Cabela's reported results for the first quarter of fiscal 2008, including a 16% increase in total revenue and a 70% increase in operating profit, despite a 8.4% decline in same store sales. The retailer announced net earnings per share of $0.15, three times greater than the $0.05 analysts were expecting.
Cabela’s stock price fell as the company expects lower Q3 earnings, which is below the analysts’ consensus. The company expects an EPS of only $0.18-0.20, while the analysts were expecting $0.26.The net revenue for the quarter was $547 million, compared to analysts’ consensus of $557.54 million. The decrease in the forecast was mainly due to an unfavorable sales mix and a new advertising strategy. Further, sales of two of its stores that were opened last year have failed to meet expectations.