Cabela’s Net Income Soars
Third-quarter net income at outdoor sporting goods cataloger/retailer Cabela’s (NYSE: CAB) increased 61%, to $16.5 million for the three months ended Oct. 2. Revenue, meanwhile, grew 16% to $383.8 million.
Direct sales for the Sidney, NE-based company increased 4%, to $221.0 million; retail revenue increased 37%, to $140.5 million, despite a same store sales decline of 3.0%; and financial services revenue increased 40%, to $22.3 million.
As for operating income, operating income for the direct division fell 8%, to $32.6 million from $35.4 million a year ago. But retail operating income more than doubled, to $22.3 million from $9.4 million. Financial services operating income increased to $10.8 million from $5.5 million.
Zones Boosts Its Top and Bottom Lines
Net income at Renton, WA-based computer reseller Zones (Nasdaq: ZONS) skyrocketed 948%, to $1.4 million for the quarter ended Sept. 30, compared with $134,000 for the third quarter of last year. Net sales increased 15%, to $129.8 million from $112.7 million.
Consolidated outbound sales to small and midsize business, large customer accounts, and the public sector increased 19%, to $120.3 million. Sales to government buyers and other public sectr customers now represent approximately 14% of consolidated net sales.
Sales, Earnings Up at Design Within Reach
Newly public Design Within Reach (Nasdaq: DWRI) is making investors happy. The San Francisco-based modern furnishings cataloger/retailer reported a 46% jump in third-quarter net sales, to $30.1 million for the three months ended Sept. 25, compared with $20.6 million last year. Net earnings for the quarter were $906,000, up from $739,000 last year. Included in the third quarter of 2004 results was a noncash, stock based compensation charge of $149,000. Otherwise earnings from operations, excluding interest, taxes, and the deemed preferred stock dividend, were $1.4 million, compared with $760,000 for the comparable period of last year.
Direct sales (including sales through the phone and the Design Within Reach Website) increased 19%, to $12.0 million, due online marketing initiatives, such as keyword purchases and affiliate programs.
Revenue Slips, Losses Mount at Martha Stewart Omnimedia
Third-quarter revenue for New York-based Martha Stewart Omnimedia (NYSE: MSO) tumbled 24%, to $38.7 million. At the same time, the operating loss more than doubled, from $6.3 million last year to $16.2 million.
For the Internet/direct commerce segment, revenue fell 6%, to $6.2 million from $6.6 million last year. Increased sales from the Marthasflowers.com business weren’t enough to make up for declines in catalog sales. The division’s operating loss was $2.7 million for the third quarter of 2004, compared with $2.0 million a year ago. The company is winding down its catalog business; the final book will mail before the end of the fiscal year.