) shot up by 13% to reach a new 52-week high of $60.98 on
Tuesday, Mar 12, gaining momentum from the company's raised
guidance ahead of its annual analyst/investor meeting.
This Zacks Rank #2 (Buy) leading specialty retailer of
hunting, fishing, camping, and outdoor related merchandise,
eventually closed at $60.65, recording a strong year to date
return of 41.6%.
Cabela's stated that it now expects first quarter 2013
comparable-store sales to rise in the high-teens rate. Moreover,
the company now expects direct revenue to increase in a low to
mid-teens rate, which is a big positive.
The company's direct business has long been grappling with
declining revenue trends. In 2012, direct revenue declined 2.7%
year over year to $930.9 million while operating margin
contracted 130 basis points to 16.7%. However, in the fourth
quarter of 2012, direct revenue improved by 1.7% year over year
to $385.5 million but operating margin declined 200 basis points
Going forward, Cabela's now projects its earnings per share to
surpass the Street expectations by 10 cents to 15 cents.
Boasting a sturdy balance sheet, feasible strategy and
operating efficiencies, Cabela's offers its investors one of the
strongest growth profiles. Cabela's next-generation store format,
multi-channel strategy and seasonal product assortments enable it
to focus on boosting stores productivity and sales per square
foot while lowering its labor costs.
In addition, the company aims to capitalize on the
under-penetrated markets and unveiled its new 'Outpost' store
format. The relatively smaller size store will provide shoppers
with Cabela's retail experience.
The company remains on track to open 6 domestic
next-generation stores, 1 Canadian next-generation store and 3
Outpost sores in 2013. In 2014, the company plans to open 8
Further, Cabela's CLUB Visa program continues to register
strong growth, reflecting rise in average active accounts with
improvements in delinquencies and net charge-offs along with
lower funding cost.
Other Stocks to Consider
Beside Cabela's, other stocks worth considering in the
non-food retail, wholesale sector include
Big 5 Sporting Goods Corp.
), both of which hold a Zacks Rank #1 (Strong Buy) and are
expected to continue with the upbeat performance.
Hot Topic Inc.
) carrying a Zacks Rank #2 (Buy) is also worth considering.
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