Cabela's 3rd-qtr profit rises

Cabela's 3rd quarter net income rises but results miss expectations

Associated Press

SIDNEY, Neb. (AP) -- NEWS: Outdoor sporting goods company Cabela's Inc. said Thursday its net income rose 17 percent in the third quarter, but results fell short of expectations as sales of guns and ammunition slowed down. Results missed expectations and shares fell 1 percent in morning trading.

DETAILS: The company said a deceleration in ammunition sales, lower Internet traffic, lower average ticket and consumers worried about the economy all weighed on results. "Starting in August, we saw a significant deceleration in the sales of firearms and ammunition as well as a challenging consumer environment across all business channels," said CEO Tommy Millner.

NUMBERS: Net income for the three months ended Sept. 28 rose 17 percent to $49.9 million, or 70 cents per share. That compares with $42.8 million, or 60 cents per share, in the 2012 third quarter. Analysts expected 71 cents per share.

Revenue rose 15 percent to $850.8 million from $741.2 million last year. Analysts expected revenue of $852.7 million.

Sales in stores open at least one year, a key measure of a retailer's growth because it strips out stores that recently opened or closed and focuses on ongoing locations, rose 3.9 percent, or 5.3 percent excluding firearms sales.

FUTURE: The company expects same-store sales will decline at a mid-single digits percentage rate in the fourth quarter, compared with 12 percent growth last year. Millner said the company is "comfortable with the current external earnings estimates for the fourth quarter of 2013." Wall Street is expecting profit of $1.41 per share, on revenue of $1.25 billion.

STOCK: Shares added 5 cents to $62.44 in morning trading. The stock is up about 49 percent since the beginning of the year.

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