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Bass Pro profit margins ‘better than Apple and Alibaba’

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Figures leaked from a private presentation showed that Bass Pro Shops posted a 50% profit margin.

Profit margins at Bass Pro were better than those at Apple and Alibaba in the most recent quarter, according to a confidential presentation to lenders which was part of last month’s $5.5 billion purchase of rival Cabela’s.

The 50% gross margin posted by the 78-store Springfield, Montana chain topped Apple at 38% and Alibaba’s 30%.

The figures were revealed by the New York Post after it had obtained a copy of a 67-page presentation for lenders.

While margins at walk-in businesses are normally below those of big online retailers, Bass Pro is made more resilient because some of its categories, like gun sales, are not encroached upon by web competitors and because it has its own strong, national brands, says the report.

“Seventy per cent of the pro forma product portfolio is either exclusive own brands, products unable to be sold online, challenging to sell economically or subject to manufacturer pricing restrictions,” said the company.

Bass Pro reported revenues of $3.4 billion in the year ended September 30th, said the report, compared to $4.2 billion for the slightly bigger Cabela’s.

Further information in the report revealed that typical shoppers at both chains drive more than 40 miles to shop there and spend an average of two-and-a half-hours in-store. Bass Pro said 45% of its customers also shop at Cabela’s.

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