US: New stores boost Cabela’s Q3 profit
- Q3 net profit rises 16.6% to US$49.9m
- Revenues up 14.8% to $850.8m
- New store formats highly successful
Outdoor and camping retailer Cabela’s new store formats helped boost net profit by nearly 17% in the third quarter, with revenues also rising in double digits.
The company’s retail operations spearheaded the growth, with retail sales rising 20.8% to $550.9m, comparable store sales up 3.9% and direct revenues edging up 0.9% to $198.6m.
Cabela’s reported strong performances from men’s apparel, hunting apparel and general outdoors, with gross margin up by 10 basis points to 37.3%.
CEO Tommy Millner said the retailer's next-generation stores had out-performed its legacy store base by 50% in sales per square foot and by 60% in profit per square foot.
“Based on this, we plan to expand retail square footage at a low- to mid-teens rate over the next several years with our next-generation and Outpost store formats,” he said.
However, Cabela’s said it expected to record a decline in comparable store sales during the fourth quarter, thanks to strong comparisons with last year.
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