Cabela's 2008 Annual Report Download - page 35

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30
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis of financial condition, results of operations, liquidity, and capital
resources should be read in conjunction with our audited consolidated financial statements and notes thereto
appearing elsewhere in this report.
Forward Looking Statements – Our discussion contains forward-looking statements with respect to our plans
and strategies for our businesses and the business environment that are impacted by risks and uncertainties. Refer to
“Special Note Regarding Forward-Looking Statements” preceding PART I, ITEM 1, and to ITEM 1A “Risk Factors”
for information regarding certain of the risks and uncertainties that affect our business and the industries in which
we operate. Please note that our actual results may differ materially from those we may estimate or project in any of
these forward-looking statements.
Cabela’s®
We are a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping, and
related outdoor merchandise. We provide a quality service to our customers who enjoy an outdoor lifestyle by supplying
outdoor products through our multi-channel retail business consisting of our Retail and Direct business segments.
Our Retail business segment is comprised of 29 stores, 28 located in the United States and one in Canada. Our Direct
business segment is comprised of our catalog mail order business and our highly acclaimed Internet website.
Our Financial Services business segment also plays an integral role in supporting our merchandising business.
Our Financial Services business segment is comprised of our credit card services which reinforces our strong brand
and strengthens our customer loyalty through our credit card loyalty programs.
Fiscal 2008 Overview
Increase
(Decrease)2008 2007 % Change
(Dollars in Thousands)
Revenue:
Retail $1,285,496 $1,043,442 $242,054 23.2%
Direct 1,095,159 1,130,553 (35,394)(3.1)
Total merchandise sales 2,380,655 2,173,995 206,660 9.5
Financial Services 158,971 159,335 (364)(0.2)
Other revenue 13,095 16,269 (3,174)(19.5)
Total revenue $ 2,552,721 $2,349,599 $203,122 8.6
Operating income $ 141,039 $151,092 $(10,053)(6.7)
Net income per diluted share $ 1.14 $1.31 $(0.17)(13.0)
Revenues for 2008 totaled $2.6 billion, an increase of 8.6% over 2007. Revenues increased in 2008 principally
from the opening of two new stores in 2008 and eight in 2007. Direct revenue decreased 3.1% compared to 2007.
Operating income totaled $141 million for 2008, a decrease of 6.7% from 2007. Net income per diluted share for 2008
was $1.14 compared to $1.31 for 2007.