Cabela's 2012 Annual Report Download - page 49

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Results of Operations - 2012 Compared to 2011
Revenues
Retail revenue includes sales realized and customer services performed at our retail stores, sales from orders
placed through our retail store Internet kiosks, and sales from customers utilizing our in-store pick-up program.
Direct revenue includes Internet and call center (catalog) sales from orders placed through our website, over the
phone, and by mail where the merchandise is shipped to non-retail store locations. Financial Services revenue is
comprised of interest and fee income, interchange income, other non-interest income, interest expense, provision
for loan losses, and customer rewards costs from our credit card operations. Other revenue sources include fees for
our hunting and fishing outfitter services, fees for our full-service travel agency business, real estate rental income
and land sales, and other complementary business services.
Comparisons and analysis of our revenues are presented below for the years ended:
2012 % 2011 %
Increase
(Decrease) % Change
(Dollars in Thousands)
Retail $ 1,849,582 59.4% $ 1,550,442 55.2% $ 299,140 19.3%
Direct 930,943 29.9 956,834 34.0 (25,891) (2.7)
Financial Services 319,399 10.3 291,746 10.4 27,653 9.5
Other 12,758 0.4 12,144 0.4 614 5.1
$ 3,112,682 100.0% $ 2,811,166 100.0% $ 301,516 10.7
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
Product Category: 2012 2011 2012 2011 2012 2011
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%
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 clothing and footwear merchandise category includes fieldwear apparel and footwear, sportswear,
casual clothing and footwear, and workwear products.
Retail Revenue – Retail revenue increased $299 million, or 19.3%, in 2012 primarily due to an increase of
$195 million in revenue from new retail stores comparing year over year and an increase in 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.
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 $8 million, $7 million, and $5 million
for 2012, 2011, and 2010, respectively. Our gift instrument liability at the end of 2012 and 2011 was $135 million
and $118 million, respectively.