Specialty retailer Cabela’s reported 16.6% rise in net income to $49.9m for its third-quarter, compared to $42.8m last year.

The chain’s total revenue increased 14.8% to $850.8m.

The third-quarter comparable store sales increased 3.9%, which is the eighth consecutive quarter. Excluding firearms, comparable store sales increased 5.3%.

Retail store revenue increased 20.8% to $550.9m while direct revenue increased 0.9% to $198.6m. Financial Services revenue increased 14.5% to $98.4m.

Cabela’s chief executive officer Tommy Millner said although direct revenue increased for the fourth consecutive quarter, the results fell short of company’s expectations.

"These results were caused by a deceleration in ammunition sales and Internet traffic, lower average ticket and a more cautious consumer.

"Since we expect these trends to continue, our Direct business in the fourth quarter is anticipated to decline at a mid-single digit rate," Millner added.

During the third quarter, 14 of our 18 next-generation stores were open for the full period and outperformed our legacy store base by approximately 50% in sales per square foot and approximately 60% in profit per square foot.

Following this, the retailer plan to expand retail square footage at a low to mid-teens rate over the next several years with company’s next-generation and outpost store formats.

Cabela’s Incorporated is a specialty retailer of fishing, hunting, camping and other related outdoor equipment.

The product portfolio includes camping gear and equipment, casual and outdoor apparel, footwear, fishing and marine equipment, gifts and home furnishings, hunting and shooting equipment, auto equipment, and home and cabin products.These products are sold through recognized and company-owned brand Cabela’s.