Cabela's expects diluted earnings per share to be $0.18 & $0.20
22 Oct '07
2 min read
Cabela's Incorporated, the World's Foremost Outfitter of hunting, fishing and outdoor gear announced preliminary financial results for its third fiscal quarter ended September 29, 2007.
For the third quarter of fiscal 2007, Cabela's expects to report total revenue of approximately $547 million, which represents an 11.5% increase in total revenue compared to the third quarter of fiscal 2006, including a 4.2% increase in the Company's direct business and a 4.6% increase in same store sales.
During the third quarter, the Company initiated a new advertising strategy at its retail locations to capture additional market share. This advertising strategy, combined with an increase in the proportion of hard good sales to total sales and softer apparel sales, impacted the Company's gross margin for the quarter.
Additionally, two of the stores opened in 2006 did not meet the Company's sales expectations for the third quarter. As a result, the Company expects diluted earnings per share to be between $0.18 and $0.20 for the third quarter.
"While we were pleased with our top-line performance, and in particular our 4.6% same stores sales increase, our bottom line was impacted by gross margin pressure due to additional promotions in the quarter," said Dennis Highby, Cabela's President and Chief Executive Officer.
"We believe we have put changes in place which will help reduce margin pressure in the fourth quarter. We now expect diluted earningsper share to increase at a high single digit growth rate for fiscal 2007 versus our previous guidance of mid-teens."
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