Financial Reports: Cabela’s, Guitar Center, J. Jill, Drugstore.com

Record First-Quarter Sales for Cabela’s
First-quarter sales at Sidney, NE-based outdoor gear merchant Cabela’s (NYSE: CAB) increased 12%, to a record $350.6 million. But the increase wasn’t enough to prevent a slip in net income, to $7.8 million from $8.0 million a year ago.

Direct revenue increased 11%, to a record $229.4 million for the three months ended April 2. Retail revenue increased 7%, to $97.2 million, but same store sales decreased 6%. Revenue from Cabela’s financial services unit increased 39%, to $22.9 million.

Guitar Center Net Up 35%
Westlake Village, CA-based cataloger/retailer Guitar Center (Nasdaq: GTRC), which mails the Musician’s Friend, Giardinelli, and LMI catalogs, reported a 35% jump in first-quarter consolidated net income and a 13% rise in consolidated net sales. For the three months ended March 31, the company netted $15.9 million on sales of $396.4 million.

Musician’s Friend direct response net sales increased 19%, to $91.5 million, even though the company said it is facing increased competition online.

Gross margins totaled 30% compared with 32% last year, reflecting a lower selling margin due to increased competitive pressure partially offset by a decrease in freight costs.

Net sales from Guitar Center stores increased 12%, to $294.7 million. Comparable store sales for the Guitar Center stores increased 5%.

Net sales from American Music stores increased 9%, to $10.2 million, primarily due to the acquisition of Karnes Music in the third quarter of 2004. American Music comparable store sales decreased 1%.

J. Jill Posts Loss
First-quarter net sales for Hingham, MA-based women’s apparel merchant J. Jill (Nasdaq: JILL) fell 2%, to $98.4 million for the three months ended March 26. The cataloger/retailer posted a $2.7 million net loss for the quarter, compared with net income of $2.2 million a year ago.

Breaking the numbers down by channel, retail revenue increased 12%, to $56.6 million. Internet sales rose 13%, to $21.5 million. Catalog sales, though, tumbled 35%, to $19.3 million.

“The first quarter of fiscal 2005 was a disappointing quarter for J. Jill,” president/CEO Gordon Cooke said in a statement. “Our early spring merchandise assortments and marketing campaigns did not resonate well with our customers, and as a result, productivity levels in both channels were below our expectations.”

Drugstore.com Posts Wider Loss
Although a 24% rise in mail-order pharmacy sales contributed to the overall first-quarter sales growth overall at Bellevue, WA-based Drugstore.com (Nasdaq: DSCM), it wasn’t enough to keep the Internet retailer from posting a wider net loss.

Drugstore.com posted an 18% year-over-year increase in net sales, to $99.6 million for the three months ended April 3. Gross profit rose 12%, to $20.2 million. But the company nonetheless reported a first-quarter net loss of $5.0 million, compared with a $4.6 million loss last year. The earnings before interest, taxes, depreciation, and amortization (EBITDA) loss was $1.3 million for the first quarter, compared with $961,000 last year.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.