A better start for Cabela's in 2015

Volatile demand for firearms seems to be easing at Cabela’s, which reported a profit rise of 6.9% in the first quarter despite a drop in same store sales.

The Nebraska-based retailer reported net income of $26.8 million, or 37 cents per diluted share, compared with net income in the first quarter a year ago of $25.7 million, or 36 cents per diluted share.Revenue increased 14% in the first quarter to $827.1 million. Revenue grew 18.9% to $524.4 million, with same store sales falling 0.4% in the U.S. Catalog and e-commerce revenue fell 3.3% to $173.5 million, and financial services revenue, from the company’s credit card operations, grew 24.7 percent to $122.9 million.

“We have started the year well and are pleased that the extreme volatility in firearms and ammunition over the past two years seems to have normalized,” said Tommy Millner, Cabela’s chief executive officer, in a news release. “Our new format stores continue to significantly outperform our legacy stores in sales and profit per square foot. As our business grows, we are excited as we accelerate the pace of our new store openings."

Cabela's also announced plans for another store opening, this one in Avon, Ohio, near Cleveland.

During the quarter, growth in the average number of active credit card accounts was 7%, growth in the average balance per active credit card account was 5% percent, and growth in the average balance of credit card loans was 12.3% to $4.2 billion. For the quarter, net charge-offs



Millner said the outdoor retailer plans to accelerate the pace of its new store openings.



“During the first quarter, we opened two new stores and plan to open a total of five stores in the second quarter, four stores in the third quarter, and two stores in the fourth quarter,” he said.