Cabela's 2009 Annual Report Download - page 40

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31
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 30 stores, 29 located in the United States and one in Canada.
Our Direct business segment is comprised of our highly acclaimed Internet website which is supplemented by our
catalog distributions as a selling and marketing tool.
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 2009 Overview
2009 2008 Increase
(Decrease) % Change
(Dollars in Thousands)
Revenue:
Retail $1,388,991 $1,285,496 $103,495 8.1%
Direct 1,058,644 1,095,159 (36,515)(3.3)
Total merchandise sales 2,447,635 2,380,655 66,980 2.8
Financial Services 171,414 158,971 12,443 7.8
Other revenue 13,191 13,095 96 0.7
Total revenue $ 2,632,240 $2,552,721 $79,519 3.1
Operating income $ 92,678 $141,039 $(48,361)(34.3)
Diluted earnings per share $ 0.74 $1.14 $(0.40)(34.7)
Revenues for 2009 totaled $2.6 billion, an increase of 3.1% over 2008. Revenue in our merchandising businesses
increased $67 million, or 2.8%, in 2009 compared to 2008. The net increase in total merchandise sales comparing
2009 to 2008 was due to:
• net increases in sales due to the impact of the 53rd week in 2009;
• increases in comparable store sales led by increases in the hunting equipment category for 2009 compared
to 2008; and
• the opening of our Billings, Montana, retail store in May 2009, as well as the opening of new stores in
August 2008 and May 2008.