Cabela's total revenue for the first quarter of fiscal 2005 increased 11.7% to a record $350.6 million compared to $313.9 million for the same period last year. First quarter net income was $7.8 million, or 12 cents per diluted share, compared to $8.0 million, or 14 cents per diluted share for the same period a year ago. As a result of the Company's recent public offering, weighted average diluted shares outstanding increased 12.7% to 66.3 million for the first quarter of fiscal 2005 compared to 58.8 million for the first quarter of fiscal 2004.

During the first quarter of fiscal 2005, direct revenue increased 11.4% to a record $229.4 million. Total retail revenue increased 7.4% to $97.2 million and same store sales decreased 6.3%, primarily due to the strong performance, during the first quarter of fiscal 2004, of the Company's Hamburg, Pennsylvania retail store. The Hamburg, Pennsylvania store contributed 4.5% to the same store sales decline. Financial services revenue increased 39.3% to $22.9 million for the first quarter of fiscal 2005.

Dennis Highby, Cabela's President and Chief Executive Officer commented, “Our financial results exceeded our internal expectations in terms of both revenue and profit during the first quarter. Our performance was highlighted by our second consecutive quarter of double digit revenue growth in our direct business, on a like calendar basis, underscoring the growing strength of the Cabela's brand in the marketplace. We were also pleased with the continued success of our financial services segment. We remain confident about our future prospects as we expand our retail presence geographically and further build on our leadership position in the industry.”

“We expected operating margins in the first quarter to be under some pressure as we accelerated pre-opening costs and grew over the success of last year's Hamburg store results,” Mr. Highby further commented. “We were able to mitigate some of the decline in operating margins in our direct and retail segments by leveraging our expenses for shared services and through the performance of our financial services segment. In fiscal 2005, with the benefit of four new stores expected to open and the continued success of our direct business, we expect to achieve or exceed our fiscal 2004 annual consolidated operating margin.

Mr. Highby continued, “During the quarter we also announced three additional new stores including Rogers, Minnesota, expected to open later this year, Gonzales, Louisiana, expected to open in 2006, and Reno, Nevada, expected to open in late 2006 or early 2007. All four of our stores scheduled to open in 2005 are currently on track. We expect to open at least eight new large-format destination retail stores over the next three years which will more than double our square footage and bring exposure to the Cabela's lifestyle to a much larger audience.”

Mr. Highby concluded, “After an historic year for our Company, highlighted by our initial public offering and record sales and earnings, we are pleased that our momentum has continued into fiscal 2005. We continue to expect our revenues and profits for fiscal 2005 to grow at a mid-teens rate. Looking ahead, we believe that the compelling combination of our direct business, destination retail stores, and financial services segment further distinguishes us from our peers and provides multiple growth opportunities in the years ahead. We remain confident that our strategy will allow us to continue to capture key market share and further our status as the World's Foremost Outfitter of hunting, fishing and outdoor gear.”

Finally, the Company would like to remind investors that it will be hosting its Annual Meeting of Stockholders on May 11, 2005, at the Holiday Inn in Sidney, Nebraska. A live webcast of the meeting will begin at 12:00 PM Eastern Time and can be accessed through the “Investor Relations” page of Cabela's website at Those interested in listening to the meeting should log on five minutes prior to the scheduled start time. An archived replay of the meeting will be available shortly after the live meeting.


(Dollar Amounts in Thousands Except Per Share
 and Share Amounts)
                                                  Three months ended
                                                 April 2,    April 3,
                                                   2005       2004
                                                ----------- ----------
  Merchandise sales                               $326,595   $296,359
  Financial services revenue                        22,916     16,447
  Other revenue                                      1,078      1,111
                                                ----------- ----------
           Total revenues                          350,589    313,917
                                                ----------- ----------

  Cost of merchandise sales                        213,369    186,973
  Cost of other revenue                                 (8)     1,702
                                                ----------- ----------
           Total cost of revenue (exclusive of
            depreciation and amortization)         213,361    188,675
                                                ----------- ----------
           Gross profit                            137,228    125,242

                                                ----------- ----------

OPERATING INCOME                                    11,023     12,703
                                                ----------- ----------

  Interest income                                      434        114
  Interest expense                                  (2,070)    (2,020)
  Other income, net                                  2,673      1,580
                                                ----------- ----------
                                                     1,037       (326)
                                                ----------- ----------
INCOME TAX EXPENSE                                   4,293      4,331
                                                ----------- ----------
NET INCOME                                          $7,767     $8,046
                                                =========== ==========

  Basic                                              $0.12      $0.14
                                                =========== ==========
  Diluted                                            $0.12      $0.14
                                                =========== ==========

  Basic                                         64,588,079 56,835,580
                                                ========== ===========
  Diluted                                       66,296,472 58,840,662
                                                ========== ===========