Cabela’s defies recession as Q2 profit jumps 27%

Sidney, Neb. Cabela's posted a 27% increase in quarterly profit Thursday on strong demand for hunting equipment. The chain boosted its 2009 revenue outlook and said earnings for the year could top 2008 if the positive momentum continues.

Net income in the second quarter rose to $9.12 million from $7.28 million a year earlier.

Total revenue for second quarter 2009 increased 4.4% to $549.2 million compared with $526.0 million for second quarter 2008, with retail store revenue up 10.2% to $301.6 million. Same-store sales increased 6.1%.

“We are very pleased to post another solid quarter,” said Tommy Millner, Cabela’s CEO. “Our 6.1% increase in comparable store sales, driven by strength in hunting equipment, represents our third consecutive quarter of positive gains. We continue to gain momentum in the hunting equipment category, as we take market share from our competitors and leverage our multichannel model to provide our customers with a great value proposition.”

For the full year, the company now expects revenue and same-store sales to increase at low-single-digit percentage rates, up from its previous forecast for flat performance.

Cabela's still expects full-year earnings per share to roughly equal 2008 results but said profit could rise if the first-half momentum continues.