We are cautiously optimistic for 2010 - Cabela's CEO
Cabela's Incorporated reported financial results for its fourth fiscal quarter and fiscal year ended January 2, 2010. Like most retailers, Cabela's periodically has an additional week in its fiscal year. As such, the Company's fourth fiscal quarter and fiscal year ended January 2, 2010, included 14 weeks and 53 weeks, respectively, while its fourth fiscal quarter and fiscal year ended December 27, 2008, included 13 weeks and 52 weeks, respectively.
For the quarter, on a reported basis adjusted for divestitures, total revenue increased 5.5% to $917.6 million; retail store revenue increased 8.0% to $463.8 million; and direct revenue increased 1.3% to $406.0 million. For the quarter, financial services revenue increased 18.6% to $45.2 million. In the fourth quarter, the additional week generated revenue of $34 million and $17 million for the retail and direct segments, respectively. Comparable store sales on a like calendar basis decreased 0.5%. A detailed reconciliation is provided at the end of this release.
For the quarter, net income was $52.4 million compared to $52.7 million in the year ago quarter and diluted earnings per share for the quarter were $0.77 compared to $0.79 in the year ago quarter, each excluding impairment and other special charges. For the quarter, the Company reported GAAP net income of $16.6 million and diluted earnings per share of $0.24 as compared to GAAP net income of $49.4 million and diluted earnings per share of $0.74 in the year ago quarter.
Special charges include restructuring charges as well as the impact of valuations of our interest-only strips associated with our securitized loans. In the fourth quarter of 2009, impairment and restructuring charges include non-cash pre-tax impairment charges of $48.9 million related primarily to certain property and equipment and pre-tax restructuring charges of $3.9 million related to severance. Please see the supporting schedules to this earnings release labeled "Reconciliation of Non-GAAP Financial Measures" for a detailed reconciliation of the GAAP to non-GAAP financial measures.
"Our fourth quarter and full year results exceeded our expectations and reflect the significant progress we have made related to our strategic initiatives," said Tommy Millner, Cabela's Chief Executive Officer. "As we discussed last quarter, our strategic initiatives are to improve retail profitability, increase returns on invested capital, improve inventory levels, and increase profitability at World's Foremost Bank while preserving the brand loyalty of our cardholders."
"Profitability in our retail segment improved as operating margins increased 70 basis points for both the quarter and year as we improved advertising and labor efficiency in our retail stores," Millner said. "Additionally, we made improvements in retail store merchandising processes, as well as distribution and logistics, and continued to focus on improving customer service through training and mentoring programs. We are confident we will continue to improve the four wall contribution of our retail stores."