RETAILING – Outdoor equipment store Cabela’s fiscal third-quarter profit rose 65 percent in the period, propelled by the elimination of an unprofitable store promotion and the strong performance of what the company calls its ”next-generation” stores, according to the McClatchy-Tribune News Services.
The Sidney, Neb.-based company, which operates a store in Post Falls, Idaho, earned $35.6 million in the quarter, up from $21.6 million in the third quarter of 2010.
CEO Tommy Millner said the elimination of a store promotion that offered customers a $150 discount on a $500 purchase helped to significantly increase its merchandise gross margins.
Millner said sales of firearms, ammunition, power sports, fishing gear and men’s apparel were strong, while weaker for optics, archery, tree stands and hunting equipment.
One analyst asked Millner what effect slower firearm and ammunition sales might have on the business. Millner said he thought that was going to happen five years ago, but sales remain strong. The company expects that trend to continue next year because it’s an election year.