Cabela's 2010 Annual Report Download - page 48

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Retail Revenue – Retail revenue includes sales realized and customer services performed at our retail
stores, sales from orders placed through our retail store Internet kiosks, and sales from customers utilizing our
in-store pick-up program. Retail revenue increased $24 million in 2010 primarily due to to sales from our new
retail store that opened in Grand Junction, Colorado, on May 20, 2010, and to increases in comparable store sales
of $21 million led by increases in sales in the clothing and footwear category. After adjusting Retail revenue for
the impact of the extra week in 2009, which totaled $34 million, Retail revenue in 2010 increased $58 million
compared to 2009.
When gift certificates, gift cards, and e-certificates (“gift instruments”) are redeemed for merchandise or
services, revenue is recognized. We record gift instrument breakage as revenue when the probability of redemption
is remote. Gift instrument breakage recognized was $5 million, $5 million, and $10 million for 2010, 2009,
and 2008, respectively. In the fourth quarter of 2008, we began recognizing breakage on gift instruments four
years after issuance as a result of changes in historical trends in the types of gift instruments issued and related
redemption rates. This change in estimate from seven to four years resulted in an increase in revenue and operating
income of $9 million that we recorded in the fourth quarter of 2008. Our gift instrument liability at the end of 2010
and 2009 was $111 million and $103 million, respectively.
2010 2009 (1) Increase (Decrease) % Change
(Dollars in Thousands)
Comparable stores sales $ 1,347,984 $1,326,513 $ 21,471 1.6%
Comparable stores sales growth percentage 1.6%3.5%
(1) Excludes the extra week in 2009 to present on a comparable 52-week basis.
Comparable store sales increased $21 million, or 1.6%, in 2010 principally because of the strength in our
hunting equipment and clothing and footwear categories and the success of our Retail operations focus. A store is
included in our comparable store sales base on the first day of the month following the fifteen month anniversary
of 1) its opening or acquisition, or 2) any changes to retail store space greater than 25% of total square footage of
the store.
Average sales per square foot for stores that were open during the entire year were $314 for 2010 compared
to $316 for 2009 ($308 per square foot adjusted on a 52-week basis). The increase in average sales per square foot
adjusted on a 52-week basis resulted from the increase in comparable store sales.
Direct Revenue – Direct revenue includes catalog and Internet sales from orders placed over the phone, by
mail, and through our website where the merchandise is shipped to non-retail store locations. Our Direct revenue
decreased $59 million, or 5.6%, in 2010 compared to 2009. The impact of the extra week in 2009 was to increase
Direct revenue by $17 million; therefore, adjusted for 52 weeks, Direct revenue decreased $42 million in 2010
compared to 2009.
We divested our non-core home restoration products business in October 2010 and our non-core taxidermy
and wildlife prints and collectibles businesses in the fall of 2009. For comparative purposes, Direct revenue in
2010 compared to 2009 (adjusted for the effect of these divestitures and the impact of week 53 in 2009) would
have resulted in a decrease of $16 million, or 1.6%. Direct revenue also decreased due to our inventory reduction
initiatives in the first half of 2010, which affected inventory levels resulting in fill rates being lower in 2010
compared to 2009. Fiscal 2010 was also affected by a decrease in the sales of ammunition and reloading supplies as
supply caught up to demand and consumers are now able to find ammunition at retail stores.