization of store formats and digital and mobile leadership, will continue to drive merchandise revenue performance.”
In December, Cabela’s announced it was exploring “strategic alternatives” for the future of the company, including a potential sale. That process is ongoing, the company said Thursday.
