Cabela's 2010 Annual Report Download - page 24

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required or, if available, on acceptable terms. If we cannot raise necessary additional funds on acceptable terms,
there could be a material adverse impact on our business and results of operations. We also may not be able to fund
expansion, take advantage of future opportunities, meet our existing debt obligations, or respond to competitive
pressures or unanticipated requirements.
Our comparable store sales will fluctuate and may not be a meaningful indicator of future performance.
Changes in our comparable store sales results could affect the price of our common stock. A number of
factors have historically affected, and will continue to affect, our comparable store sales results, including:
• competition;
• new store openings;
• general regional and national economic conditions;
• actions taken by our competitors;
• consumer trends and preferences;
• new product introductions and changes in our product mix;
• timing and effectiveness of promotional events; and
• weather conditions.
Our comparable store sales may vary from quarter to quarter, and an unanticipated decline in revenues or
comparable store sales may cause the price of our common stock to fluctuate significantly.
If we fail to maintain the strength and value of our brand, our revenue is likely to decline.
Our success depends on the value and strength of the Cabela’s brand. The Cabela’s name is integral to our
business as well as to the implementation of our strategies for expanding our business. Maintaining, promoting,
and positioning our brand will depend largely on the success of our marketing and merchandising efforts and our
ability to provide high quality merchandise and a consistent, high quality customer experience. Our brand could be
adversely affected if we fail to achieve these objectives or if our public image or reputation were to be tarnished by
negative publicity. Any of these events could result in decreases in revenue.
If we cannot successfully implement system changes in support of our customer relationship
management system, our operating results could suffer.
We are implementing substantial information technology system changes in support of our customer
relationship management system in our Direct business. There are inherent risks associated with these system
changes that could affect our ability to take customer orders, to deliver products to our customers in an efficient
manner, and to collect cash from our customers. For example, in October 2010, we implemented a significant
number of information technology system changes and encountered issues with these system changes that affected
our ability to take and process customer orders and to deliver products to our customers in an efficient manner.
Our success in this implementation depends on our ability to process customer orders, including the collection of
cash, track customer data and demographics, and provide accurate financial data and reporting. We may be unable
to successfully implement these system changes, or the changes to this system could result in order fulfillment
and cash collection issues, which could have an adverse effect on our financial condition and results of operations.
Additionally, there is no assurance that successful implementation of these system changes will deliver value to us.
Failure to protect the personal information of our customers may harm our business and reputation.
The nature of our business requires that we collect and maintain personal information about our customers.
We use third-party systems, software, and tools in order to protect the customer data we obtain through the course
of our business. Although we maintain security measures to protect such customer information, security breaches,
computer viruses, acts of vandalism, human error, or other similar events may result in the unauthorized disclosure
of confidential customer information. Such a security breach could damage our reputation with our customers and
expose us to the risk of litigation.