Cabela’s beats Street with Q2 results; announces openings in Michigan and Alaska
Sidney, Neb. — Outdoor-gear retailer Cabela’s Inc. reported Thursday that net income for the second quarter increased to $33.9 million, from $21.7 million in the year-ago period.
Total revenue rose 11.6% to $627.3 million, boosted by a 17% rise in retail store revenue – to $384.7 million. Analysts forecasted total revenue of $606.3 million.
Same-store sales increased 4.7%.
"This strong performance is company-wide and shows that our strategic initiatives have generated major improvements in our business," said Tommy Millner, CEO. “Each of our three new stores opened this year exceeded our expectations in the quarter, which reinforces our decision to accelerate retail store expansion."
Cabela’s on Thursday announced it would open a store in Saginaw, Mich., in spring 2013, and a store in Anchorage in spring 2014.
The 43,000-sq.-ft. Saginaw store is slated to start construction this fall; its opening – in a former Circuit City building — will mark the state’s third Cabela’s. It is also the retailer’s second planned Cabela’s Outpost Store, joining the Union Gap, Wash., location scheduled to open this fall.
The smaller-format Outpost stores are designed for underserved markets that are too small to support a full-size Cabela’s store.
In Anchorage, the retailer will open a full-size 100,000-sq.-ft. store, which represents the chain’s state debut. Construction is slated to start next spring.
In addition to next-generation stores scheduled to open this summer in Charleston, W.Va., and Rogers, Ark., and the first Outpost store to open in Union Gap, Wash., Cabela’s has announced plans to open six next-generation stores in 2013 – Columbus, Ohio; Grandville, Mich.; Louisville, Ky.; Thornton, Colo.; Lone Tree, Colo.; and Green Bay, Wis.
Cabela’s delivers strong revenue growth in Q2
SIDNEY, Neb. — Revenues rose 11.6% to $627.3 million at Cabela’s during its second quarter, consisting of a 16.9% increase in store revenue, a 0.7% decrease in direct revenue and a 12.8% increase in financial services revenue. Same-store sales rose 4.7%.
Net income for the quarterr increased to $33.9 million compared with $21.7 million and earnings per diluted share were 47 cents compared with 31 cents, each compared with the year ago quarter.
"This strong performance is company-wide and shows that our strategic initiatives have generated major improvements in our business," said Tommy Millner, Cabela’s CEO. "Every key line of our income statement benefited. Retail and Direct channel revenue, merchandise margin, operating margin, expenses as a percentage of revenue, inventory turns, earnings per share and return on capital all improved."
Jakks builds up portfolio with Maui acquisition
MALIBU, Calif. — Jakks Pacific has acquired Ohio-based Maui Inc., a manufacturer and distributor of spring and summer activity toys, outdoor sports related toys, impulse toys including the popular Wave Hoop and Sky Ball products under the Maui Toys brand.
Jakks Pacific has acquired all of the shares of stock of Maui, a 24-year-old, privately held company, and its Hong Kong based affiliate A.S. Design Limited. The business is comprised of proprietary non-licensed brands.
Stephen Berman, CEO and president, Jakks Pacific, stated, “The Maui Toys acquisition complements our growing portfolio of non-licensed, proprietary brands. We expect that it will enhance our product portfolio, diversify our distribution, and offer great products to our consumers around the world. We anticipate expanding the Maui Toys product line through our strong distribution channels in key international markets.”
The Company expects that the Maui acquisition will be accretive to earnings in 2013. The determination of the impact to 2012 is subject to completion of the purchase price allocation for 2012 which has not yet been completed.