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Cabela's (CAB) Leaves No Stone Unturned to Woo Investors

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Cabela's IncorporatedCAB is leaving no stone unturned to woo investors. This is evident from the company's shareholder-friendly moves and strategic endeavors to bring itself back on the growth trajectory.

Recently, the company's board of directors approved a new $500 million share repurchase program. This repurchase initiative is separate from the previous share buyback program authorized in April, per which the company has already repurchased 2 million shares via open market operations.

Prior to the above announcement, the company has been busy restructuring its management. In August, the company announced that it has removed Brian J. Linneman from the position of Executive Vice President and Chief Merchandising Officer and handed him the responsibilities of strategic advisor. This leading specialty retailer further announced its decision to promote Scott K. Williams to the post of Executive Vice President and Chief Commercial Officer.

Moreover, Cabela's appointed Peter S. Swinburn in its board of directors. Swinburn, who has 40 years of experience, was the former Chief Executive Officer and President of Molson Coors Brewing Company TAP .

It is noteworthy that both the initiatives were undertaken after the company posted its second-quarter 2015 results, which were below expectations. Analysts are looking at these measures as an effort on the part of the company to instill investors' confidence in the stock.

Further, in spite of a soft second quarter, management remains confident of the company's performance in the second half of 2015, based on solid results witnessed in most merchandise categories, sequential improvement in comps, expected stability in merchandise margin, and cost-containment efforts.

Consequently, this Zacks Rank #2 (Buy) company reiterated its sales and earnings guidance for 2015. Cabela's still anticipates revenues to improve at a low double-digit rate, while it envisions earnings per share to grow in a high single-digit to low double-digit range.

Other Stocks to Consider

A couple of favorably placed stocks in the same industry are Build-A-Bear Workshop Inc. BBW and KAR Auction Services, Inc. KAR . While Build-A-Bear Workshop carries a Zacks Rank #1 (Strong Buy), KAR Auction Services holds a Zacks Rank #2.

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CABELAS INC (CAB): Free Stock Analysis Report

MOLSON COORS-B (TAP): Free Stock Analysis Report

KAR AUCTION SVC (KAR): Free Stock Analysis Report

BUILD-A-BEAR WK (BBW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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