Cabela’s beats Street with 68.7% profit surge in Q3
SIDNEY, Neb. — Outdoor retailer Cabela’s reported Thursday that profit for the third quarter surged 68.7% to $33.3 million, compared with $19.7 million in the year-ago period. Results surpassed analysts’ expectations and mark the third straight quarter of profit rises.
According to Cabela's, the improved results were due to better in-stock levels, higher average order size, increase in customer conversion and early stage successes in mobile and social marketing.
“Our new next-generation stores continue to perform extremely well, thus increasing our confidence to accelerate future retail expansion in the United States and Canada,” said Tommy Millner, Cabela’s CEO.
Though Cabela's profit beat expectations, its revenue increase of 6% to $678.6 million missed Wall Street’s expected $681.5 million, and comparable-store sales were down 1.6%.
Millner noted the company plans to accelerate retail expansion in the United States and Canada in 2013, increasing its retail square footage by approximately 10% in both 2012 and 2013.