After stating in its second-quarter earnings report that it had “identified meaningful savings” in its company expenses, Sidney, Neb.-based outdoor retail chain Cabela’s Inc. has seemingly taken action.
Local news organizations have reported that Cabela’s has laid off nearly 70 employees, or about 4 percent of its corporate staff, as part of a restructuring and reduction in workforce. According to those reports, most of the employees are located in the retailer’s Sidney headquarters, though Cabela’s also made some cuts in Lincoln, Neb., and Denver.
The company did not respond to requests for comment.
For its second quarter of fiscal 2015, Cabela’s saw a dip in earnings, even while revenue rose during the period. The company said that net income was $40.1 million, compared with $43.5 million in the year-ago quarter. And earnings per diluted share were 56 cents, down from 61 cents the prior year.
Total revenue, meanwhile, increased 10 percent to $836.3 million, led mainly by growth in its brick-and-mortar retail stores, which recorded a 14 percent jump in sales to $570.1 million.
In a statement about the Q2 earnings, Cabela’s CEO Tommy Millner said, “While we have benefited from cost savings over the past year, we did de-leverage expenses in the second quarter by 130 basis points. Our deleverage was the result of new store costs, investments in labor and higher incentive compensation cost. Recently, we completed a detailed review of our expense base and have identified meaningful savings in the balance of 2015 and full-year 2016.”
The company is due to report its third-quarter results on Oct. 22.