OMAHA, Neb. (AP) — Cabela’s Inc. reported a 6 percent decline in its second-quarter profit Thursday, but didn’t offer any new clues about its long-term strategic plans.
The Sidney, Nebraska-based company reported net income of $37.8 million, or 55 cents per share. That’s down from last year’s $40.1 million, or 56 cents per share.
But this year’s results were weighed down by restructuring charges of $959 million as Cabela’s works to reduce expenses. Excluding those, the outdoor gear seller would have reported earnings per share of 59 cents.
The 10 analysts surveyed by Zacks Investment Research expected earnings of 61 cents per share, on average.
Cabela’s is in the midst of a strategic review that began in December after an activist investor began urging it to consider selling all or part of the company. The retailer said Thursday that review is ongoing, so officials won’t comment on it.
Activist investment firm Elliott Management began pushing for significant changes at Cabela’s last October. Elliott owns 7.4 percent of Cabela’s shares and holds options to buy another 3.8 percent.
Cabela’s decisions are being watched closely in its hometown of Sidney. The company employs about 2,000 people in the western Nebraska town of about 7,000.
Cabela’s CEO Tommy Millner said the company is successfully limiting expenses. So he reiterated Cabela’s outlook for high-single-digit or low-double-digit growth in the company’s full year earnings per share.
Stifel analyst Jim Duffy said Cabela’s reported shrinking profit margins in the quarter as it offered more discounts to boost sales. That’s not sustainable, but Duffy said Cabela’s cost–cutting in this quarter helped offset the smaller profit margin.
Cabela’s posted revenue of $929.9 million in the period, up 11.2 percent year over year, and topping Street forecasts. Seven analysts surveyed by Zacks expected $911.5 million.
In morning trading, Cabela’s shares fell 4.3 percent, or $2.32, to $51.51.