Cabela’s profit jumps 57.8%

Sidney, Neb. Cabela’s reported Tuesday that net income increased 57.8% to $8.1 million for the quarter ended April 3.

Total revenue increased 5.1% to $559.6 million; retail store revenue decreased 1.5% to $271.3 million; direct revenue increased 2.1% to $222.7 million; and same-store sales decreased 1.7%.

According to the outdoor retailer, the divestiture of Van Dyke’s taxidermy business and Wild Wings in late 2009 accounted for $7.1 million of revenue in first quarter 2009.

“We are encouraged with our revenue growth for the quarter, and in particular, revenue growth in our direct segment, which increased for the first time in six quarters due to growth in Internet sales,” said Tommy Millner, Cabela’s CEO.

Millner said that the company’s strategic initiatives are to improve retail profitability, increase returns on invested capital, improve inventory turns and increase Cabela’s brand loyalty through the operations of World’s Foremost Bank.

In related news, Cabela's announced that it will open a new store in Allen, Texas, with construction slated to begin this summer and an anticipated store opening of early spring 2011. It is also building a new store in Springfield, Ore., which is slated to open early spring 2011 as well.