Cabela's Incorporated CAB reported mixed first-quarter 2016 numbers with earnings surpassing the Zacks Consensus Estimate, while revenues missing the same. Notably, this is the second consecutive quarter of earnings beat by the company. The company reported earnings per share of 43 cents that surpassed the Zacks Consensus Estimate of 37 cents and also increased 13.2% from the prior-year quarter. Cabela’s cost-saving initiatives and the robust performance by Cabela's CLUB drove the upside.Cabela's Inc. (CAB) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyOn the other hand, top line of $864.7 million fell short of the Zacks Consensus Estimate of $891 million. Nonetheless, the total revenue increased 4.6% year over year due to a surge in retail store and Financial Services revenues. However, decline in Internet and catalog sales partially offset the year-over-year improvement.The company has adopted several cost-saving initiatives to improve operational performance. These efforts will lower operating expenses, as a percentage of total revenue, by 75 basis points (bps) to 150 bps over the coming three years. The cost-saving endeavors include improvement in IT process, optimum utilization of retail labor, indirect procurement, merchandise sourcing along with retail support functions and supply chain efficiencies. Quarterly DetailsTotal merchandise sales inched up 3.2% to $719.9 million in the quarter. In the reported quarter, the company had combined the direct segment, retail segment and corporate overhead and other segment into a single merchandising unit. Going forward, the company expects merchandise revenues to keep increasing on the back of fresh initiatives like optimization of store formats as well as digital and mobile leadership.Cabela’s retail store revenues rose 7.6% to $564.1 million, while consolidated comparable sales (comps) dropped 4.3% owing to weakness in apparel, archery and shooting category. The company recorded positive comparable sales in powersports and firearms categories. Moreover, the U.S. comps declined 3.8% in the reported quarter.Financial services revenues increased 14.6% to $140.8 million, which reflects a 24.9% surge in interest and fee income as well as an 8.3% rise in interchange income. The average number of active credit card accounts grew 7.4%, while average balance of credit card loans jumped 15.3%.Further, segment operating margin (as a percentage of segment revenues) climbed to 44.7% in the quarter under review from 40.9% in the year-ago quarter.The company’s total operating income dipped 0.4% to $44.4 million, whereas operating margin contracted 30 bps to 5.1%.Other Financial AspectsCabela’s ended the quarter with cash and cash equivalents of $142 million, long-term debt (excluding current maturities) of roughly $884.1 million and shareholders’ equity of $1,873 million.Looking AheadIn 2015, the company undertook several cost-saving initiatives to improve operational performance and revenues. These efforts have started bearing fruit as the evidenced by the company’s decent results in the last two quarters. As a result, the company repeated its guidance for 2016. The company expects revenues to improve at a high-single-digit rate. The company envisions 2016 earnings per share to grow in the range of high-single-digit or low-double-digit in comparison with the 2015 adjusted earnings per share of $2.88. Management projected capital expenditures in the band of $200–$250 million for the full year.The company said that they are looking for expansion of retail footprint in North America to 200–225 stores.Zacks Rank & Key PicksCabela’s currently has a Zacks rank #3 (Hold). Some better-ranked stocks in the retail space include Marinemax Inc. HZO, Sally Beauty Holdings Inc. SBH and ULTA Salon, Cosmetics & Fragrance, Inc. ULTA. All these stocks hold a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CABELAS INC (CAB): Free Stock Analysis Report SALLY BEAUTY CO (SBH): Free Stock Analysis Report ULTA SALON COSM (ULTA): Free Stock Analysis Report MARINEMAX INC (HZO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research