Sidney, Neb. Cabelaâ€™s Inc. reported that net income for the second quarter of 2008 was $7.3 million compared to $11.3 million for the second quarter of 2007.
Total revenue for its second quarter increased 16.6% to $526.0 million compared to $451.2 million in the same quarter as last year. Retail store revenue increased 37.1% to $273.6 million with a same-store sales decrease of 1.6%; direct revenue increased 1.5% to $207.0 million; and financial-services revenue decreased 6.7% to $38.3 million.
The company said financial-services revenue was adversely impacted by an increase in bad debts in the company's credit-card portfolio. Charge-off levels remain well below industry average, and delinquency rates have stabilized as compared to the first quarter of 2008.
"During the second quarter, we achieved top-line improvements in our direct and retail businesses despite a continued difficult macroeconomic environment," said Dennis Highby, Cabelaâ€™s president and CEO. "However, revenue in our financial-services segment declined year over year due to higher net charge-offs."
The company plans to open an 80,000-sq.-ft. store in Rapid City, S.D., next month. Designed to be less capital intensive and more efficient, the Rapid City location is designated as the companyâ€™s next-generation store.