Cabela's Inc.'s (CAB) second-quarter 2011 earnings of $0.32 per share beat the Zacks Consensus Estimate of $0.27, and jumped 14.3% from the prior-year quarter. The quarter witnessed healthy revenue growth and profitability at its retail segment, sturdy performance at Cabela's CLUB Visa program, strong merchandise gross margin and increased market share.
Merchandise gross margin expanded 80 basis points to 36.7% during the quarter. Management reiterated its long-term goal of increasing the margin by 200-300 basis points, and continues to expect fiscal 2011 earnings to meet or beat consensus.
The company also remains focused on alleviating bad debt risk in its credit card business. The gradual improvement in the economy has lowered delinquencies and charge-offs.
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