UPDATE 2-Cabela's raises revenue outlook, net profit falls

Thu Apr 30, 2009 11:08pm BST

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* Q1 adjusted EPS beats Street by two cents

* Q1 revenue inches up 0.7 percent

* Raises revenue outlook for 2009 (Recasts, adds estimates, sales detail and byline)

SAN FRANCISCO, April 30 (Reuters) - Cabela's Inc (CAB.N: Quote, Profile, Research) on Thursday said its first-quarter net profit fell because of bad debts at its financial services arm, but the retailer of outdoor gear raised its revenue outlook for the year.

Shares in the company initially jumped nearly 5 percent, but then settled back to closing price levels.

Cabela's, whose stores and catalogs offer equipment and apparel for hunting, fishing and other outdoor activities, now expects 2009 revenue to be unchanged from last year, a brighter outlook than the slight decline it had predicted.

Revenue rose 1 percent to $539.5 million in the first quarter, above the $517.2 million that Wall Street had been expecting. Sales at retail stores open at least a year jumped 8.2 percent, accelerating from the previous quarter.

"While bad debts at World's Foremost Bank have increased due to the economy, we are adjusting pricing and implementing new products to help mitigate the impact throughout the year," said new chief executive Thomas Millner, referring to the company's wholly owned financial subsidiary. Continued...