apparel

Cabela's Adds Luke Bryan Line

Cabelas

Cabela’s has hit its share of speed bumps lately, and is hoping to spark sales with a fan favorite: 32 Bridge, a new line of clothing in partnership with country star Luke Bryan.

The apparel line is for both men and women, and includes short-sleeve T-shirts, long-sleeve T-shirts and caps, and an effort to woo the intersection of country music and outdoor enthusiasts.

The name comes from Route 32 Bridge, crossing over the Flint River in Georgia and connecting two counties where the superstar grew up, and where he says he developed his own passion for fishing, hunting and the outdoors. Country superstar Bryan, who has been a Cabela’s brand ambassador since 2012, was Billboard’s 8th best-paid artist last year.

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Meanwhile, Cabela’s stumbled with its recent earnings announcement, announcing that comparable-store sales fell 11.2%, causing it to lower its earnings forecast for the year. Total revenue for quarter gained 4.1% to $886 million.

While the Sidney, Neb.-based company says it is pleased that sales in its newer-format stores continue to do well, outperforming its legacy stores by between 40 and 60% in both sales and profits, it concedes it is disappointed with the slower rebound in sales of both firearms and ammunition. 

Cabela’s competes primarily with other outdoorsy retailers, including Bass Pro Shops and the venerable LL Bean. But increasingly, other companies have been cutting in, including Under Armour, which sells an extensive line of hunting gear; and Dick’s Sporting Goods. 

While Dick’s has seen a decline in its hunting results, it’s betting on its new Field & Stream stores to help it better compete in the outdoor business. Deutsche Bank estimates the hunting and fishing business at about $34 billion per year, and says that while Cabela’s and Bass Pro Shops are the market leaders, they each have only a 9% share or so. That fragmentation leaves plenty for other brands. Dick’s currently has only three Field & Stream stores open, but expects to have 55 in the next three years, writes Deutsche its recent analysis of the company:

“Margins are likely to be lower than core stores due to the mix towards lower margin guns and ammo, but sales per foot should be higher due to those categories, as well as higher tickets in camping and other outdoor areas.” While it’s still early, “if it works, it should add to Dick’s growth rate over time.”

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