Cabela's 2011 Annual Report Download - page 17

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7
successful performance of our Financial Services business. Our Financial Services growth is dependent, in part,
on the success of our Retail and Direct businesses to generate additional sales and to attract additional Financial
Services customers.
Underwriting and Credit Criteria. We underwrite high-quality credit customers and have historically
maintained attractive credit statistics compared to industry averages. The scores of Fair Isaac Corporation
(“FICO”) are a widely-used tool for assessing a person’s credit rating. Our cardholders had a median FICO score of
788 at the end of 2011 compared to 790 at the end of 2010. We believe the median FICO scores of our cardholders
are well above the industry average. Our charge-offs as a percentage of total outstanding balances were 2.35% in
2011, which we believe is well below the 2011 industry average.
The table below presents data on the performance of our credit card portfolio comparing the last three
years and illustrates the high credit quality of our credit card portfolio. The following table shows delinquencies,
including any delinquent non-accrual and restructured credit card loans, and charge-offs, including any accrued
interest and fees, as a percentage of our average credit card loans:
2011 2010 2009
Delinquencies greater than 30 days 0.87% 1.13% 1.79%
Gross charge-offs 3.03 4.88 5.52
Charge-offs, net of recoveries 2.35 4.23 5.06
Products and Merchandising
We offer our customers a comprehensive selection of high-quality, competitively priced, national and regional
brand products, including our own Cabela’s brand. Our product assortment includes merchandise and equipment
for hunting, fishing, marine use, and camping, along with casual and outdoor apparel and footwear, optics, vehicle
accessories, and gifts and home furnishings with an outdoor theme.
The following table sets forth the percentage of our merchandise revenue contributed by each of the five
product categories for our Retail and Direct businesses and in total for the last three years.
Retail Direct Total
Product Category 2011 2010 2009 2011 2010 2009 2011 2010 2009
Hunting Equipment 45.7% 44.5% 45.3% 33.4% 33.7% 35.2% 41.1% 40.2% 41.1%
Clothing and Footwear 23.6 24.0 22.9 33.9 33.4 33.4 27.4 27.7 27.3
Fishing and Marine 13.9 14.2 14.5 11.4 11.5 12.1 13.0 13.2 13.5
Camping 8.2 8.5 8.5 11.5 11.8 10.2 9.4 9.8 9.2
Gifts and Furnishings 8.6 8.8 8.8 9.8 9.6 9.1 9.1 9.1 8.9
Tot al 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Hunting Equipment. We provide equipment, accessories, and consumable supplies for almost every type
of hunting and sport shooting. Our hunting products are supported by in-house services such as gun bore sighting,
scope mounting, and bow tuning to serve the complete needs of our customers.
Clothing and Footwear. Our clothing and footwear merchandise includes fieldwear and sportswear apparel
and technical gear for the active outdoor enthusiast, as well as apparel and footwear for the casual customer.