Cabela’s (CAB) shares climbed 10.5% on Tuesday after the outdoor retailer said it expects to top Wall Street’s first-quarter estimates, thanks in part to projected increases in direct revenue and same-store sales.
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Shares were up $5.66 to $59.56 in early morning trading. The stock was already up 29% as of Monday’s close.
Cabela’s, which sells hunting, fishing, camping and related outdoor merchandise, anticipates per-share earnings will be 10 cents to 15 cents above current consensus estimates of 46 cents for the current quarter.
The Sidney, Neb.-based company added that it expects comparable-store sales to increase at a percentage rate in the high-teens or more, while direct revenue should see percentage growth in the low- to mid-teens. Over the past year, revenue has improved amid stronger demand for firearms.
“During our fourth quarter conference call, we indicated our business had accelerated into the first quarter. We are pleased to report that this trend has continued through today,” CEO Tommy Millner said in a statement, adding that current sales growth is coming from most of the company’s merchandise categories.
Cabela’s said it will review its retail square-footage expansion plans, enhancements to its Cabela’s Club loyalty program, growth of Cabela’s brand products and improvements in e-commerce capabilities during its analyst/investor day set for Wednesday.