Cabelas sales and earnings were impacted by the Hurricanes hitting the Gulf Coast, the resulting higher energy prices, and the effect this is having on consumer spending. Third quarter fiscal 2005 revenues are expected to increase 12% with diluted EPS “at or slightly below” the same period last year, when CAB reported diluted EPS of 25 cents.
The company anticipates that direct revenue will be equal to last years levels while total retail revenue is expected to increase roughly 23% and same store sales are expected to decrease in the range of 8% – 9%. Financial services revenue is forecasted to increase approximately 46% for the third quarter of fiscal 2005.
At the end of Q2, Cabelas management said they were confident in achieving “mid-teens” growth rates in both sales and earnings. Currently the company seems to still be on-track towards these results.
Dennis Highby, Cabela's president and CEO, said “Including the impact of the third quarter, for the nine months ended October 1, 2005, we continue to achieve results consistent with our long-term growth objectives. For the nine month period, consolidated revenues will increase approximately 15%, while consolidated net income is expected to increase approximately 13%.”