New retail space contributed to a double-digit second quarter revenue rise at Cabela's, but profit was cut by more than US$4m.

The outdoor gear retailer reported a 37.1% increase in retail store revenues to $273.6m, creating an overall 16.6% rise in revenues to $526m, but same store sales dropped 1.6%.

That created net income for the quarter ended 28 June of $7.3m, down 35.4% on last year's $11.3m.

First-half revenues were up 16.2% to $1.06bn, while profits were $17.2m, compared to $18.4m last year.

Direct revenue for the quarter edged up 1.5% to $207m, while financial services revenue fell 6.7% to $38.3m, thanks in part to losses from the company's credit card services.

"During the second quarter, we achieved top-line improvements in our direct and retail businesses despite a continued difficult macroeconomic environment," said Dennis Highby, Cabela's president and CEO.

"However, revenue in our financial services segment declined year-over-year due to higher net charge-offs."

Highby added that the company expected to make further progress with its plans to drive profitability in its retail business.