Outdoor sporting-goods marketer Cabela’s reported increased profits in the fourth quarter of 2005 due to strong sales performance in its direct marketing, retail and financial services businesses.
For the quarter, revenue in Cabela’s direct-marketing division increased $26.9 million to $404.9 million, a 7.1% hike over sales in the same quarter last year. Quarterly retail revenue rose 40.3% year-over-year to $240.9 million, and financial services rose 23.9% to $30.2 million.
Cabela’s total revenue for fiscal 2005 rose 15.7% to $1.8 billion, from $1.56 billion in 2004. Direct marketing contributed $1 billion in 2005, a 6.9% increase over DM sales in 2004.
Cabela’s president and CEO Dennis Highby said reaching $1 billion in direct sales was a “major milestone” for the company. “Cabela’s powerful multichannel model continues to provide us with a competitive advantage, and we are committed to building on our leadership position in the marketplace.” He said Cabela’s plans to open five new retail stores in 2006, bringing the total to 19 brick-and-mortar outlets.
