Cabela's 2013 Annual Report Download - page 55

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45
Product Sales Mix – The following table sets forth the percentage of our merchandise revenue contributed by
major product categories for our Retail and Direct segments and in total for the years ended:
Retail Direct Total
2012 2011 2012 2011 2012 2011
Product Category:
Hunting Equipment 49.5% 45.7% 37.1% 33.4% 45.3% 41.1%
General Outdoors 28.7 30.7 32.0 32.7 29.8 31.5
Clothing and Footwear 21.8 23.6 30.9 33.9 24.9 27.4
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Retail Revenue – Retail revenue increased $299 million, or 19.3%, in 2012 primarily due to an increase
of $195 million in revenue from the addition of new retail stores comparing year over year and an increase in
revenue from comparable store sales of $102 million. Retail revenue growth, including the increase in comparable
store sales, was led by increases in the hunting equipment product category in large part due to increased sales
of firearms and ammunition. Gift instrument breakage recognized was $8 million, $7 million, and $5 million for
2012, 2011, and 2010, respectively.
Comparable store sales and analysis are presented below for the years ended:
2012 2011 Increase
(Decrease)
(Dollars in Thousands)
Comparable stores sales $ 1,573,824 $ 1,472,032 $ 101,792
Comparable stores sales growth percentage 6.9% 2.8%
Comparable store sales increased $102 million, or 6.9%, in 2012 principally because of the strength in our
hunting equipment category. Average sales per square foot for stores that were open during the entire year were
$362 for 2012 compared to $328 for 2011. The increase in average sales per square foot resulted from the increase
in comparable store sales. In addition, our next-generation stores performed better on a sales per square foot basis
than our legacy stores.
Direct Revenue – Our Direct revenue decreased $26 million, or 2.7%, in 2012 compared to 2011. The
decrease in Direct revenue compared to 2011 was primarily due to a decrease in the clothing and footwear product
category and a decrease in revenue from our catalog and call centers. These decreases in Direct revenue were
partially offset by increased sales attributable to the CLUB Visa free shipping offer and advertising promotions in
digital marketing. The free shipping offer to our Cabela’s CLUB Visa customers resulted in increased merchandise
sales, greater order frequency, and increases in the number of new Visa cardholder accounts.
Internet sales increased in 2012 compared to 2011. The number of website visitors increased 18.3% during
2012 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 contributor to our Direct revenue for 2012. 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 2011.
We continued to focus on smaller, more specialized catalogs, and we have reduced the number of pages
mailed and decreased total circulation, leading to continued reductions in catalog related costs. Mostly offsetting
the reductions in catalog related costs were increases in Internet related expenses due to our expanded use of digital
marketing channels and enhancements to our website.