Cabela's Inc.: Update After Quarterly Earnings
Shaun Currie, CFA
Shaun Currie, CFA
Cabela's Inc.: Growth + Value = 50% Upside
Shaun Currie, CFA • 17 Comments
Shaun Currie, CFA • 17 Comments
Yesterday, 11:00 AM
- Cabela's (NYSE:CAB) is lower after same-store sales came in at 1.5%, below the 1.9% pace expected by analysts. Strong demand for firearms helped push same-store sales into positive territory for the first time in several years.
- Merchandise gross margin fell 290 bps to 32.9%.
- The company didn't issue any details on the strategic review underway.
- Shares of Cabela's are down 3.73% to cut into the gains piled up over the last month.
- Previously: Cabela's misses by $0.02, beats on revenue (July 28)
Yesterday, 6:32 AM
Tue, Apr. 19, 10:57 AM
- Cabela's (CAB +5.8%) is on the move after Reuters reports things are heating up with a potential bid from Bass Pro Shops for the company.
- Sources indicate that Bass Pro Shops has partnered with Goldman Sachs' private equity arm on putting together a bid.
- Cabela's already trades with a bit of a takeover premium baked in.
- Now read Cabela's Should Consider Going Private
Thu, Feb. 18, 1:08 PM
- Cabela's (CAB -5.4%) trades lower even after reporting Q4 results ahead of consensus estimates.
- The lack of any real update by the company on its sale process and strategic review may be disappointing investors.
- The looming presence of activist investor Elliott Management has increased the speculation over Cabela's future.
- Previously: Cabela's beats by $0.05, beats on revenue (Feb. 18)
- Previously: More on Cabela's Q4 (Feb. 18)
Thu, Feb. 18, 7:39 AM
- Cabela's (NYSE:CAB) reports comparable-store sales fell 4.9% in Q4.
- U.S. comp decreased 3.5%.
- Retail store revenue grew 14.3% to $926.5M.
- Direct revenue increased 0.5% to $351.5M.
- Financial services revenue expanded 15.7% to $131.1M driven by increases in interest and fee income as well as interchange income.
- SD&A expense rate dropped 130 bps to 29.5%.
- Non-GAAP operating margin rate declined 30 bps to 9.9%
- Net charge-offs +2 bps to 1.76%.
- FY2016 Guidance: Revenue: high-single-digit growth; Diluted EPS: high-single-digit or low-double-digit growth
Tue, Feb. 16, 11:02 AM
- Specialty retail stocks are breaking out of the pack to record strong gains.
- A number of economists have revised their forecast upward on the part of consumer spending tied to low-ticket household/clothing/recreational items.
- The Container Store (TCS +10.4%), Zagg (ZAGG +7.9%), Pier 1 Imports (PIR +4.2%), Chico's (FAS +3.4%), Five Below (FIVE +3%), and Destination XL Group (DXLG +5.5%) are notable gainers.
- The sporting goods sector is also showing strength - Hibbett Sports (HIBB +3.6%), Cabela's (CAB +3.7%), Dick's Sporting Goods (DKS +2.4%), and Big 5 Sporting Goods (BGFV +1.9%) are all ahead of broad market averages.
Tue, Jan. 5, 11:12 AM
- Smith & Wesson (NASDAQ:SWHC) is up 12% on a huge volume spike to reach a post-IPO high.
- The company lifted guidance last night and the gun debate has been raging this week with President Obama poised to take some executive action refinements to gun control regulations.
- SWHC reached a high of $26.64.
- Sturn Ruger (NYSE:RGR) is also ripping, up 7.1% to a 52-week high off the same enthusiasm that short-term gun and ammo demand could pick up.
- Vista Outdoor (VSTO +4.9%) and Cabela's (CAB +1%) are also catching bids off the gun control focus, while rallies in Dick's Sporting Goods (DKS +1.3%), Hibbett Sports (HIBB +1.3%), and Sportsman's Warehouse (SPWH +2.6%) look more speculative based off the actual impact of gun sales on total revenue.
