Cabela's Inc. Reports Record Results for Fourth Quarter and Fiscal 2006 Year End.

- Q4 Total Revenue Increased Approximately 16% to a Record $781.0 Million with Same Store Sales Increasing 1.7%

- Company Reported Q4 Diluted EPS of $0.80

- Fiscal 2006 Total Revenue Increased Approximately 15% to a Record $2.06 Billion

- Company Reported Fiscal 2006 Diluted EPS of $1.29

- Fiscal 2006 Operating Income Margin Increased 60 Basis Points

SIDNEY, Neb. -- Cabela's Incorporated (NYSE: CAB), the World's Foremost Outfitter[R] of hunting, fishing and outdoor gear, today reported financial results for its fourth fiscal quarter and fiscal year ended December 30, 2006.

Total revenue for the fourth fiscal quarter of 2006 increased 15.6% to $781.0 million compared to $675.4 million for the fourth fiscal quarter of 2005. Net income for the fourth fiscal quarter of 2006 increased 25.5% to $53.4 million, or $0.80 per diluted share, compared to $42.5 million, or $0.64 per diluted share, for the fourth fiscal quarter of 2005.

The Company had a strong fourth fiscal quarter in each of its business segments compared to the same period a year ago. Direct revenue increased $25.2 million, or 6.2%, to $432.4 million; total retail revenue increased 27.3% to $304.9 million with a same store sales increase of 1.7%; and financial services revenue increased 33.1% to $38.5 million.

"Our record fourth quarter results represent an extremely gratifying way to end another important year for Cabela's," said Dennis Highby, Cabela's President and Chief Executive Officer. "During the quarter, we generated solid gains across all our business segments, and this positive momentum continues as we enter fiscal 2007."

Total revenue for fiscal 2006 increased 14.7% to a Company record of $2.06 billion compared to $1.80 billion in fiscal 2005. Net income for fiscal 2006 increased 18.2% to $85.8 million compared to $72.6 million for fiscal 2005. Earnings per share increased 17.3% to $1.29 per diluted share compared to $1.10 per diluted share for fiscal 2005.

Each of the Company's three main business segments grew in fiscal 2006 compared to fiscal 2005. Direct revenue increased 4.2% to $1.09 billion; retail revenue increased 32.3% to $820.3 million with a same store sales increase of 1.3%; and financial services revenue increased 29.9% to $137.4 million. During fiscal 2006, the Company opened four new destination retail stores to end the year with 18 stores with approximately 2.7 million retail square feet, representing a 29% increase in square footage over fiscal 2005.

"We are particularly pleased with the many accomplishments achieved throughout the year," Highby said. "Financially, we surpassed the $2 billion revenue mark, increased diluted EPS by over 17%, and achieved our mid-teens growth targets. In addition, our operating margin increased to 7.0% for fiscal 2006 compared to 6.4% for fiscal 2005. We anticipate continued improvement in our operating margin for full fiscal year 2007."

"From an operational standpoint, we effectively implemented a series of initiatives to increase efficiencies, including enhancing our in-store merchandising, improving our retail stock position, installing a new warehouse management system in our distribution centers and implementing phase one of the JDA merchandise management system."

"At the same time, we significantly increased our national footprint, successfully opening four new destination retail stores to end the year with 18 stores in operation, and further solidifying Cabela's leadership position in the marketplace."

"We are more energized and excited than ever as we enter 2007," Highby said. "Our ongoing success is directly related to our unique position in the market, and equally important, the hard work, passion, and dedication of our exceptional people. Cabela's powerful multi-channel model continues to provide us with a competitive advantage, and we remain committed to fully capitalizing on the many growth opportunities that lie ahead."

Conference Call Information

A conference call to discuss fourth quarter and fiscal 2006 operating results is scheduled for today (Thursday, February 22) at 4:30 PM Eastern Time. A webcast of the call will take place simultaneously and can be accessed by visiting the Investor Relations section of Cabela's website at www.cabelas.com. A replay of the call will be archived on www.cabelas.com.

About Cabela's Incorporated

Cabela's Incorporated, headquartered in Sidney, Nebraska, is the world's largest direct marketer, and a leading specialty retailer, of hunting, fishing, camping and related outdoor merchandise. Since the Company's founding in 1961, Cabela's[R] has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World's Foremost Outfitter[R]. Through Cabela's well-established direct business and its growing number of destination retail stores, it offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela's also issues the Cabela's CLUB[R] Visa credit card, which serves as its primary customer loyalty rewards program.

Caution Concerning Forward-Looking Statements 

Statements in this press release that are not historical or current fact are "forward-looking statements" that are based on the Company's beliefs, assumptions and expectations of future events, taking into account the information currently available to the Company. Such forward-looking statements included, but are not limited to, the Company's statement regarding continued improvement in its operating margin for full fiscal year 2007. Forward-looking statements involve risks and uncertainties that may cause the Company's actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that the Company expresses or implies in any forward-looking statements. These risks and uncertainties include, but are not limited to: the ability to negotiate favorable purchase, lease and/or economic development arrangements; expansion into new markets; market saturation due to new destination retail store openings; the acceleration of new destination retail store openings; the rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support the Company's growth initiatives; increasing competition in the outdoor segment of the sporting goods industry; the cost of the Company's products; supply and delivery shortages or interruptions caused by system changes or other factors; adverse weather conditions; unseasonal weather conditions which impact the demand for the Company's products; fluctuations in operating results; adverse economic conditions causing a decline in discretionary consumer spending; the cost of fuel increasing; delays in road construction and/or traffic planning around the Company's new destination retail stores; road construction around the Company's existing destination retail stores; labor shortages or increased labor costs; changes in consumer preferences and demographic trends; increased government regulation; inadequate protection of the Company's intellectual property; decreased interchange fees received by the Company's financial services business as a result of credit card industry litigation; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the Company's filings with the SEC (including the information set forth in the "Risk Factors" section of the Company's Form 10-K/A for the fiscal year ended December 31, 2005), which filings are available at the Company's website at www.cabelas.com and the SEC's website at www.sec.gov. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. The Company's forward-looking statements speak only as of the date they are made. Other than as required by law, the Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

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Financial Services Information:

The following table summarizes the results of the Company's Financial Services segment on a generally accepted accounting principles ("GAAP") basis. For credit card loans securitized and sold, the loans are removed from the Company's consolidated balance sheet and the net earnings on these securitized assets after paying outside investors are reflected as a component of securitization income on a GAAP basis. Net interest income on a GAAP basis includes interest and fee income, interest expense and provision for loan losses for the credit card loans receivable the Company owns. Non-interest income on a GAAP basis includes servicing income, gains on sales of loans and income recognized on retained interests, as well as interchange income on the entire managed portfolio.

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"Managed" credit card loans represent credit card loans receivable owned by the Company plus securitized credit card loans. Since the financial performance of the managed portfolio has a significant impact on the earnings received from servicing the portfolio, the Company believes the following table (see next page) on a "managed" basis is important information to analyze revenue in the Financial Services segment. The following non-GAAP presentation reflects the financial performance of the credit card loans receivable owned by the Company plus those that have been sold and includes the effect of recording the retained interest at fair value. Interest income, interchange income (net of customer rewards) and fee income on both the owned and securitized portfolio are recorded in their respective line items. Interest paid to outside investors on the securitized credit card loans is included with other interest costs and included in interest expense. Credit losses on the entire managed portfolio are included in provision for loan losses. Although the Company's consolidated financial statements are not presented in this manner, management reviews the performance of the managed portfolio in order to evaluate the effectiveness of the Company's origination and collection activities, which ultimately affects the income received for servicing the portfolio.

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