Cabela's reports increase in 3Q income
SIDNEY, Neb. Cabela’s reported that for the third quarter, net income increased 5% to $19.7 million, or 29 cents per diluted share, compared with $18.8 million, or 28 cents per diluted share, in the third quarter of 2009.
"We are focusing on improving merchandise gross margins, expanding retail operating margins and improving return on invested capital,” said Tommy Millner, Cabela’s CEO. “In the third quarter, we were very pleased with the significant improvements in merchandise gross margins and retail operating margins, while managing working capital, which led to a 90 basis points improvement in return on invested ."
“We believe the improvements in our business are sustainable,” Millner said. “As a result of the progress we have made on our strategic initiatives and the strength of our business in the third quarter, we expect our full year 2010 earnings to meet or exceed current expectations. Furthermore, we expect earnings for 2011 to grow at a double digit rate.”