Cabela's 2004 Annual Report Download - page 11

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World’s Foremost Bank
Another important component of Cabela’s multi-
channel efforts is the Cabela’s Club VISA credit card,
issued through our wholly-owned subsidiary, World’s
Foremost Bank. The program, now in its 10th year, has
been successful in increasing brand loyalty and
strengthening customer relationships. Cabela’s Club
VISA members receive rewards whenever and wherever
they use their Cabela’s Club VISA. Approximately 17.7%
of Cabela’s total merchandise sales in fiscal 2004 were
made using the Cabela’s Club VISA credit card.
We adhere to stringent credit practices and only provide
cards to our most creditworthy customers. By lending to
only “super prime” credit quality customers, we have been
able to maintain our credit statistics well below industry
averages. Charged-off loans as a percentage of average
managed receivables fell to 2.21% in 2004 from 2.42% in
2003. We have maintained these superior credit statistics as
financial services revenue has grown at a compound annual
growth rate (CAGR) of nearly 42% over the past four years.
In 2004, our financial services segment ended the year
with total managed receivables outstanding of more than
$1 billion and surpassed the one million credit card
accounts mark. Cabela’s financial services revenue
increased 34.0% to a record
$78.1 million from $58.3
million in fiscal 2003.
Cabela’s Club VISA members
have demonstrated their loyalty
with increased levels of spending
and lower customer attrition
rates. Going forward, the Cabela’s
Club VISA will continue to
serve as our primary customer
loyalty rewards program.
9
ANNUAL REPORT
Financial
Financial
SERVICES
2004
$874
$678
Total Managed
Receivables
2003
2002
$ Millions (at year-end)
2004
$58
$46
Financial Services
Revenue
$27
2003
2002
2001
$ Millions
$78
Approximately 17.7%
of Cabela’s total
merchandise sales in
fiscal 2004 were made
using the Cabela’s
Club VISA credit card.
CAGR 41.9%
$1,083
Approximately 17.7%
of Cabela’s total
merchandise sales in
fiscal 2004 were made
using the Cabela’s
Club VISA credit card.
Approximately 17.7%
of Cabela’s total
merchandise sales in
fiscal 2004 were made
using the Cabela’s
Club VISA credit card.