Cabela's 2013 Annual Report Download - page 22

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12
• retailers that currently compete with us through retail businesses that may enter the direct business;
• mass merchandisers, warehouse clubs, discount stores, and department stores, such as Wal-Mart, Target,
and Amazon; and
• casual outdoor apparel and footwear retailers, such as L.L. Bean, Lands’ End, and REI.
Many of our competitors have a larger number of stores, and some of them have substantially greater market
presence, name recognition, and financial, distribution, marketing, and other resources than we have. In addition,
if our competitors reduce their prices, we may have to reduce our prices in order to compete. Furthermore, some
of our competitors have aggressively built new stores in locations with high concentrations of our Direct business
customers. As a result of this competition, we may need to spend more on advertising and promotion. Some of
our mass merchandising competitors, such as Wal-Mart, do not currently compete in many of the product lines
we offer. If these competitors were to begin offering a broader array of competing products, or if any of the other
factors listed above occurred, our revenue could be reduced or our costs could be increased, resulting in reduced
profitability.
We may not be able to raise additional capital or obtain additional financing if needed.
We regularly review and evaluate our liquidity and capital needs. We currently believe that our available cash,
cash equivalents, and cash flow from operations will be sufficient to finance our operations and expected capital
requirements for at least the next 12 months. However, we might experience periods during which we encounter
additional cash needs and we might need additional external funding to support our operations. Although we were
able to enter into a $415 million revolving credit facility during fiscal 2011 and a $20 million Canadian revolving
credit facility during fiscal 2013 on acceptable terms, in the event we require additional liquidity, we cannot be
certain that additional funds will be available if needed and to the extent 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, including demand for firearms and ammunition;
• 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.