Cabela's can't cobble together growth Source
In its own recently reported earnings, Cabela's saw a 4% drop in retail sales at its stores and a 12% decline online as comparable-store sales fell 6.5% from last year. As a result, profits plummeted 26% to $58 million, and it makes you wonder if Bass Pro Shops isn't reconsidering its offer.
Moreover, it may be stuck having to operate a bank since Cabela's side deal with Capital One Financial has also encountered obstacles. Last month, Capital One all but confirmed its $200 million deal to buy Cabela's credit card business (which is chartered as a bank) was finished, as it expected to withdraw its buyout application or the
Comptroller of the Currency would deny it. There's been no news since, and Capital One has not responded to requests for an update on the status of its application.
Between its own declining fortunes, an inability to unload its credit business, a weakening market for its merchandise, and yet another competitor that may declare bankruptcy, Cabela's acquisition by Bass Pro Shops is looking dimmer by the day.
I would say the declining market overall for sporting goods is probably why they're trimming back on accounts. Cleaning up the books for a potential fire sale if something else happens and the other shoe drops. Keeping accurate books on the credit side that Cabela's owns it's own bank that they are/were hoping to sell off to Cap1 in the process or shortly after the merger with BPS.
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