Cabela's Inc. (CAB, Financial) filed Quarterly Report for the period ended 2011-04-02.
Cabela's Inc. has a market cap of $1.8 billion; its shares were traded at around $26.37 with a P/E ratio of 14.4 and P/S ratio of 0.6. Cabela's Inc. had an annual average earning growth of 1% over the past 5 years.
Operating income for the three months ended April 2, 2011, increased $15 million, or 93.8%, compared to the three months ended April 3, 2010, and total operating income as a percentage of total revenue increased 250 basis points over the same period. These increases in total operating income and total operating income as a percentage of total revenue in the three months ended April 2, 2011, compared to the three months ended April 3, 2010, were primarily due to increases in revenue from our Retail and Financial Services segments as well as an increase in our merchandise gross profit. These increases were partially offset by decreases in revenue from our Direct business segment for the three months ended April 2, 2011, compared to the respective 2010 periods. Selling, distribution, and administrative expenses were flat comparing the respective periods but were affected by the decrease of $18 million related to the 2009 FDIC examination offset by increases in comparable and new store costs, pre-opening costs, and costs related to supporting our customer relationship management system.
/td>We have improved our retail store merchandising processes, management information systems, and distribution and logistics capabilities. We have also improved our visual merchandising within the stores and coordinated merchandise at our stores by adding more regional product assortments. To enhance customer service at our retail stores, we have increased our staff of outfitters and have continued our management training and mentoring programs that we implemented in 2010. In addition, our Retail segment benefited from the improvements in the operations of the Financial Services segment, as the marketing fee paid by the Financial Services segment increased $15 million for the three months ended April 2, 2011, compared to the three months ended April 3, 2010. As a result of these improvements, comparing the three months ended April 2, 2011, to the three months ended April 3, 2010, comparable store sales increased 8.9%, operating income increased $17 million, and operating income as a percentage of Retail business segment revenue increased 500 basis points, to 11.6% in the three months ended April 2, 2011.
Operating income for our Direct business segment was $36 million in the three months ended April 2, 2011, compared to $30 million in the three months ended April 3, 2010. Operating income as a percentage of our Direct business segment revenue increased to 17.3% in the three months ended April 2, 2011, up 370 basis points compared to the three months ended April 3, 2010, primarily due to an increase in the marketing fee received from the Financial Services segment.
Developments in Legislation and Regulation – On March 3, 2011, WFB and the FDIC settled all matters related to the FDIC's findings associated with its 2009 compliance examination, and a Consent Order and Order to Pay was issued. Without admitting or denying the FDIC's allegations, WFB agreed to pay restitution, including interest, totaling approximately $7 million, which was net of amounts reimbursed on previously charged-off accounts, and a civil money penalty of $0.25 million, and to strengthen management and board oversight of WFB's credit card operations. All restitution amounts were paid in March 2011, and the civil money penalty was paid in February 2011.
Direct Revenue - Direct revenue decreased $15 million, or 6.9%, in the three months ended April 2, 2011, compared to the three months ended April 3, 2010, primarily due to decreases in our call center revenue partially offset by increases in Internet sales. We divested our non-core home restoration products business in October 2010. For comparative purposes, Direct revenue in the three months ended April 2, 2011, compared to the three months ended April 3, 2010, adjusted for the effect of this divestiture, would have resulted in a decrease of $11 million, or 4.9%. Comparing the three months ended April 2, 2011, to the three months ended April 3, 2010, Direct revenue was also negatively affected by expected declines in ammunition and shooting products as this portion of the hunting equipment category returns to more historical levels. Our hunting equipment and clothing and footwear categories were, however, the largest dollar volume contributor to our Direct revenue for the three months ended April 2, 2011.
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Cabela's Inc. has a market cap of $1.8 billion; its shares were traded at around $26.37 with a P/E ratio of 14.4 and P/S ratio of 0.6. Cabela's Inc. had an annual average earning growth of 1% over the past 5 years.
