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What: Shares of outdoor retailer Cabela's (NYS: CAB) were on a steep hike today, gaining 14% after the company reported a strong second quarter.
So what: It seems that, lately, the demand for optimistic economic views have vastly outstripped the supply. So the report from Cabela's is particularly encouraging, because CEO Tommy Millner said he's "optimistic about [the company's] prospects for the remainder of 2012 and 2013." But you don't have to bank on the future, because the current quarter was pretty darn impressive -- Millner also said:
Every key line of our income statement benefited. Retail and Direct channel revenue, merchandise margin, operating margin, expenses as a percentage of revenue, inventory turns, earnings per share and return on capital all improved.
By the numbers, revenue climbed 12% year over year on a 4.7% gain in same-store sales. Profit growth was particularly impressive as earnings per share clocked in at $0.47, an increase of 52% from 2011. Wall Street analysts were expecting just $0.39 in per-share profit for the quarter.
Now what: As the quote from Millner above suggests, the good times may continue for Cabela's in the quarters ahead. He noted that, with half the year in the bag, it now looks like full-year 2012 earnings will exceed the company's previous guidance by 1% to 3%. Additionally, he pointed out that the three new stores that the company opened during the year topped internal targets, which, he said "reinforces [the company's] decision to accelerate retail store expansion."
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The article Why Cabela's Shares Jumped originally appeared on Fool.com.
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