) earnings for first-quarter 2013 came in at 70 cents a share,
handily surpassing the Zacks Consensus Estimate of 59 cents and
surging 75% year over year.
A significant rise in comparable-store sales, strong
performance by the company's new next-generation stores and
growth at its CLUB Visa program facilitated Cabela's
to come up with the stronger-than-anticipated results.
Total revenue comprising retail, direct and financial services
revenues, jumped 28.7% year over year to $802.5 million and
surpassed the Zacks Consensus Estimate of $779 million.
Quarter in Detail
Total merchandise revenues, including retail and direct
revenues, escalated 33% to $711.7 million during the quarter on
account of strong sales of firearms and ammunition. Merchandise
margins expanded 110 basis points to 35.6%, reflecting increased
sales of higher margin products like soft goods and footwear.
Cabela's posted retail store revenues of $486.7 million, up
41% year over year. Strong performance at the company's new
next-generation stores and strategic merchandise and inventory
planning facilitated it to register a 24% increase in
comparable-store sales. The company marked a 10% increase in
average ticket, while retail transactions jumped 14%. Retail
profitabilty remained strong, expanding 460 basis points to 17.4%
on account of higher merchandise margin and reduced expenses.
Direct business revenues escalated 18.4% year over year to
$225.2 million, reflecting higher traffic at its .com business
and a 6% rise in average order size.Direct operating margin
expanded 190 basis points to 19.9%.
Financial services revenue augmented 2.8% to $85.8 million.
Credit card charge-offs as a percentage of average credit card
loans for the quarter rose 14 basis points to 1.86%. The
improvement in charge-offs was observed on the back of solid
growth in active credit card accounts and improved delinquencies.
Other revenues increased 6.5% year over year to $4.8 million.
Total operating income jumped 69.9% to $79.1 million compared
with $46.6 million in the prior-year quarter, whereas adjusted
operating margin expanded 240 basis points to 9.9%.
Other Financial Aspects
The company ended the quarter with cash and cash equivalents
of $363.7 million, long-term debt of $319.9 million and
shareholders' equity of $1,428.6 million.
Cabela's generated $123 million in cash flow from operations
and incurred capital expenditures of $65 million during the
quarter. For 2013, management anticipates to incurr capital
expenditures in the range of $300 million - $325 million,
attributable to its store expansion plans. The company
repurchased 72,200 shares during the quarter.
Boasting a sturdy balance sheet, feasible strategy and
operating efficiencies, Cabela's offers its investors one of the
strongest growth profiles. The company registered a 210 basis
points rise in return on invested capital while remaining on
course to increase it further in the coming quarters.
Cabela's next-generation store format, multi-channel strategy
and seasonal product assortments enable it to focus on boosting
store productivity and sales per square foot while lowering its
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.
Cabela's also announced the opening of 2 more next-generation
stores in 2014, one each in Edmonton, Canada and Tualatin, Ore.
Cabela's announced the opening of 6 domestic next-generation
stores. Moreover, the company plans to further increase it by 2.
It plans to open 2 additional stores in Canada, besides the
earlier announced Edmonton store. It also plans to open 3 new
Outpost stores in 2014.
Cabela's CLUB Visa program continues to register strong
growth, reflecting rise in average active accounts with
improvement in delinquencies and net charge-offs along with lower
Consequently, Cabela's carries a favorable Zacks Rank #1
Other Stocks to Consider
Beside Cabela's, other stocks worth considering in the
non-food retail, wholesale sector include
Sears Holdings Corporation (
Big 5 Sporting Goods Corp
), all of which hold a Zacks Rank #1 (Strong Buy) and are
expected to continue with their upbeat performance.
BIG 5 SPORTING (BGFV): Free Stock Analysis
CABELAS INC (CAB): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
SEARS HLDG CP (SHLD): Free Stock Analysis
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