Cabela’s Incorporated 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 80 cents per diluted share, compared to $42.5 million, or 64 cents 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.”

    CABELA'S INCORPORATED AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF INCOME
           (Dollars in Thousands Except Earnings Per Share)
                             (Unaudited)
----------------------------------------------------------------------
                      Three Months Ended         Fiscal Year Ended
                   December 30, December 31, December 30, December 31,
                       2006         2005         2006         2005
                   ------------ ------------ ------------ ------------
REVENUE:
  Merchandise
   sales           $   737,308  $   646,726  $ 1,908,801  $ 1,664,272
  Financial
   services
   revenue              38,477       28,903      137,423      105,831
  Other revenue          5,218         (182)      17,300       29,558
                   ------------ ------------ ------------ ------------
   Total revenue       781,003      675,447    2,063,524    1,799,661
                   ------------ ------------ ------------ ------------

COST OF REVENUE:
  Cost of
   merchandise
   sales               440,772      388,188    1,199,851    1,044,028
  Cost of other
   revenue               1,654         (933)       4,548       20,294
                   ------------ ------------ ------------ ------------
   Total cost of
    revenue
    (exclusive of
    depreciation
    and
    amortization)      442,426      387,255    1,204,399    1,064,322

SELLING, GENERAL
 AND
 ADMINISTRATIVE
 EXPENSES              250,431      219,334      715,380      620,376
                   ------------ ------------ ------------ ------------
OPERATING INCOME        88,146       68,858      143,745      114,963
                   ------------ ------------ ------------ ------------

OTHER INCOME
 (EXPENSE):
  Interest income          197          128        1,821          672
  Interest expense      (5,018)      (2,991)     (17,947)     (10,928)
  Other income,
   net                   2,037        2,701        9,637       10,663
                   ------------ ------------ ------------ ------------
   Total other
    income
    (expense)           (2,784)        (162)      (6,489)         407
                   ------------ ------------ ------------ ------------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES           85,362       68,696      137,256      115,370

PROVISION FOR
 INCOME TAXES           32,010       26,185       51,471       42,801
                   ------------ ------------ ------------ ------------

NET INCOME         $    53,352  $    42,511  $    85,785  $    72,569
                   ============ ============ ============ ============

EARNINGS PER
 SHARE:
  Basic            $      0.82  $      0.66  $      1.32  $      1.12
                   ============ ============ ============ ============

  Diluted          $      0.80  $      0.64  $      1.29  $      1.10
Diluted          $      0.80  $      0.64  $      1.29  $      1.10
                   ============ ============ ============ ============

WEIGHTED AVERAGE
 SHARES
 OUTSTANDING:
  Basic             65,342,380   64,747,818   65,221,339   64,668,973
                   ============ ============ ============ ============

  Diluted           66,968,267   66,098,866   66,643,856   66,268,374