Few companies benefit more hunting, fishing and outdoor retailer Cabela's (CAB.N) a record number of gun sales in the United States than.
Its shares more than 67% in the past year, in large part because of what the company called "unusual" after mass shootings in Colorado and Connecticut firearms and ammunition requirements. FBI background checks on gun buyers - that is the best retail gun sales agents - is up nearly 29%, compared with the end of last June, a total of 11.4 million.
But for firearms sales frenzy, an estimated 20% Cabela's has jumped in the past 12 months, analysts and fund managers cite another reason for the company's success are: the use of customer data. They say it should allow stocks to rise further in the overall growth of a single gun sales.
The use of data to improve retail income is very common. But experts say, Cabela's, a $ 4.7 billion market cap of the company, its roots dating back to the direct mail business selling fishing flies that Dick and Mary CABELA start on their dinner table in 1961, with the most advanced customers, tracking and analysis programs in the industry.
Therefore, Cabela's sales in its 44 stores an average of $ 370 per square foot, while the typical big box sporting goods store close to the average of $ 200 per square foot, according to Reid Anderson, in the North of the capital markets equity research supervisor. Five small, so-called "next generation" Cabela's store - between 80,000 and 100,000 square feet - in 2012 sales of $ 500 per square foot, he said.
"They have a message in camping or hunting for people who are the best flow," Anderson said. "They may live in remote Wyoming, but Cabela's to know exactly how much they spend on an annualized basis, their data to their precision positioning in the industry like no one shop."
Although the data itself does not isolate the company from any economic downturn, of course, analysts say, Cabela's a high quality service model similar to the upper end retailers such as Nordstrom (JWN its bundled data plan to beat its competitive strength . ?). When it reports earnings Thursday, Cabela's is expected to show among retailers and professional median was 13.4%, compared with last year's earnings per share growth of 32%, according to Thomson Reuters data.
Data Integration
While Amazon (AMZN.O) may have mastered the so-called online sales proposal, Cabela company has decades of customer data, allowing it to open a 200,000-square-foot store at light densely populated areas, and to understand what their Finger Art approximately 225,000 products portfolio that will make it profitable. Many of these projects - from a rifle to kayaking - is tough, even impossible to buy online, limiting competition from Amazon.
Begin collecting data customers, whether in-store, online or over 100 directories from a company's annual publication, were lured to join Cabela's Club Rewards loyalty program or registered Club Visa Card. Will prompt customers to use accumulated points, at checkout, creating a positive feedback loop.
All in all, 29% of the company's sales by Cabela's to use their credit cards issued by the company 10% of income state-owned banks, known as the world's most important banks and accounts. Dick's Sporting Goods (DKS.N) and Target (TGT.N) and other competitors, by comparison, does not have its own bank.
"This is by far the easiest and best loyalty incentive, I've seen," Anderson said, noting that customers do not purchase rebates or face other restrictions.
2007, Cabela company launched a new data analysis procedures, built-in Teradata Corporation (TDC.N), from across all retail channels, integrated digital. The system allows people in the marketing department, said the next morning, to access a single day's sales data, as well as the launch of e-mail marketing campaign to stimulate sales. Previously, this process has taken several days.
Few retailers simplify their data to the same extent that marketing professor Jeff Tanner at Baylor University study retailers use the data.
"Problem, which is an example of Wal-Mart, as a separate business, which makes data integration is very difficult, they treat a variety of channels," Tanner said. An unnamed retailer Tanner study describes a meeting between executives, each with a different number on market penetration, resulting in a series of conflicting conclusions. The Target Company has the most similar data collection and modeling of attention, although it is not at the same level Cabela's, he said.
Tanner said, online, at the same time, Cabela's inspection order customers place items in their baskets how it affects the probability of purchase. For example, a customer started to attract coyotes predators, such as hunting call a basket showed a particular hunt. You are then prompted customers to buy light camouflage can be worn throughout the year (rather than camouflage deer hunting, which is only in the winter) or a red filter, helping hunters spot coyotes at night spotlight.
Growth prospects
Cabela's ability seems to know at all times what their customers want, help the company to become "the core of their lifestyle," Mulholland's $ 6.3 million fund manager Matthew 25 Mark said. Mulholland started buying shares of around 6 $ in late 2008 - to him about 1000% return, because - and in the last 30 days have been added to his position in anticipation of the company's shares will continue to see In the mid-1990s, the percentage of young people grow in the coming years. The company's second-largest position, his fund, behind Apple Inc.
Northland Capital Markets analyst Anderson, has a target price of $ 80 a share, more than 23 June of the market closing at $ 65.80 jumped 20% and nearly 10% higher than Wall Street's average price target $ 73.50.
Overall, compared to the rate of eight analysts covering the company to buy or strong buy, 5 hold rating on the company, according to Thomson Reuters data.
Should strengthen customer loyalty in the long run, Nemer who owns shares of stocks outperform rating, Wells Fargo (WFC.N: Quote) analyst Matt said.
"Stocks are absolutely sensitive to short firearms data," Nemer said. The overall rate of gun sales "will slow down, but we all know that it's baked into the stock. Guns are not always jump 30 percent."
 



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