Hunting and outdoor outfitter Cabela’s reported a strong second quarter Thursday, citing the robust sales of guns and ammunition, along with hunting apparel, optics and archery supplies, as key contributors to its sales growth.
The Sidney, Neb.-based retailer announced a $44.5 million second-quarter profit, or 67 cents per diluted share, up 31.9 percent from $33.9 million, or 47 cents per diluted share, at this time last year. For the second quarter, the company had revenue of $756.8 million.
“We are certainly pleased with our strong second-quarter results and investments we have made to further build the future health of our company,” chief executive Tom Millner said. “Our retail stores are performing at very high levels.”
Those “very high levels” were mirrored in the company’s comparable store sales, which were up 10.5 percent in the second quarter, marking seven straight quarters of comparable store sales improvement. Excluding firearms, comparable store sales increased 9 percent. Comparable store sales increased at 32 of 33 stores.
Gun sales leveled off in the second quarter, compared with earlier in the year when consumer demand for firearms reached frenzied levels, Millner said. “Gun sales have reached a new normal,” he said in an investor conference call Thursday.
Ammunition sales are expected to remain strong.
Keeping the shelves stocked with ammunition has been a challenge but is improving, Millner said.
Supplies of .22-caliber ammunition are still “very, very tight,” Milner said. Ammunition for some pistols and revolvers remains tight but is improving. And while supplies of the much sought after .223-caliber ammunition is also improving, Cabela’s has not been able to replenish its inventory as it would prefer.
Cabela’s, which currently operates 45 stores in North America, has opened five new stores this year and plans to open another five by the end of 2013.
The company announced Thursday that it plans to open four new stores next year — in Acworth, Ga.; Augusta, Georgia; Missoula, Mont.; and Barrie, Ontario, bringing the total number of stores it plans to open in 2014 to 13.