Cabela's 2005 Annual Report Download - page 11

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World’s Foremost Bank
2005 proved to be another great year
for our financial services business.
Through our wholly-owned subsidiary,
World’s Foremost Bank, and our
Cabela’s Club VISA program, we con-
tinue to offer our customers added
value and a convenient way to shop.
The Cabela’s Club VISA program has
proven to be an excellent way to build
brand recognition and loyalty among
our customers.
Cabela’s Club VISA members receive
rewards whenever and wherever they
use their card. In fiscal 2005, approxi-
mately 19% of Cabela’s total
merchandise revenue was generated by
sales made to customers who used their
Cabela’s Club VISA credit card. The
program has proven successful in in-
creasing customer spending levels and
in lowering customer attrition rates.
By adhering to stringent credit prac-
tices we have achieved outstanding
returns on capital and have been able
to maintain delinquencies and charge-
off statistics well below industry
averages.
$46
Financial Services Revenue
($ in Millions)
’02
$58
’03
$78
’04
$116
’05
$678
Receivables Outstanding
($ in Millions)
’02
$874
’03
$1,083
’04
$1,341
’05
Increasing Customer Loyalty, Adding Value
Annual Report 2005 9