Cabela's 2013 Annual Report Download - page 57

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47
Key statistics reflecting the performance of Cabela’s CLUB are shown in the following chart for the
years ended:
2012 2011 Increase
(Decrease) %
Change
(Dollars in Thousands Except Average Balance per Account)
Average balance of managed credit card loans (1) $ 3,095,781 $ 2,745,118 $350,663 12.8%
Average number of active credit card accounts 1,537,209 1,416,887 120,322 8.5
Average balance per active credit card account (1) $ 2,014 $ 1,937 $ 77 4.0
Net charge-offs on managed loans (1) $ 57,803 $ 64,520 $ (6,717) (10.4)
Net charge-offs as a percentage of average managed credit
card loans (1) 1.87% 2.35% (0.48)%
(1) Includes accrued interest and fees.
The average balance of credit card loans increased to $3.1 billion, or 12.8%, for 2012 compared to 2011
due to an increase in the number of active accounts and the average balance per account. The average number of
active accounts increased to 1.5 million, or 8.5%, compared to 2011 due to our successful marketing efforts in new
account acquisitions. Net charge-offs as a percentage of average credit card loans decreased to 1.87% for 2012,
down 48 basis points compared to 2011, due to improvements in delinquencies and delinquency roll-rates.
Other Revenue
Other revenue increased $1 million in 2012 to $13 million compared to 2011 primarily due to an increase of
$1 million in real estate sales revenue in 2012 compared to 2011.
Merchandise Gross Profit
Comparisons and analysis of our gross profit on merchandising revenue are presented below for the
years ended:
2012 2011 Increase
(Decrease) %
Change
(Dollars in Thousands)
Merchandise sales $2,778,903 $2,505,733 $273,170 10.9%
Merchandise gross profit 1,009,742 892,492 117,250 13.1
Merchandise gross profit as a
percentage of merchandise sales 36.3% 35.6% 0.7%
Merchandise Gross Profit – Our merchandise gross profit increased $117 million, or 13.1%, to $1 billion
in 2012 compared to 2011. The increase in our merchandise gross profit was primarily due to better inventory
management, which reduced the need to mark down product, continued improvements in vendor collaboration, an
ongoing focus on private label products, and further improvements in price optimization.
Our merchandise gross profit as a percentage of merchandise sales increased to 36.3% in 2012 from 35.6%
in 2011. The increase in the merchandise gross profit as a percentage of merchandise sales in 2012 compared to
2011 was primarily due to continued improvements in pre-season and in-season inventory management and vendor
collaboration, which allowed us to avoid significant end of season markdowns as we transitioned from fall to spring
merchandise. The increase in our merchandise gross profit as a percentage of merchandise sales was partially
offset by an adverse product mix shift due to increased sales of firearms, ammunition, and power sports products,
which carry a lower margin.