Sidney, Neb. Sporting enthusiasts are still shopping—at least at recreation retailer Cabela’s. Total revenue in the first quarter of Cabela’s 2008 fiscal year was 15.9% above the same period last year, $535.5 million vs. $462.1 million in fiscal 2007.
However, same-store sales dipped 8.4% and revenue from direct sales dropped 0.6% to $236.5 million. Total store revenue was up 37.7% to $254.4 million and revenue from financial services grew 13.9% to $40.7 million.
Net income also increased in the first fiscal quarter, growing 39.4% to $10.0 million, compared to $7.1 million for the first fiscal quarter of 2007.
In the retailer’s prepared statement, Cabela’s president and chief executive Dennis Highby, stated, "We were able to drive meaningful operating margin expansion in each division due to improved gross margins and expense management. Additionally, our financial-services business outperformed our top and bottom-line expectations during the quarter."
Cabela’s has reduced inventory per square foot in its stores and plans to open a new store in Scarborough, Maine, on May 15, and another in Rapid City, South Dakota, in August.