Cabela's 2005 Annual Report Download - page 27

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Our direct business is subject to the Merchandise Mail Order Rule and related regulations promulgated by
the Federal Trade Commission, or FTC, which affect our catalog mail order operations. FTC regulations, in
general, govern the solicitation of orders, the information provided to prospective customers and the timeliness of
shipments and refunds. In addition, the FTC has established guidelines for advertising and labeling many of the
products we sell.
Intellectual Property
Cabela’s®, Cabela’s Club®, Cabelas.com®, World’s Foremost Outfitter®, World’s Foremost Bank®, Bargain
Cave®, Dunn’s®, Van Dyke’s®, Wild Wings®and Herters®are among our registered service marks or
trademarks with the United States Patent and Trademark Office. We have numerous pending applications for
trademarks. In addition, we own several other registered and unregistered trademarks and service marks
involving advertising slogans and other names and phrases used in our business. We own several patents
associated with various products. We also own trade secrets, domain names and copyrights, which have been
registered for each of our catalogs.
We believe that our trademarks are valid and valuable and intend to maintain our trademarks and any related
registrations. We do not know of any pending claims of infringement or other challenges to our right to use our
marks in the United States or elsewhere. We have no franchises or other concessions which are material to our
operations.
Available Information
Our website address is www.cabelas.com. There we make available, free of charge, our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports,
as soon as reasonably practicable after we electronically file such material with or furnish it to the SEC. Our SEC
reports can be accessed through the investor relations section of our website. The information on our website,
whether currently posted or in the future, is not part of this or any other report we file with or furnish to the SEC.
ITEM 1A.RISK FACTORS
Risk Factors
Risks Related to Our Merchandising Business
If we cannot successfully implement our destination retail store expansion strategy, our growth and
profitability would be adversely impacted.
Since January 1, 1998, we have increased the number of our destination retail stores from two, totaling
124,000 square feet, to 14, totaling 2.1 million square feet. We currently plan to open five additional destination
retail stores by the end of 2006. We continue to actively seek additional locations to open new destination retail
stores. Our ability to open new destination retail stores in a timely manner and operate them profitably depends
on a number of factors, many of which are beyond our control, including:
• our ability to manage the financial and operational aspects of our retail growth strategy;
• our ability to identify suitable locations, including our ability to gather and assess demographic and
marketing data to determine consumer demand for our products in the locations we select;
• our ability to negotiate and obtain economic development packages with local and state governments
where our new destination retail stores would be located;
• our ability to properly assess the implications of economic development packages and customer density
to project the profitability of potential new destination retail store locations;
• our ability to secure required governmental permits and approvals;
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