Cabela’s Looks Good in Q2
SIDNEY, Neb. – The outdoor clothing and gear retailer Cabela’s is reporting second quarter revenue increases over last year: 16.5% from $387.3 million in the second quarter 2006 to $451.2 million. Net income increased to $11.3 million ($0.17 per diluted share) compared to $8.4 million ($0.13 per diluted share) for the second quarter of 2006.
In a statement released by the company, CEO Dennis Highby said: “We also continued to grow our retail presence during the quarter, opening our Hazelwood, Missouri, store in April and announcing plans to build a new store in Greenwood, Indiana, next year. And, we remain on track to open seven new stores in 2007. By year’s end, we will have a total of 26 stores in operation, accounting for approximately 4.0 million retail square feet.”
Last month, MRketplace.com reported that a federal court judge in Minnesota ruled against the company, saying that its competitor Gander Mountain is free to use the Gander trade name and marks in its direct marketing. Gander’s predecessor company sold its direct marketing division and certain licensing rights to Cabela’s for $35 million in 1996, a deal that included a non-compete clause which expired in 2003. Cabela’s issued a press release saying it was “undeterred” by the ruling, and that was considering an appeal.