SIDNEY, Neb. — Continued strength of firearm sales helped propel second-quarter results at Cabela’s, which reported net income $44.6 million for the three-month period ended June 29, just beating Wall Street's prediction, compared to $33.9 million in the year-ago period.
The outdoor goods retailer also reported that its second-quarter net income surged 31% on a 10.5% rise in same-store sales. Revenue rose 21% to $756.8 million from $627.3 million. Direct revenue increased 13.7% to $180.1 million.
"This strong showing reflects excellent performance by our next-generation stores and our omnichannel marketing efforts," said Tommy Millner, Cabela's CEO. "Retail expansion continues as a highlight. Our next-generation stores provide the combination of exceptional customer experience and great use of retail space. These next-generation stores continue to yield sales and profit per square foot an extraordinary 40+% better than our legacy stores. Additionally, our legacy stores continue to show improvement in revenue and profit per square foot themselves. We are excited as we continue to accelerate retail square footage expansion."
The 10.5% increase in comp store sales is the seventh consecutive quarter of comp store sales improvement. Excluding firearms, comp store sales increased 9% with comp store sales increasing in 32 of 33 stores and in 10 of 13 merchandise subcategories. In addition to firearms and shooting, hunting apparel, archery and optics were particularly strong.
"Direct revenue increased for the third consecutive quarter," Millner said. "We have made substantial progress in improving our Direct business with more improvement to come. During the quarter, we increased our marketing efforts behind special events such as Spring Great Outdoor Days and Father's Day. In the second half, our omnichannel initiatives will be focused on seamlessly providing the best possible customer experience across all sales channels."
The Cabela's CLUB Visa program had another solid quarter. During the quarter, growth in average active credit card accounts accelerated to 10.7% due to increases in new customers, primarily in the retail and Internet channels.
"We are certainly pleased with our strong se