Cabela’s total revenue for the third quarter of fiscal 2007 increased 11.5% to a $546.8 million compared to $490.5 million for the same period last year. Third quarter net income was $13.2 million, or 20 cents per diluted share, compared to $15.0 million, or 23 cents per diluted share, for the same period a year ago. Direct revenue increased 4.2% to $241.9 million, total retail revenue increased 17.7% to $257.3 million and same store sales increased 4.6%. Financial services revenue increased 19.7% to $44.7 million for the third quarter of fiscal 2007.

Total revenue for the nine months ended September 29, 2007, increased 13.8% to $1.46 billion compared to $1.28 billion for the same period last year. Net income for the nine months was $31.6 million, or 47 cents per diluted share, compared to $32.4 million, or 49 cents per diluted share, for the nine months ended September 30, 2006.

“We are pleased to report another quarter of double digit revenue growth, highlighted by a 4.6% increase in same store sales,” said Dennis Highby, Cabela’s President and Chief Executive Officer. “Our third quarter results were impacted by higher promotional activity, resulting in lower margins, and two stores, opened in 2006, that did not meet the Company’s sales expectations.

“During the quarter, we opened a retail store in Hoffman Estates, Illinois, acquired S.I.R. Warehouse Sports Store, a Canadian specialty retailer of outdoor merchandise, and announced plans for a store in Billings, Montana, expected to open in the summer of 2008,” Highby said. “We are on schedule to open six additional stores during the fourth quarter, including East Hartford, Connecticut; Gonzales, Louisiana; and Hammond, Indiana; all of which recently opened. Reno, Nevada; Post Falls, Idaho; and Lacey, Washington, are all slated to open in November. As a result of these store openings, we saw an increase in our pre-opening expenses of $3.3 million during the quarter compared to the year ago quarter.

“For the full year of 2007, we expect diluted earnings per share to increase at a high single digit growth rate,” Highby said. “Additionally, we expect to open seven new stores in 2008, and we are highly confident in our ability to successfully execute our retail rollout strategy and grow revenue and earnings per share consistent with our long-term mid-teens growth expectations.”

Mr. Highby concluded, “Although these results were below our expectations, we remain confident that our powerful brand and multi-channel business model will allow us to continue to increase market share and significantly expand our business into the future. We remain focused on further building upon our leadership position in the industry and fully capitalizing on the many opportunities that lie ahead.”

CABELA'S INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands Except Earnings Per Share)

(Unaudited)

Three Months Ended

Nine Months Ended
September 29,

September 30, September 29,

September 30,

2007

2006

2007

2006

REVENUE:
Merchandise sales $ 499,182 $ 450,821 $ 1,325,245 $ 1,171,493
Financial services revenue 44,749 37,392 121,497 98,946
Other revenue

2,878

2,240

13,357

12,082

Total revenue

546,809

490,453

1,460,099

1,282,521

COST OF REVENUE:
Cost of merchandise sales 322,547 290,747 859,042 759,079
Cost of other revenue

37

(582 )

1,671

2,894

Total cost of revenue (exclusive of depreciation and amortization) 322,584 290,165 860,713 761,973

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

199,879

173,437

542,397

464,949

OPERATING INCOME

24,346

26,851

56,989

55,599

OTHER INCOME (EXPENSE):
Interest income 42 287 1,705 1,624
Interest expense (4,220 ) (4,794 ) (13,690 ) (12,929 )
Other income, net

1,004

2,000

5,353

7,600

Total other income (expense)

(3,174 )

(2,507 )

(6,632 )

(3,705 )

INCOME BEFORE PROVISION FOR INCOME TAXES 21,172 24,344 50,357 51,894

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