Jul. 31--Cabela's, the Sidney, Neb.-based outdoor outfitter, Thursday reported that profits increased 25 percent in the second quarter over a year earlier.

Same-store sales rose 6 percent, and revenue from the company's credit-card operation increased 15 percent.

Its stock closed Thursday at a 52-week high of $16.06. That's up $1.38 from Wednesday's close. Its lowest 52-week closing price was $4.38 on Nov. 20, 2008.

Tommy Millner, Cabela's CEO, said the increase in same-store sales was driven by hunting equipment and represented the third consecutive quarter of gains.

Profits rose to $9.12 million on revenue of $549.24 million in the quarter ending June 27. In the second quarter of 2008, profits were $7.28 million on revenue of $525.95 million.

Per-share earnings for the quarter were 14 cents this year, a 3-cent increase.

Revenue from the nationwide chain of retail stores rose 10.2 percent to $301.6 million. Financial services, which is the company-owned credit-card business, brought in $44.1 million. Catalog, phone and Internet sales declined 3.6 percent to $199.5 million.

The company's strategy, Millner said, is to control costs, generate cash and improve return on invested capital.

As part of that, the company decided against building a store in Greenwood, Ind., on land it owns. The decision resulted in a pre-tax, noncash impairment charge of $11.7 million related to the write-down of excess land, reducing earnings by 11 cents per diluted share in the quarter.

The company reduced general expenses -- selling, distribution and administrative costs -- by more than $2 million, from $194.71 million to $192.54 million.

For the full year, Millner said he expects total revenue growth and comparable store sales to increase by low, single-digit percentages.

"As we look ahead into the third quarter, we are even more encouraged by the favorable trends in our retail and direct segments and our ability to tightly manage costs," he said.

Contact the writer:

444-1183, christine.laue@owh.com

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