Cabela's profit falls 35 percent on bad debt

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By The Associated Press

SIDNEY — Outdoor outfitter Cabela’s says its profits fell 35 percent in the second quarter because the level of bad debt its credit card division had to write off increased and its costs increased.

Cabela’s said Thursday it generated $7 million net income during the second quarter of this year. That’s down significantly from the $11 million net income Cabela’s reported during the same period a year ago.

The Sidney, Neb., company says its total revenue grew nearly 17 percent to $526 million. But revenue from its credit unit fell 7 percent to $38 million.

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(LJS file)

(LJS file)

Cabela’s says its costs jumped nearly 19 percent to $511 million.

Same-store sales at Cabela’s giant retail outlets slipped nearly 2 percent during the quarter.