America's gun fever is breaking
Here's one sign: Cabela's says it doubts it can sell as many firearms in 2013 as it did last year.
Women and older Americans have been buying more guns, overall sales are up, ammo supplies were stretched thin, background checks hit record levels, and gun and ammunition manufacturers have been adding jobs. Gun fever spread quickly, but it looks as if it's finally cooling off.
Outdoor sporting goods chain Cabela's (CAB), which Reuters says generated roughly $3.1 billion of its sales through hunting equipment alone last year, doesn't seem to think it's going to sell as many guns this year as it did in the year prior. It doesn't think it can match the 10.5% growth in comparable-store sales (sales at stores open for at least one year) it reported for the second quarter, which is already a decrease from the 24% gain it recorded in the first quarter.
That said, it doesn't see the downtick as a negative. "The gun business is settling to what I would probably assume to be a new normal, which is elevated above history but not at the fever level that we saw recently, and that’s a good thing," Cabela's chief executive Tommy Millner said in a conference call on Thursday.
The company sees the abating demand for guns as a mixed blessing because it allows the company to focus on other products and continued expansion of the chain. Cabela's also operates with the knowledge that such spikes in gun sales are erratic, with the first coming after the Aurora shooting and yet another after the shooting massacre of elementary school students in Newtown, Conn., in December.
After renewed calls for gun-control legislation died in the Senate in April, however, the public's memory of the events began to fade and gun owners' sense of impending peril to their ability to bear arms diminished.
Even as states like New York take legislative matters into their own hands and the insurance industry warns against arming school employees, Cabela's says such restrictions affect just a small percentage of its business. Besides, all of that keeps the gun debate going, which only fuels the "new normal" that Millner and the folks at Cabela's so eagerly anticipate.
Don't worry the gun sale will be up again.
With this Odummer trying to start a race war about this GZ case..
It's because we are all well stocked and well armed at this point. I have several 1000's of rounds in several different calibers and thus only need to buy what I use at this point for target practice. Anybody with a brain realizes that the government can't keep up the pace on the spending and it's all going to come crashing down when the EBT cards no longer work.
Obama has been a blessing in disguise to the gun manufacturers. His race-baiting and class warfare have destabilized the nation. People don't feel safe in their own houses when he is throwing open the gates to illegal aliens and stirring up blacks against the rest of the country. "If I had a son, he would look like Trayvon" and "I don't know the details, but it seems to me the police acted stupidly" and "black people need to arm themselves and take up arms against THE MAN"! Ok, I made the last one up, but the others are too stupid and real to not pay attention. Obama and Sharpton and Jessie Jackson (the one that isn't in jail but should be) are the black KKK of the USA!
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Equity indices began the day in the red, but wasted no time regaining their flat lines. Small-cap stocks were not as fortunate as the Russell 2000 spent the day in the red.
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