Cabelas Incorporated (CAB) has reported a 16.72 percent fall in profit for the quarter ended Apr. 01, 2017. The company has earned $19.06 million, or $0.28 a share in the quarter, compared with $22.89 million, or $0.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $27.61 million, or $0.40 a share compared with $29.54 million or $0.43 a share, a year ago.
Revenue during the quarter dropped 3.44 percent to $834.89 million from $864.66 million in the previous year period. Gross margin for the quarter expanded 63 basis points over the previous year period to 44.17 percent. Total expenses were 95.39 percent of quarterly revenues, up from 94.87 percent for the same period last year. That has resulted in a contraction of 52 basis points in operating margin to 4.61 percent.
Operating income for the quarter was $38.51 million, compared with $44.36 million in the previous year period.
However, the adjusted operating income for the quarter stood at $50.15 million compared to $54.83 million in the prior year period. At the same time, adjusted operating margin contracted 33 basis points in the quarter to 6.01 percent from 6.34 percent in the last year period.
"While we were disappointed with our merchandise sales in the first quarter, we were very pleased with the excellent performance of our Cabela's CLUB Visa program and our focus on expense management, which continued to provide meaningful contributions to profitability," said Tommy Millner, Cabela's chief executive officer. "Similar to broader retail industry trends, we continued to experience challenging traffic patterns in the first quarter. Our growth in average ticket was more than offset by continued decreases in transactions."
Working capital increases
Cabelas Incorporated has recorded an increase in the working capital over the last year. It stood at $4,440.88 million as at Apr. 01, 2017, up 22.82 percent or $825 million from $3,615.88 million on Apr. 02, 2016. Current ratio was at 3.03 as on Apr. 01, 2017, up from 2.46 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 320 days for the quarter from 640 days for the last year period. Days sales outstanding went down to 288 days for the quarter compared with 530 days for the same period last year.
Days inventory outstanding has decreased to 87 days for the quarter compared with 161 days for the previous year period. At the same time, days payable outstanding went up to 56 days for the quarter from 51 for the same period last year.
