Cabela’s Incorporated reported financial results for third quarter fiscal 2016 on Wednesday, accelerating the timing of its earnings press release so that it could provide financial information to certain third parties in connection with the pending acquisition of the company by Bass Pro Shops.
For the quarter, total revenue increased 7.6 percent to $996.5 million; revenue from retail store sales increased 8.1 percent to $688.6 million; Internet and catalog sales increased 3.6 percent to $167.4 million; and Financial Services revenue increased 8.8 percent to $134.5 million. During the period, adjusted for the shift in weeks, U.S. comparable store sales decreased 1.8 percent and consolidated comparable store sales decreased 2.3 percent.
For the quarter, net income decreased 35.4 percent to $28.2 million compared to $43.7 million in the year ago quarter, and earnings per diluted share were $0.41 compared to $0.62 in the year ago quarter. Adjusted for certain items, the Company reported third quarter net income of $36.8 million and earnings per diluted share of $0.53 as compared to net income of $50.3 million and earnings per diluted share of $0.71 in the year ago quarter. Third quarter 2016 GAAP results included impairment and restructuring charges and other items totaling a $0.12 reduction in earnings per diluted share.
“During the third quarter, we successfully drove sales growth in several of our key merchandise categories through an aggressive promotional and markdown cadence; however, these promotional activities also resulted in a decrease in merchandise gross margins and were the primary contributor to the profitability shortfall,” said Tommy Millner, Cabela’s CEO. “Importantly, we saw the success of a variety of expense leverage efforts, and we continue to be excited about the Company’s announcement of our combination with Bass Pro Shops, which is expected to be completed in the first half of 2017.”
Read the full earnings release here.