Highlight of Business Operations:
Revenues in the three months ended April 2, 2011, totaled $587 million, an increase of $27 million, or 4.8%, over the three months ended April 3, 2010. Revenue in our merchandising business increased $15 million comparing the respective periods. The net increase in total merchandise sales comparing the three months ended April 2, 2011, to the three months ended April 3, 2010, was due to an increase of 8.9% in comparable store sales, led by increases in the clothing and footwear and hunting equipment categories, and to sales from our new retail store that opened in Grand Junction, Colorado, in May 2010. These increases were partially offset by a decrease in Direct revenue, which included $4 million of revenue in the three months ended April 3, 2010, from our non-core home restoration products business that we divested in October 2010.Operating income for the three months ended April 2, 2011, increased $15 million, or 93.8%, compared to the three months ended April 3, 2010, and total operating income as a percentage of total revenue increased 250 basis points over the same period. These increases in total operating income and total operating income as a percentage of total revenue in the three months ended April 2, 2011, compared to the three months ended April 3, 2010, were primarily due to increases in revenue from our Retail and Financial Services segments as well as an increase in our merchandise gross profit. These increases were partially offset by decreases in revenue from our Direct business segment for the three months ended April 2, 2011, compared to the respective 2010 periods. Selling, distribution, and administrative expenses were flat comparing the respective periods but were affected by the decrease of $18 million related to the 2009 FDIC examination offset by increases in comparable and new store costs, pre-opening costs, and costs related to supporting our customer relationship management system.
/td>We have improved our retail store merchandising processes, management information systems, and distribution and logistics capabilities. We have also improved our visual merchandising within the stores and coordinated merchandise at our stores by adding more regional product assortments. To enhance customer service at our retail stores, we have increased our staff of outfitters and have continued our management training and mentoring programs that we implemented in 2010. In addition, our Retail segment benefited from the improvements in the operations of the Financial Services segment, as the marketing fee paid by the Financial Services segment increased $15 million for the three months ended April 2, 2011, compared to the three months ended April 3, 2010. As a result of these improvements, comparing the three months ended April 2, 2011, to the three months ended April 3, 2010, comparable store sales increased 8.9%, operating income increased $17 million, and operating income as a percentage of Retail business segment revenue increased 500 basis points, to 11.6% in the three months ended April 2, 2011.
Operating income for our Direct business segment was $36 million in the three months ended April 2, 2011, compared to $30 million in the three months ended April 3, 2010. Operating income as a percentage of our Direct business segment revenue increased to 17.3% in the three months ended April 2, 2011, up 370 basis points compared to the three months ended April 3, 2010, primarily due to an increase in the marketing fee received from the Financial Services segment.
Developments in Legislation and Regulation – On March 3, 2011, WFB and the FDIC settled all matters related to the FDIC's findings associated with its 2009 compliance examination, and a Consent Order and Order to Pay was issued. Without admitting or denying the FDIC's allegations, WFB agreed to pay restitution, including interest, totaling approximately $7 million, which was net of amounts reimbursed on previously charged-off accounts, and a civil money penalty of $0.25 million, and to strengthen management and board oversight of WFB's credit card operations. All restitution amounts were paid in March 2011, and the civil money penalty was paid in February 2011.
Direct Revenue - Direct revenue decreased $15 million, or 6.9%, in the three months ended April 2, 2011, compared to the three months ended April 3, 2010, primarily due to decreases in our call center revenue partially offset by increases in Internet sales. We divested our non-core home restoration products business in October 2010. For comparative purposes, Direct revenue in the three months ended April 2, 2011, compared to the three months ended April 3, 2010, adjusted for the effect of this divestiture, would have resulted in a decrease of $11 million, or 4.9%. Comparing the three months ended April 2, 2011, to the three months ended April 3, 2010, Direct revenue was also negatively affected by expected declines in ammunition and shooting products as this portion of the hunting equipment category returns to more historical levels. Our hunting equipment and clothing and footwear categories were, however, the largest dollar volume contributor to our Direct revenue for the three months ended April 2, 2011.
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