Cabela's 2010 direct sales revenue drops 5.5%

Outdoors retailer Cabela's fiscal fourth-quarter revenue from direct sales increased 0.5% year-over-year to $386 million. However, revenue in that sector dropped 5.5% during the full year to $999.8 million, compared with the prior fiscal year.

The company's fiscal Q4 revenue from retail stores increased 11.4% year-over-year to $479 million, and revenue in the category increased 1.7% for the full fiscal year, which ended January 1, to $1.4 billion.

Thomas Millner, CEO of Cabela's, cited “longer than average wait and response times while placing orders” as reasons for the company's direct struggles. He added on an earnings call that the revamped cabelas.com website and new CRM system at call centers should improve performance.

Millner said the company also plans to open new stores beginning next year.

“The investments [we made] in 2010 were significant contributors to our success," he said. "This success is increasing our confidence in accelerating new store deployment."

The multichannel retailer reported overall fiscal Q4 revenue of $934 million, an 8.4% increase compared with the previous fourth quarter. For its full fiscal year, the Sydney, NE-based company saw revenue of $2.7 billion, a 1% increase compared with fiscal 2009.

The company's net income for the full fiscal year grew 126% year-over-year to $112.1 million. In fiscal Q4, net income was $59.9 million, a 14.3% increase compared with the same period of the prior year.

Cabela's full-year 2010 operating income increased 102% to $186.8 million, while operating income in the fiscal fourth quarter was $103,513, up 251% from the previous fiscal Q4.

Revenue from the company's financial services business increased 27.8% year-over-year in fiscal Q4 to $58 million. It grew 33% to $227.7 million for the full year.