Cabela's shares fall on weak credit-card business
Shares of Cabela's (NYSE: CAB) stock fell nearly 6 percent after the company reported in an SEC filing that its credit card business' gross charge-offs rose in July.
Gross charge-offs -- accounts receivable that will likely not be collected and be written off -- rose to 4.62 percent from 2.9 percent in July of last year, according to the filing.
Credit Suisse analyst Paul Lejuez wrote in a client note, "These credit metrics are increasingly important to monitor given their sensitivity to the weak consumer environment and the significant contribution of Cabela's credit card business to overall profitability. The credit card business is still deteriorating and we expect this to cause continued pressure on overall results."
He reiterated his "underperform" rating on the stock.
Cabela's shares fell $0.86, or 5.51 percent, to close at $14.74 on Aug. 17. The stock has traded between $4.18 and $17.73 during the past 52 weeks.
--Compiled by Wendy Geister
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