FINANCE

Gadgets, services propel Apple in Q3

BY Dan Berthiaume

Cupertino, Calif. – Sales of gadgets such as iPhone, iMac and the new Apple Watch, as well as services, helped propel Apple’s strong performance during the third quarter of fiscal 2015. Net income soared 39% to $10.7 billion from $7.7 billion the same quarter the prior year, aided by costs and taxes that did not increase as fast as sales.

Revenue increased 33% to $49.6 billion, from $37.4 billion.

“We had an amazing quarter, with iPhone revenue up 59% from last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch,” said Tim Cook, Apple’s CEO. “The excitement for Apple Music has been incredible, and we’re looking forward to releasing iOS 9, OS X El Capitan and watchOS 2 to customers in the fall.”

Looking ahead to the fourth quarter, Apple expects revenue between $49 billion and $51 billion.

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FINANCE

Cabela’s misfires on Q2 profit and revenue; will open seven stores

BY Dan Berthiaume

Sidney, Neb. – Specialty outdoor retailer Cabela’s Inc. missed the target Wall Street set for profit and revenue during the second quarter of fiscal 2015. Cabela’s reported net income of $40.5 million, down 8% from $43.5 million the same quarter the prior year.

Growing cost of revenue helped drive down profit. Total revenue grew 10% to $836.28 million, from $761.2 million. Consolidated same-store sales dropped 0.9% due to Canadian currency fluctuations, although same-store sales in the U.S. increased 0.8%.

Cabela’s plans to open four stores in the third quarter of fiscal 2015 and two stores in the fourth quarter. In addition, Cabela’s expects construction on an 82,000-sq.-ft. store in Summerville, South Carolina to begin in 2015, and anticipates a fall 2016 opening. It will be the third Cabela’s store in South Carolina and will employ approximately 175 full-time, part-time and seasonal employees. The store, developed by MeadWestvaco, will be built in the company’s new-format layout, designed to offer customers an immersive outdoor experience.

“While our second quarter results fell short of expectations, we are encouraged by several positive trends in our business, including our fifth consecutive quarter of sequential improvement in U.S. same-store sales,” said Tommy Millner, Cabela’s CEO.

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OPERATIONS

Former eBay exec joins Ernst & Young as innovation head

BY Dan Berthiaume

New York – The changes continue at eBay. Jeff Wong, who ran eBay’s Business Incubation Group, has joined professional services firm Ernst & Young as chief innovation officer.

Wong will lead Ernst & Young’s newly formed Global Innovation Team. The team will identify emerging concepts and solutions and also work to develop new technologies, strategies and solutions.

Wong began his career with the Boston Consulting Group and worked at JAFCO America Ventures, in addition to J.P. Morgan Partners. Wong spent the last 10 years at eBay, where he was on the Marketplaces Strategy team. He was the founder and senior director of eBay’s Business Incubation Group, which was responsible for building new startups for eBay Marketplaces.

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