Cabelas (CAB) has reported 26.31 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $58.06 million, or $0.84 a share in the quarter, compared with $78.79 million, or $1.14 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $72.52 million, or $1.05 a share compared with $86.81 million or $1.26 a share, a year ago. Revenue during the quarter dropped 4.94 percent to $1,338.30 million from $1,407.83 million in the previous year period. Gross margin for the quarter contracted 52 basis points over the previous year period to 38.89 percent. Total expenses were 91.58 percent of quarterly revenues, up from 90.98 percent for the same period last year. That has resulted in a contraction of 60 basis points in operating margin to 8.42 percent.
Operating income for the quarter was $112.64 million, compared with $126.92 million in the previous year period.
However, the adjusted operating income for the quarter stood at $127.14 million compared to $139.43 million in the prior year period. At the same time, adjusted operating margin contracted 40 basis points in the quarter to 9.50 percent from 9.90 percent in the last year period.
"We were clearly disappointed with the fourth quarter results," said Tommy Millner, Cabelas chief executive officer. "Consistent with other retailers, we experienced challenging traffic patterns in the quarter. Our increase in average ticket was not enough to make up for a decrease in transactions. Similar to industry trends, we experienced strength in firearms and shooting-related categories primarily early in the quarter. Later in the quarter, firearms and shooting-related categories became challenging as we faced the headwind of lapping the impact that the San Bernardino tragedy had on these categories a year ago. We saw improved trends in apparel and other softgoods categories in the latter part of the quarter. We continue to be pleased with the performance and growth of our Cabelas CLUB Visa program."
Debt remains almost stable
Total debt of Cabelas remained almost stable for the quarter at $4,742.45 million, when compared with the last year period. Total debt was 52.87 percent of total assets as on Dec. 31, 2016, compared with 56.01 percent on Jan. 02, 2016. Debt to equity ratio was at 2.36 as on Dec. 31, 2016, down from 2.59 as on Jan. 02, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