- Previously: Obama set to roll out gun control actions today (Jan. 05 2016)
- Previously: Smith & Wesson hikes guidance; shares +3.7% (Jan. 04 2016)
Dec. 2, 2015, 9:54 AM
- Sporting goods stocks are all ahead of broad market averages with some M&A speculation in the background.
- Cabela's (CAB +1.4%) has confirmed it will explore strategic options which could include a combination with another chain or set off other companies on a similar plan. Many analysts think the market is oversaturated on a square footage basis.
- Gainers: Big 5 Sporting Goods (NASDAQ:BGFV) +1.5%, Dick's Sporting Goods (NYSE:DKS) +1.0%, Hibbett Sports (NASDAQ:HIBB) +0.7%, Sportsman's Warehouse Holdings (NASDAQ:SPWH) +1.2%.
- Previously: Cabela's to evaluate strategic options (Dec. 02 2015)
Nov. 20, 2015, 10:09 AM
- Strong earning reports from Foot Locker (FL +7.9%), Hibbett Sports (HIBB +4.7%), Sportsman's Warehouse Holdings (SPWH +19.6%) seem to be reverberating around the sportswear/footwear sector.
- Lululemon (LULU +5.3%), Big Five Sporting Goods (BGFV +2.4%), Skechers (SKX +4.4%), Columbia Sportswear (COLM +4.1%), Under Armour (UA +3.6%), V.F. Corp (VFC +1.7%), Steven Madden (SHOO +3.5%), Crocs (CROX +2.2%), and Wolverine Worldwide (WWW +3.3%) are all solidly higher.
- Cabela's (CAB +7.2%) is higher off more merger speculation, while Nike (NKE +5%) gave investors plenty of reasons to smile last night on the buybacks and dividend front.
- Dick's Sporting Goods (DKS -0.2%) hasn't joined the sportswear party quite yet as the company's large retail footprint continues to dampen enthusiasm.
Nov. 19, 2015, 5:58 PM
- Cabela's (NYSE:CAB) +8.5% AH following a Bloomberg report that it is fielding potential takeover interest and weighing whether to begin a sales process, and that rival Bass Pro Shops is working with JPMorgan Chase to help explore a bid.
- CAB is working with its regular advisers at Guggenheim Partners, which is reaching out to a small group of potential P-E buyers and strategic acquirers, according to the report.
- The report also says several buyout firms have expressed interest in a deal that may value CAB’s in the mid- to high $50s.
Nov. 19, 2015, 5:35 PM
Nov. 5, 2015, 3:08 PM| Nov. 5, 2015, 3:08 PM | 8 Comments
Oct. 28, 2015, 12:49 PM
Oct. 28, 2015, 10:02 AM| Oct. 28, 2015, 10:02 AM
Oct. 28, 2015, 9:12 AM
Jul. 23, 2015, 8:34 AM
- Cabela's (NYSE:CAB) reports consolidated comparable-store sales fell 0.9% in Q2.
- Retail store revenue was 13.9% higher to $570M, while direct revenue fell 7% to $137M.
- Strong demand for powersports, firearms, and ammunition helped to offset softness with some goods and apparel categories.
- An increase in promotional activity contributed to a 120 bp drop in Cabela's merchandise gross margin.
- Guidance: The company backs previous guidance for low-double-digit revenue growth and a high-single to low-double-digit EPS growth.
- Previously: Cabela's misses by $0.06, misses on revenue
- CAB -2.55% premarket to $50.40.
Cabela's, Inc. retails and markets hunting, fishing, camping and related outdoor merchandise. It offers products through its retail stores, the Internet and regular and special catalog mailings. The company operates through three reportable segments: Retail, Direct and Financial Services. The... More
Industry: Sporting Goods Stores
Country: United States
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