Winnipeg Free Press - PRINT EDITION

Guns, ammo boost Cabela's profits

  • Print

NEW YORK -- Cabela's says strong sales of guns and ammunition helped drive its profit up 73 per cent in the first quarter, surpassing expectations and briefly driving its shares to all-time highs on Thursday.

The retailer operates stores that sell gear for hunting, fishing and outdoor sports. Cabela's is opening a new 70,000 square-foot store on Sterling Lyon Parkway on May 9.

Consumer demand for firearms has surged in recent months on worries about the possibilities of increased regulation or bans of certain kinds of weapons in the wake of the December slayings of 20 first-graders and six adult staffers at the Sandy Hook Elementary School in Newtown, Conn.

The shooting stirred up debate over gun control. A bill to expand background checks for gun purchases was introduced in the Senate, which also fueled demand, even though the bill was voted down last week. In fact, guns and ammunitions have been tough to keep on store shelves.

Millner said Cabela's has been able to keep up with demand better than others because it began diversifying its supplier base four years ago. But he added that supply is still tight, particularly in some categories such as .22-calibre ammunition. Demand shows no sign of slowing, he added.

"I think the honest answer is, I don't know when it's going to loosen up," Millner said.

Sidney, Neb.-based Cabela's Inc. said net income rose to $49.8 million, or 70 cents per share, in the January-March quarter, up from $28.8 million, or 40 cents per share, in the year-ago quarter. Analysts expected 59 cents per share, according to FactSet.

Revenue jumped 29 per cent to $802.5 million from $623.5 million last year. Analysts expected revenue of $770.5 million.

The results beat Cabela's expectations as well. In March it said it expected earnings between 57 cents to 62 cents per share.

"First-quarter results exceeded our expectations on every line of the income statement," said CEO Tommy Millner. He said revenue in the second half of March was much stronger than expected. Particularly strong were sales of guns and bullets, along with shoes and clothing, he said.

Excluding guns and bullets, revenue in stores open at least one year rose nine per cent. During a call with analysts, Millner said that due to strong demand and tight supply of ammunition, the company is not going to report revenue in stores open at least one year that includes guns and ammunition until the demand "normalizes."

Millner said Cabela's stores continue to see strong new customer growth due to the demand for guns.

 

-- The Associated Press

Republished from the Winnipeg Free Press print edition April 26, 2013 B9

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Public finally sees inside Museum for Human Rights

View more like this

Photo Store Gallery

  • PHIL HOSSACK / WINNIPEG FREE PRESS 070619 LIGHTNING ILLUMINATES AN ABANDONED GRAIN ELEVATOR IN THE VILLAGE OF SANFORD ABOUT 10PM TUESDAY NIGHT AS A LINE OF THUNDERSTORMS PASSED NEAR WINNIPEG JUST TO THE NORTH OF THIS  SITE.
  • PHIL.HOSSACK@FREEPRESS.MB.CA Winnipeg Free Press 090528 STAND UP...(Weather) One to oversee the pecking order, a pack of pelican's fishes the eddies under the Red River control structure at Lockport Thursday morning......

View More Gallery Photos

Poll

Do you think the Scottish independence referendum will have an effect in Canada?

View Results

View Related Story

Ads by Google