Outdoor equipment retailer Cabela’s showed a strong first quarter performance with a 73 percent increase in profit. According to the Washington Post, the company’s shares reached all-time highs briefly on Thursday following the announcement. At a jump to 70 cents per share, experts can be allowed a little confidence.
“First quarter results exceeded our expectations on every line of the income statement,” said CEO Tommy Millner. Market analysts expected the company’s shares to rise to 59 cents a share where Cabela’s expected a boost to possibly 62 cents. Overall, revenue rose to $802.5 million. The surge was attributed in part to the increased consumer demand for firearms and ammunition. While manufacturers work feverishly to keep products on the shelves, retailers are having problems finding stock. Many ammo aisles across the nation are empty of popular calibers such as .22 and 5.56 NATO. Millner reports that Cabela’s is keeping ahead of the competition because of its diverse supplier base. He also added that demand does not appear to be slowing.
“I think the honest answer is, I don’t know when it’s going to loosen up,” Millner said.
Firearm related purchases are not the full reason for Cabela’s Q1 windfall, the company is seeing revenue surges across the board in other product categories. Millner hopes that the high number of new customers will become repeat consumers, provided that Cabela’s keeps them coming back.