Cabela's expects 13.9% 4Q revenue growth

SIDNEY, Neb. Cabela’s Tuesday released its preliminary financial results for its fourth quarter and fiscal year ended Dec. 29, 2007. The company also provided information on its plans to improve its existing operations in 2008.

The company expects to report a 13.9% increase in total revenue for the fourth quarter. This will include a 3.3% increase in direct business revenue. Total retail store revenue is expected to increase 31.8%, including a 5.9% decline in same-store sales. Diluted earnings per share for the fourth quarter are expected to be in the range of  83 cents to 85 cents.

For the full year 2007, total revenue is expected to increase 13.9% over 2006, with a 3.9% increase in direct business revenue. Total retail store revenue is expected to increase 27.2%, with a 1.2% decline in same-store sales. Diluted earnings per share for fiscal 2007 are expected to be in the range of $1.29 to $1.31.

Cabela's said that during 2008, it plans to slow retail expansion and focus on building profitability at its existing operations. In order to achieve these goals, the company said it woul improve retail productivity and same-store sales through enhanced product assortment, streamlined flow of merchandise to its stores and reduced operating expenses. The company also said it would reallocate store space by department by season to improve merchandise planning.

The company said it expects to open two stores in 2008, one in the second quarter, and another in the third quarter.

Cabela's reported that because of its plan to slow retail growth and focus on existing operations, it anticipates earnings per share for 2008 will grow at a mid-single digit rate. For 2008, capital expenditures, including purchases of marketable securities, are expected to be $110 million, as compared to approximately $376 million in 2007.