* Q3 EPS $0.28; Street view $0.18
* Raises full-year sales, profit forecasts
* Holiday quarter raises analyst concern
* Shares down 1 pct
(Adds revenue, forecast, analyst comment, byline)
By Brad Dorfman
CHICAGO, Oct 27 Cabela's Inc (CAB.N), an
outdoor gear retailer, posted better-than-expected quarterly
profit, but forecast earnings that would include a weaker
holiday quarter than analysts expected, sending its shares down
Cabela's sells equipment and apparel for outdoor activities
such as hunting and fishing through its stores, a catalog and
on the Web.
The company's revenue has gotten a boost from firearm sales
in recent quarters. It has also been cutting inventory,
reworking how it staffs stores and seeking other ways to trim
But gun sale comparisons will get tougher and the company
also has a tougher holiday season comparison than some others
as it was driving traffic in 2008 while other retailers were
hit hard by the recession, J.P. Morgan analyst Christopher
Horvers said in a research note.
The company said it now expects full-year earnings to
increase at least at a mid-single digit rate, compared with its
previous forecast for flat earnings.
But Horvers noted this implies earnings of 71 cents a share
in the holiday quarter, below the average analyst estimate of
Net income in the third quarter ended Sept. 26 was $18.8
million, or 28 cents per share, up from $9.7 million, or 15
cents per share, a year earlier.
Analysts, on average, had expected 18 cents per share,
according to Thomson Reuters I/B/E/S.
Revenue rose 2 percent to $624.3 million, slightly ahead of
the average analyst forecast of $623.4 million. Sales at stores
open at least a year rose 3.5 percent.
Cabela's said it now expects overall sales and same-store
sales to rise in the mid-single digits this year, compared with
its previous guidance of a low-single-digit increase.
The company said it will need to provide an additional $200
million to its financial services unit in the first quarter of
2010. But it said it has generated excess cash in 2009 to meet
Cabela's shares were down 15 cents at $14.45, after rising
as high as $16 earlier in the session.
(Reporting by Brad Dorfman; editing by John Wallace, Dave