Cabela’s announces Q4 and full year 2016 results
Cabela’s Incorporated (NYSE:CAB) reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2016. As previously disclosed, the company’s fourth fiscal quarter and fiscal year ended Dec. 31, 2016, included 13 weeks and 52 weeks, respectively, while its fourth fiscal quarter and fiscal year ended Jan. 2, 2016, included 14 weeks and 53 weeks, respectively.
For the quarter, on a GAAP basis, total revenue decreased 4.9 percent to $1.3 billion, revenue from retail store sales decreased 4.3 percent to $888.2 million, internet and catalog sales decreased 12.4 percent to $307.8 million, and financial services revenue increased 1.2 percent to $132.7 million. For the quarter, adjusted for the shift in weeks, U.S. comparable store sales decreased 6.4 percent and consolidated comparable store sales decreased 6.5 percent. Adjusted for the 53rd week in the fourth quarter of 2015, total revenue increased 1.0 percent, retail store sales increased 4.9 percent, and Internet and catalog sales decreased 4.7 percent. See the supporting schedules to this earnings release labeled “Revenue in Fiscal Year 2016 (52 Weeks) Compared to Fiscal Year 2015 (53 Weeks)” for a reconciliation of the GAAP to non-GAAP financial measures.
For the quarter, net income decreased 26.3 percent to $58.1 million compared to $78.8 million in the year ago quarter, and earnings per diluted share were $0.84 compared to $1.14 in the year ago quarter. Adjusted for certain items, the company reported fourth quarter net income of $72.5 million and earnings per diluted share of $1.05 as compared to net income of $86.8 million and earnings per diluted share of $1.26 in the year ago quarter. Fourth quarter 2016 GAAP results included impairment and restructuring charges and other items totaling a $0.21 reduction in earnings per diluted share.
“We were clearly disappointed with the fourth quarter results,” said Tommy Millner, Cabela’s chief executive officer. “Consistent with other retailers, we experienced challenging traffic patterns in the quarter. Our increase in average ticket was not enough to make up for a decrease in transactions. Similar to industry trends, we experienced strength in firearms and shooting-related categories primarily early in the quarter. Later in the quarter, firearms and shooting-related categories became challenging as we faced the headwind of lapping the impact that the San Bernardino tragedy had on these categories a year ago. We saw improved trends in apparel and other softgoods categories in the latter part of the quarter. We continue to be pleased with the performance and growth of our Cabela’s CLUB Visa program.”
For the quarter, consolidated comparable store sales decreased 6.5 percent and U.S. comparable store sales decreased 6.4 percent as compared to the same quarter a year ago. Comparable store sales strength in firearms and shooting-related categories through the first half of the quarter was more than offset by softness in these categories due to challenging comparisons from the year ago period.
As a reminder, Cabela’s will not host a conference call with analysts and investors or provide guidance in connection with the results and does not plan to do so for future quarters while the acquisition of the company by Bass Pro Shops is pending.
