Cabela's Chief very pleased by Q1 performance
Cabela's Incorporated reported strong financial results for first quarter fiscal 2011.
For the quarter, adjusted for divestitures, total revenue increased 5.7% to $587 million; Retail store revenue increased 11.3% to $302 million; Direct revenue decreased 4.9% to $207 million; and Financial Services revenue increased 20.7% to $72 million. For the quarter, comparable store sales increased 8.9%. On a reported basis, total revenue increased 4.8% and Direct revenue decreased 6.9%. A detailed reconciliation is provided at the end of this release.
For the quarter, the Company reported GAAP net income of $17.8 million compared to $8.1 million in the year ago quarter and earnings per diluted share of $0.25 compared to $0.12 in the year ago quarter. First quarter 2010 results include an $11.9 million after-tax charge related to a 2009 FDIC compliance examination. Adjusting 2010 results for this FDIC charge, net income for the quarter was $17.8 million compared to $20.0 million in the year ago quarter and earnings per diluted share were $0.25 compared to $0.29 in the year ago quarter, also adjusted.
"We are very pleased by our performance in the quarter as it provides strong ongoing validation our strategies are working," said Tommy Millner, Cabela's Chief Executive Officer. "Furthermore, investments in our Retail business that we began last fall and continued into the first quarter drove higher comparable store sales, increased customer satisfaction, and expanded market share. Exceptional results in Retail revenue and segment profitability, record performance at our Cabela's CLUB Visa program, and strong consolidated gross margin results led to further increases in one of our vitally important metrics - after-tax return on invested capital."
"The 230 basis point increase in after-tax return on invested capital marks the eighth consecutive quarter of expansion and is a result of our continual focus on increasing profitability while tightly managing our balance sheet," Millner said. "Over the past eight quarters we have increased after-tax return on invested capital more than 400 basis points and there continues to be further opportunities for us to improve after-tax return on invested capital."
"Sales increased in each of our 29 comparable stores in the quarter; a first for Cabela's," Millner said. "Retail segment operating margins increased for the eighth consecutive quarter to a first quarter record 11.6%, as our stores benefited from our integrated business model with the Cabela's CLUB Visa program. Our newest retail store opened just two weeks ago in Allen, Texas, to a crowd of several thousand loyal customers. This 100,000 square foot next generation store will allow us to further increase our market share in the important Dallas-Fort Worth market."