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Holidays not very merry for Cabela's
The CEO of Cabela’s is blaming marketing costs for the company’s weaker earnings in the fourth quarter.
For the quarter, total revenue increased 7.2% to $1.3 billion; retail store revenue increased 13.9% to $810.6 million; direct revenue decreased 5.4% to $349.9 million; and financial services revenue increased 9.9% to $113.3 million. During the period, same store store sales decreased 5.5%.
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Relocation, ad expenses clip Cabela’s Q4 income
Sidney, Neb. - Incremental expenses related to the relocation of a distribution center in Winnipeg, Canada, as well as increased promotional and advertising spending, helped drive down Cabela’s Inc. net income 2% to $78.6 million from $80.1 million in the fourth quarter of fiscal 2014.
Total revenue increased 7% to $1.3 billion, from $1.2 billion. Although increased retail store revenue fueled total revenue growth, same-store sales fell 5.5%.