Cabela's 2004 Annual Report Download - page 15

PART I
ITEM 1. BUSINESS
Special Note Regarding Forward-Looking Statements
This report contains ""forward-looking statements'' that are based on our beliefs, assumptions and
expectations of future events, taking into account the information currently available to us. All statements
other than statements of current or historical fact contained in this report are forward-looking statements.
Forward-looking statements involve risks and uncertainties that may cause our actual results, performance
or Ñnancial condition to diÅer materially from the expectations of future results, performance or Ñnancial
condition we express or imply in any forward-looking statements. These risks and uncertainties include, but
are not limited to: the ability to negotiate favorable lease and economic development arrangements,
expansion into new markets; market saturation due to new destination retail store openings; the rate of
growth of general and administrative expenses associated with building a strengthened corporate
infrastructure to support our growth initiatives; increasing competition in the outdoor segment of the
sporting goods industry; the cost of our products; supply and delivery shortages or interruptions; adverse
weather conditions which impact the demand for our products; Öuctuations in operating results; adverse
economic conditions; increased fuel prices; labor shortages or increased labor costs; changes in consumer
preferences and demographic trends; increased government regulation; inadequate protection of our
intellectual property; other factors that we may not have currently identiÑed or quantiÑed; and other risks,
relevant factors and uncertainties identiÑed in the ""Factors AÅecting Future Results'' section of this
report. The words ""believe,'' ""may,'' ""should,'' ""anticipate,'' ""estimate,'' ""expect,'' ""intend,'' ""objective,''
""seek,'' ""plan,'' ""will,'' and similar statements are intended to identify forward-looking statements. Given
the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on
these statements. Our forward-looking statements speak only as of the date of this report. Other than as
required by law, we undertake no obligation to update or revise forward-looking statements, whether as a
result of new information, future events or otherwise.
Overview
We are the nation's largest direct marketer, and a leading specialty retailer, of hunting, Ñshing,
camping and related outdoor merchandise. Since our founding in 1961, Cabela's has grown to become one
of the most well-known outdoor recreation brands in the United States, and we have long been recognized
as the World's Foremost OutÑtter. Through our well-established direct business and our growing number
of destination retail stores, we believe we oÅer the widest and most distinctive selection of high quality
outdoor products at competitive prices while providing superior customer service. Our multi-channel retail
model Ócatalog, Internet and destination retail stores Ì strategically positions us to meet our customer's
ever-growing needs. We also issue the Cabela's Club VISA credit card through which we oÅer a related
customer loyalty rewards program as a vehicle for strengthening our customer relationships.
Our extensive product oÅering consists of approximately 245,000 stock keeping units, or SKUs, and
includes hunting, Ñshing, marine and camping merchandise, casual and outdoor apparel and footwear,
optics, vehicle accessories, gifts and home furnishings with an outdoor theme. Our direct business uses
catalogs and the Internet to increase brand awareness and generate customer orders via the mail, telephone
and the Internet. In Ñscal 2004, we circulated over 120 million catalogs with 76 separate titles and our
website, cabelas.com, was in the top 1% of sites in the Hitwise Incorporated online measurement sport and
Ñtness category based on market share of visits. We opened our Ñrst destination retail store in 1987 and
currently operate ten destination retail stores that range in size from 35,000 square feet to 250,000 square
feet, including our Ñve large-format destination retail stores which are 150,000 square feet or larger. We
currently have plans to open four new destination retail stores in 2005, at least two in 2006, and at least
two in 2007.
We were initially incorporated as a Nebraska corporation in 1965 and were reincorporated as a
Delaware corporation in January of 2004. In June of 2004, we completed our initial public oÅering of
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