Cabela's 2013 Annual Report Download - page 21

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11
ITEM 1A. RISK FACTORS
Risk Factors
Risks Related to Our Merchandising Business
A decline in discretionary consumer spending could reduce our revenue.
Our revenue depends on discretionary consumer spending, which may decrease due to a variety of factors
beyond our control, including:
• unfavorable general business conditions;
• increases in interest rates;
• increases in inflation;
• wars, fears of war, and terrorist attacks and organizing activities;
• increases in consumer debt levels and decreases in the availability of consumer credit;
• adverse or unseasonal weather conditions or events;
• increases in gasoline prices reducing the willingness to travel to our retail stores;
• changes in demographic trends;
• changes in consumer preferences, including demand for firearms and ammunition;
• increases in taxation;
• adverse fluctuations of foreign currencies;
• adverse unemployment trends;
• adverse conditions in the mortgage and housing markets; and
• other factors that adversely influence consumer confidence and spending.
Our customers’ purchases of discretionary items, including our products, could decline during periods when
disposable income is lower or periods of actual or perceived unfavorable economic conditions. If this occurs, our
revenue could decline.
Difficult conditions in the economy generally may materially adversely affect our business and results
of operations.
Our results of operations are materially affected by conditions in the economy generally. Factors such as
consumer spending, oil prices, unemployment rates, the availability of credit, and the volatility and strength
of the capital markets all affect the business and macroeconomic environment and, ultimately, the revenue and
profitability of our business. In an economic environment characterized by higher unemployment, lower family
income, and lower consumer spending, the demand for our products could be adversely affected. This may
materially affect our business and results of operations.
Competition in the outdoor recreation and casual apparel and footwear markets could reduce our
revenue and profitability.
The outdoor recreation and casual apparel and footwear markets are highly fragmented and competitive. We
compete directly or indirectly with the following types of companies:
• other specialty retailers that compete with us across a significant portion of our merchandising categories
through retail store or direct businesses, such as Bass Pro Shops, Gander Mountain, Orvis, The
Sportsman’s Guide, and Sportsman’s Warehouse;
• large-format sporting goods stores and chains, such as The Sports Authority, Dick’s Sporting Goods, and
Big 5 Sporting Goods;