Cabela's 2013 Annual Report Download - page 47

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The hunting equipment merchandise category includes a wide variety of firearms, ammunition, optics,
archery products, and related accessories and supplies. The general outdoors merchandise category includes
a full range of equipment and accessories supporting all outdoor activities, including all types of fishing and
tackle products, boats and marine equipment, camping gear and equipment, food preparation and outdoor
cooking products, all-terrain vehicles and accessories for automobiles and all-terrain vehicles, and gifts and home
furnishings. The general outdoors merchandise category also includes wildlife and land management products and
services, including compact tractors and tractor attachments. The clothing and footwear merchandise category
includes fieldwear apparel and footwear, sportswear, casual clothing and footwear, and workwear products.
Retail Revenue – Retail revenue increased $384 million, or 20.7%, in 2013 primarily due to an increase of
$304 million in revenue from the addition of new retail stores comparing the respective periods and an increase
in comparable store sales of $68 million. Retail revenue growth was led by an increase in the hunting equipment
product category primarily from increases in firearms and ammunition, hunting apparel, archery, and optics, as
well as men’s apparel and general outdoors. Ammunition sales, while still above prior year levels, slowed during
the third quarter of 2013 and decreased during the fourth quarter of 2013.
We recognize revenue as gift certificates, gift cards, and e-certificates (“gift instruments”) are redeemed for
merchandise or services. We record gift instrument breakage as Retail revenue when the probability of redemption
is remote. Gift instrument breakage recognized was $7 million and $8 million for 2013 and 2012, respectively. Our
gift instrument liability at the end of 2013 and 2012 was $145 million and $135 million, respectively.
Comparable store sales and analysis are presented below for the years ended:
2013 2012 Increase (Decrease)
(Dollars in Thousands)
Comparable stores sales $ 1,810,185 $ 1,741,827 $ 68,358
Comparable stores sales growth percentage 3.9% 6.9%
Comparable store sales increased $68 million, or 3.9%, in 2013 principally because of the strength in our
hunting equipment category. 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 $385 for 2013 compared
to $362 for 2012. The increase in average sales per square foot is a result of our next-generation and Outpost stores
performing better than our legacy stores on a sales per square foot basis. Additionally, the increase in comparable
store sales contributed to the increase in average sales per square foot.
Direct Revenue – Direct revenue increased $43 million, or 4.6%, in 2013 compared to 2012. The increase
in Direct revenue compared to 2012 was primarily due to an increase in the hunting equipment product category.
This increase was negatively impacted as ammunition growth slowed faster than we anticipated leading to a lower
average customer order.
Internet sales increased in 2013 compared to 2012. The number of visitors to our website increased 25.8%
during 2013 as we continued to focus our efforts on utilizing Direct marketing programs to increase traffic to our
website and social media networks. Our hunting equipment and clothing and footwear categories were the largest
dollar volume contributors to our Direct revenue for 2013. The number of active Direct customers, which we define
as those customers who have purchased merchandise from us in the last twelve months, remained even compared
to 2012.