Cabela's (CAB) Declares Plans to Open Second Store in Utah - Analyst Blog

Cabela's Incorporated (CAB) announced plans to open a second store in Utah. The construction of the 72,000-square-foot retail store in Farmington, UT, which is in the greater Salt Lake City area, is slated to begin in 2015. This Sidney, NE-based company expects to open its store in spring 2016.

This store will be about half the size of Cabela's first store in Lehi, UT, opened in 2005, covering an area of 150,000 square feet. Moreover, the company announced that it will construct a 600,000 square foot distribution center in Tooele that should be fully operational by next summer.

This leading specialty retailer and the world's largest direct marketer of hunting, fishing, camping and related outdoor merchandise plans to give its new store a well-designed blueprint to have customers an outdoor-like environment. This includes log construction, stonework, wood siding, mountain replica, an aquarium and wildlife displays.

The store will also include an indoor archery range and tech room, gun library, bargain cave, deli and fudge shop. Moreover, the store's staff will conduct various educational seminars and give demonstrations to attract new customers and create awareness about these outdoor activities.

The company's new store will require approximately 175 full-time, part-time and seasonal employees.

In third-quarter fiscal 2014, Cabela's opened six stores in the markets of Buffalo, NY; Atlanta, GA; Portland, OR; and Ontario and British Columbia in Canada.

Given the robust performance of its new stores, the company remains on track to open 13–15 outlets per year in the future. For 2015, the company has plans to open 14 stores, of which 2 will be opened in the first quarter, 5 in the second, 4 in the third and the remaining 3 in the final quarter.

The company's store-expansion drive reflects its initiatives to expand in regions that have considerable growth potential. Moreover, the company looks for opportunities to expand its store base to effectively penetrate into its target markets and generate healthy sales.

Currently, Cabela's has a Zacks Rank #4 (Sell), reflecting its disappointing third quarter performance, wherein both the top and bottom lines fell short of the Zacks Consensus Estimate and has been witnessing downward estimate revision.

Other Favorably Ranked Stocks

Better-ranked stocks worth considering in the retail sector include Build-A-Bear Workshop Inc. (BBW), The Michaels Companies, Inc. (MIK) and Office Depot, Inc. (ODP). While Build-A-Bear Workshop and The Michaels Companies sport a Zacks Rank #1 (Strong Buy), Office Depot carries a Zacks Rank #2 (Buy).

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