Cabela's 2004 Annual Report Download - page 20

Products and Merchandising
We oÅer our customers a comprehensive selection of high quality, competitively priced, national and
regional brand products, including our own Cabela's brand. Our product oÅering 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 merchandise assortment ranges from products at entry-level price points to premium-priced high-
end items and we generally price our products consistently across our direct and retail businesses. Our
destination retail stores generally oÅer the same merchandise available through our direct business
augmented by a selection of seasonal specialty items and gifts appropriate for the store. We also tailor the
merchandise selection in our destination retail stores to meet the regional tastes and preferences of our
customers.
As of Ñscal year end 2004, we had 43 product categories, which we have combined into Ñve general
product categories that are summarized below. The following chart sets forth the percentage of revenues
contributed by each of the Ñve product categories for our direct and retail businesses and in total in Ñscal
years 2004, 2003 and 2002.
Direct Retail Total
2004 2003 2002 2004 2003 2002 2004 2003 2002
Hunting Equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26.8% 27.5% 28.5% 32.2% 31.2% 30.1% 28.6% 28.6% 28.9%
Fishing & Marine ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13.1% 14.0% 13.9% 16.2% 16.4% 18.1% 14.1% 14.8% 15.0%
Camping Equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15.0% 14.8% 14.5% 11.1% 11.0% 10.8% 13.7% 13.7% 13.5%
Clothing & Footwear ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 40.1% 39.1% 38.5% 34.2% 35.2% 34.7% 38.1% 37.9% 37.6%
Gifts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5.0% 4.6% 4.6% 6.3% 6.2% 6.3% 5.5% 5.0% 5.0%
Hunting equipment. We provide equipment, accessories and consumable supplies for almost every
type of hunting and sport shooting. Our hunting products are supported by services including gun bore
sighting and scope mounting and archery technicians for bow tuning to service the complete needs of our
customer.
Fishing and marine equipment. We provide products for fresh water Ñshing, Öy-Ñshing, salt water
Ñshing and ice-Ñshing. We carry in excess of 20,000 types of lures and a broad selection of rods, reels and
combos. In addition, our Ñshing and marine equipment oÅering features a wide selection of electronics,
boats and accessories, canoes, kayaks and other Öoatation accessories.
Camping equipment. We primarily focus on outdoor gear for the outdoor enthusiast, augmented with
gear for family camping and the weekend hiker. In addition, we include automobile and ATV accessories
in this general category.
Clothing and footwear. Our clothing and footwear merchandise includes both technical gear and
lifestyle apparel and footwear for the active outdoor enthusiast as well as apparel and footwear for the
casual customer.
Gifts and home furnishings. Our gifts and home furnishings merchandise includes gifts, games, food
assortments, books, jewelry and home furnishings with an outdoor theme.
Private Label Products. In addition to national brands, we oÅer our exclusive Cabela's private label
merchandise. We have a signiÑcant penetration of private label merchandise in casual apparel and footwear
as well as in selected hard goods categories such as camping, Ñshing and optics. Where possible, we seek
to protect our private label products by applying for trademark or patent protection for these products. Our
private label products typically generate higher gross proÑt margins compared to our branded products. In
Ñscal 2004, our private label merchandise accounted for approximately one-third of our merchandise
revenues. By attempting to have an appropriate mix of branded and private label merchandise, we strive to
meet the expectations and needs of our customers.
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