Cabelas continues to see its Retail business capture a larger part of its fast-growing business as the big-box outdoor recreation retailer prepares for its pending IPO. Cabelas is poised to partake of the same success experienced by rival Gander Mountains IPO, and based on their performance in the first quarter, they aim to show the market that you can make money in this market. Net income jumped 161% in the quarter to more than $8.0 million on a 6.7% increase in comparable store sales.
Total revenue increased 19.7%, to $313.9 million in Q1, compared to $262.3 million in the first fiscal quarter of 2003.
Direct revenue increased 8.8% to $205.8 million from $189.2 million in the year-ago quarter, due primarily to “an increase in customer purchases or orders”, particularly Internet orders, and “an increase in orders of new or recently introduced product categories”. Direct revenues were 65.6% of total revenues in Q1 versus 72.1% of the total in Q1 last year.
Retail revenue increased 50.9% to $90.5 million in the first fiscal quarter to 28.8% of the business, versus $60.0 million, or 22.9% of the business, in the year-ago quarter. New stores contributed $26.6 million, or 87% of the Q1 sales gain, while comps increased 6.7% versus a 6.6% decline in Q1 last year.
Financial Services revenue was up 43.3% to $16.4 mm.
Gross margins improved 50 basis points to 39.9% of sales in Q1, primarily on the back of the increase Financial Services revenue, which represented $5.0 million of the increase in gross profit and has no cost of revenue. Gross profit of the merchandising business increased 30 basis points to 36.9% of sales in Q1 from 36.6% in the first fiscal quarter of 2003.
Operating income increased 101.2% to $12.7 million in Q1 from $6.3 million in the year-ago quarter.
>>> Keep an eye on this one when it floats, it could be an interesting ride…