Outdoor outfitter Cabela's (CAB) first-quarter results shot up on strong gun and ammunition sales, sending shares soaring nearly 16% in the stock market today.
The Nebraska-based outdoor retailer said same-store sales jumped 24%. Excluding firearms and ammunition, comparable sales grew 9%.
The retailer earned 70 cents in the quarter, up 75% from 40 cents in the earlier year and 11 cents above Wall Street views. Both earnings and same-store sales came in higher than the company's raised forecast from mid-March.
"Since the Newtown tragedy, you've had a huge spike in firearms and ammunition sales," said analyst Jim Chartier of Monness, Crespi, Hardt. "People feared gun-control legislation so they went out to buy guns and ammunition before legislation passed."