Cabela's Revenues Up 12%, But Net Is Flat

Cabela's total 3Q revenue increased 12.0% to another record for the chain of $429.8 million. 3Q net income was $16.3 million, or 25¢ per diluted share, compared to $16.5 million, or 25¢ per diluted share, for the same period a year ago. Net income was negativelyaffected by the timing of promotional events, additional store pre-opening expenses and increased fuel prices.

During 3Q05, direct revenue was similar to last year at $220.2 million. Total retail revenue increased 23.1% to $173.0 million and same-store sales decreased 8.7%. Financial services revenue increased 46.0% to $32.5 5 million.

Dennis Highby, CEO, commented, "As we previously announced, our third quarter revenues were primarily impacted by higher fuel prices and the recent hurricanes, both of which affected our consumers' buying patterns. Despite the challenging retail environment, we are confident that we will have modest growth in net income in the fourth quarter. This represents a change from our previous annual guidance.

"During the quarter, we announced plans for three new destination retail locations, including Richfield, WI (near Milwaukee), and La Vista, NNE (near Omaha), both expected to open in '06, as well as East Hartford, CT, which is expected to open in '07. We look forward to bringing the Cabela's experience to New England, while at the same time further building our presence in the Midwest."