For the third quarter of fiscal 2005, Cabela's expects to report a 12% increase in consolidated revenues with diluted earnings per share at or slightly below the same period last year, which was an exceptionally strong quarter. For the third quarter of fiscal 2004, the Company reported diluted earnings per share of $0.25 and a 61% increase in net income due primarily to strength in the Company's retail division. The Company anticipates that direct revenue will be equal to a year ago levels while total retail revenue is expected to increase roughly 23% and same store sales are expected to decrease in the range of 8% – 9%. The Company also stated that financial services revenue is forecasted to increase approximately 46% for the third quarter of fiscal 2005.

Dennis Highby, Cabela's President and Chief Executive Officer, commented, “During the quarter, both our direct and retail businesses were impacted by higher fuel prices that resulted in both lower consumer spending and lower gross margins. Additionally, our direct revenue was impacted by the devastating damage to Louisiana, Mississippi, Alabama, Texas and Florida and the brief, but dramatic, impact of customers focusing on 'hurricane news' rather than spending. Including the impact of the third quarter, for the nine months ended October 1, 2005, we continue to achieve results consistent with our long-term growth objectives. For the nine month period, consolidated revenues will increase approximately 15%, while consolidated net income is expected to increase approximately 13%.”