Cabela’s Net Income Slides
Sidney, Neb. Cabela’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, Cabela’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 company’s next-generation store.
Target.com offers installation services
MINNEAPOLIS Target.com customers will now have access to next-day installation services for their electronics through a new deal with Zip Express Installation.
Through Zip Express, Target.com customers will have the first installation option through the retail chain and can purchase installation packages alongside any major home electronic purchases made on Target.com, with next-day installation available anywhere in the United States and Canada. The selected service is rung up with the product at checkout and the customer can then call the toll free number or visit www.zipinstallation.com immediately after purchase to schedule a specific day and hour that is most convenient for installation.
“Many retailers today rely on the additional revenue gained from installation services,” said Chris Mauzy, president and ceo of Zip Express Installation. “Our services provide retail partners with the same benefits achieved from an in-house installation service, but without the overhead required to support the in-house program themselves.”
Wal-Mart asks shoppers to share BTS savings tips
BENTONVILLE, Ark. Wal-Mart has announced a new promotion in which it is asking consumers to share their money-saving tips for the back-to-school season. Visitors to the company’s MakeYourDollarStretch.com site can submit their stories on how they have learned to save on back-to-school spending for the chance to win a $600 Wal-Mart gift card.
The winners will be chosen by Ellie Kay, financial expert and Web site contributor and one finalist, receiving the most votes from visitors to the site, will take home an additional $600, Wal-Mart reported.
“Considering today’s inflation pressures and the rising need families have to better manage their spending, it is becoming more important than ever for parents to think about shopping smart and looking for resources to save money,” said “We all have ideas to share, and I expect this challenge will generate even more.”