Cabela's 2007 Annual Report Download - page 4

About us
Cabela’s® is a leading specialty retailer, and the world’s
largest direct marketer, of hunting, fi shing, 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 has
long been recognized as the World’s Foremost Outfi tter®.
Through our growing number of retail stores and our well-
established direct business, we offer a wide and 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.
• Advertising – Our goal is to increase sales
lift from retail advertising and drive more
traffi c to our stores. Areas of focus include
optimizing product selection, density and
placement in retail advertising; improving
productivity of print advertising; and
enhancing the advertising strategy related
to new store openings.
• Retail Operations – Our goal is to
signifi cantly impact retail store productivity
and same store sales by focusing on
increasing average ticket; improving overall
productivity; enhancing outfi tter training;
and addressing underperforming stores.
• Margins – With the goal of improving
merchandise gross margins through
improved planning and merchandising for
our retail stores, we will focus on
implementing a new merchandise planning
process; enhancing product assortments;
flexing merchandise with more seasonal
assortments; and improving visual
merchandising.
• Inventory – Improving inventory turns
in 2008 is the goal of this initiative.
Areas of focus include better leveraging of
existing technologies including our
advanced replenishment system; reviewing
and modifying minimum order quantities;
and executing our “open to buy” process.
With these initiatives, we enter 2008
optimistic and determined to positively impact
our business. We continue to evolve our
business model by adapting and capitalizing
on new ideas that will improve performance
of our retail stores. For 2008, I am confi dent
our employees and our initiatives are
properly focused and will result in signifi cant
improvements in our business for this year
as well as provide a solid foundation for the
future. I look forward to updating you on
the progress of these initiatives throughout
the year.
Cabela’s Advantage
I would like to express how extremely proud
I am of the contribution of Cabela’s outfi tters
and their response to the economic conditions
that challenged us in the second half of
2007. Their true character was revealed as
they buckled down to adapt to the changing
economic climate in 2007 and willingly and
quickly refocused on our strategic direction
for 2008. Our outfi tters are certainly a
competitive advantage, and I am extremely
proud of their positive attitude and dedicated
work ethic.
In closing, the management team and I are
very committed to providing our shareholders
an acceptable return. I recognize our
performance, coupled with tough economic
conditions, did not provide the return
our shareholders expect and deserve. We
continue to live and believe in the values
established by our founders Jim and Dick
Cabela. We are confi dent the strength of the
Cabela’s brand, superior product selection
and commitment to customer service will
continue to separate us from the competition
and provide critical elements for us to enhance
shareholder value.
Sincerely,
Dennis Highby
President and Chief Executive Offi cer
(letter continued)
Dennis Highby with a 31-inch
Ontario, Canada, walleye.