Cabela’s Income Jumps in Q2
Hamburg, Pa., Multi-channel sporting goods retailer Cabela’s reported net income increased to $6.0 million in the second quarter, ending July 2, compared to $2.0 million for the same period a year ago. Total revenue for the second quarter increased 23.2% to a record $343.9 million.
During the second quarter of fiscal 2005, direct revenue increased 10.5% to a record $183.2 million. Total retail revenue increased 13.2% to $109.2 million and-same store sales decreased 6.0%, due in part to the strong performance during the second quarter of fiscal 2004 of the company’s Hamburg, Pa., retail store. The Hamburg store contributed 2.8% to the same store sales decline. Financial services revenue increased 103.0% to $30.4 million for the second quarter of fiscal 2005.
Safeway’s Sales Increase
Pleasanton, Calif., Safeway saw its comparable-store sales increase 3.3% and its identical-store sales increase 2.8% for the second quarter of 2005. The company’s total sales increased 4.7% to $8.8 billion for the second quarter of 2005. Last year, Safeway’s total sales were $8.4 billion for the second quarter.
Safeway believes the increase is due to its marketing strategies and recovery from the strike in Southern California last year. Steve Burd, chairman, president and CEO of Safeway, said, “Our strategy to differentiate our offering has resulted in broad-based sales improvement.”
Net income for Safeway, however, decreased for the second quarter. This year’s income was $134 million while last year’s was $155.2 million.
Food Lion Hires Ex-Kroger Exec
Salisbury, N.C., Food Lion hired Derrick Penick, a former merchandiser for Kroger, as senior VP of fresh merchandising and distribution. He replaces Cathy Green, who is now senior VP of retail operations.
Penick was most recently VP of merchandising at Kroger’s King Soopers division in Denver. Before that position, he had several other posts with Kroger including group VP of perishables, VP of merchandising, meat director and store manager.