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What: Shares of specialty retailer Cabela's (NYSE:CAB) slumped on Thursday after the company reported its second-quarter results, missing analyst estimates for both revenue and earnings. At 2:30 Thursday afternoon, the stock was down about 11%.

So what: Cabela's reported quarterly revenue of $836.3 million, up 9.9% year-over-year, but about $17 million short of the average analyst estimate. This growth was driven by new store openings, with five new stores being opened during the second quarter. Total comparable-store sales declined by 0.9%, while U.S. comparable-store sales grew by 0.8%. Currency issues affecting the Canadian business were the main source of the decline.

Retail sales rose 13.9% year-over-year, accounting for $570 million of revenue. Direct sales declined by 7%, producing revenue of $137 million, while financial services grew by 14.2%, contributing $125 million of revenue. Operating profit declined year-over-year in both the retail and direct businesses, while financial services nearly doubled its operating profit.

Cabela's reported EPS of $0.56, down from $0.61 in the same period last year and $0.06 short of analyst estimates. The decline was driven in part by weak performance in soft goods and apparel, along with an increase in promotional activity.

Despite the earnings miss, Cabela's reaffirmed its full-year guidance. The company expects revenue to grow by a low-double-digit percentage, while EPS is expected to grow by a high-single-digit to low-double-digit percentage.

Now what: Cabela's second quarter was certainly a disappointing one. While operating income slumped by 12% year-over-year, the strength of the financing business prevented an even worse decline. Retail operating margin fell by more than four percentage points year-over-year, to 15.8%, while direct operating margin fell by more than five percentage points, to 11%.

Part of this increase in costs is related to new stores, and the company stated that it recently completed a review of its expenses, identifying meaningful savings that can be implemented through the end of 2016. At the moment, though, the decline in Cabela's profitability, along with weak comparable-store sales, has sent the stock tumbling.

Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.