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Shares of Cabela’s Inc. (CAB - Analyst Report) shot up by 13% to reach a new 52-week high of $60.98 on Tuesday, Mar 12, gaining momentum from the company’s raised guidance ahead of its annual analyst/investor meeting.

This Zacks Rank #2 (Buy) leading specialty retailer of hunting, fishing, camping, and outdoor related merchandise, eventually closed at $60.65, recording a strong year to date return of 41.6%.

Cabela’s stated that it now expects first quarter 2013 comparable-store sales to rise in the high-teens rate. Moreover, the company now expects direct revenue to increase in a low to mid-teens rate, which is a big positive.

The company’s direct business has long been grappling with declining revenue trends. In 2012, direct revenue declined 2.7% year over year to $930.9 million while operating margin contracted 130 basis points to 16.7%. However, in the fourth quarter of 2012, direct revenue improved by 1.7% year over year to $385.5 million but operating margin declined 200 basis points to 16%.

Going forward, Cabela’s now projects its earnings per share to surpass the Street expectations by 10 cents to 15 cents.

Boasting a sturdy balance sheet, feasible strategy and operating efficiencies, Cabela’s offers its investors one of the strongest growth profiles. Cabela’s next-generation store format, multi-channel strategy and seasonal product assortments enable it to focus on boosting stores productivity and sales per square foot while lowering its labor costs.

In addition, the company aims to capitalize on the under-penetrated markets and unveiled its new ‘Outpost’ store format. The relatively smaller size store will provide shoppers with Cabela's retail experience.

The company remains on track to open 6 domestic next-generation stores, 1 Canadian next-generation store and 3 Outpost sores in 2013. In 2014, the company plans to open 8 next-generation stores.

Further, Cabela's CLUB Visa program continues to register strong growth, reflecting rise in average active accounts with improvements in delinquencies and net charge-offs along with lower funding cost.

Other Stocks to Consider

Beside Cabela’s, other stocks worth considering in the non-food retail, wholesale sector include Macy’s Inc. (M - Analyst Report) and Big 5 Sporting Goods Corp. (BGFV - Analyst Report), both of which hold a Zacks Rank #1 (Strong Buy) and are expected to continue with the upbeat performance. Hot Topic Inc. carrying a Zacks Rank #2 (Buy) is also worth considering.

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