Cabela’s earnings slip in Q3

Despite sales gains, Cabela’s experienced profit losses for the third quarter.



For the quarter ended Oct. 1, 2016, the outdoor retailer’s total revenue increased 7.6% to $996.5 million; revenue from retail store sales increased 8.1% to $688.6 million; Internet and catalog sales increased 3.6% to $167.4 million; and financial services revenue increased 8.8% to $134.5 million.



However, U.S. comparable store sales decreased 1.8% and consolidated comparable store sales decreased 2.3%. Meanwhile, the company’s net income decreased 35.4% to $28.2 million for the quarter, compared to $43.7 million for the same period a year ago.



While the company successfully drove sales growth “in several of our key merchandise categories through an aggressive promotional and markdown cadence, these promotional activities also resulted in a decrease in merchandise gross margins, and were the primary contributor to the profitability shortfall,” said Tommy Millner, Cabela’s CEO. “Importantly, we saw the success of a variety of expense leverage efforts, and we continue to be excited about our combination with Bass Pro Shops, which is expected to be completed in the first half of 2017.”