Cabela's 2006 Annual Report Download - page 7

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3
PART I
ITEM 1. BUSINESS
Special Note Regarding Forward-Looking Statements
This report contains “forward-looking statements” that are based on our beliefs, assumptions and expectations
of future events, taking into account the information currently available to us. All statements other than statements
of current or historical fact contained in this report are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,”
“intend,” “objective,” “seek,” “plan,” and similar statements are intended to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or
financial condition to differ materially from the expectations of future results, performance or financial condition
we express or imply in any forward-looking statements. These risks and uncertainties include, but are not limited to:
the ability to negotiate favorable purchase, lease and/or economic development arrangements; expansion into new
markets; market saturation due to new destination retail store openings; the acceleration of new destination retail
store openings; the rate of growth of general and administrative expenses associated with building a strengthened
corporate infrastructure to support our growth initiatives; increasing competition in the outdoor segment of the
sporting goods industry; the cost of our products; supply and delivery shortages or interruptions caused by system
changes or other factors; adverse weather conditions, unseasonal weather conditions which impact the demand
for our products; fluctuations in operating results; adverse economic conditions causing a decline in discretionary
consumer spending; the cost of fuel increasing; delays in road construction and/or traffic planning around our new
destination retail stores; road construction around our existing destination retail stores; labor shortages or increased
labor costs; changes in consumer preferences and demographic trends; increased government regulation; inadequate
protection of our intellectual property; decreased interchange fees received by our financial services business as a
result of credit card industry litigation; other factors that we may not have currently identified or quantified; and
other risks, relevant factors and uncertainties identified in the “Risk Factors” section of this report. Given the risks
and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements.
Our forward-looking statements speak only as of the date of this report. Other than as required by law, we undertake
no obligation to update or revise forward-looking statements, whether as a result of new information, future events
or otherwise.
Overview
We are the world’s largest direct marketer, and a leading specialty retailer, of hunting, fishing, camping and
related outdoor merchandise. Since our founding in 1961, Cabela’s has grown to become one of the most well-known
outdoor recreation brands in the world, and we have long been recognized as the World’s Foremost Outfitter. Through
our well-established direct business and our growing number of destination retail stores, we believe we offer the
widest and most distinctive selection of high-quality outdoor products at competitive prices while providing superior
customer service. We also issue the Cabela’s CLUB Visa® credit card, which serves as our primary customer loyalty
rewards program.
We were initially incorporated as a Nebraska corporation in 1965 and were reincorporated as a Delaware
corporation in January 2004. In June 2004, we completed our initial public offering of common stock. Our common
stock is listed on the New York Stock Exchange under the symbol “CAB.”
Direct Business
Our direct business uses catalogs and the Internet as marketing tools to generate sales orders via the Internet,
telephone and mail. Our direct business generated $1,088.5 million in revenue in fiscal 2006, representing approximately
57.0% of our total revenue from our direct and retail businesses. See Note 17 to our consolidated financial statements
and our “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional
financial information regarding our direct business.