Cabela’s Q1 Comps Slip 0.8%; Sales Jump 16.5%

Cabela's Incorporated saw total revenue for the second quarter jump 16.5% to $451.2 million from $387.3 million for the year-ago period. Net income for the second quarter of 2007 increased 34.5% to $11.3 million, or 17 cents per diluted share, compared to $8.4 million, or 13 cents per diluted share, for the second fiscal quarter of 2006.

The company had strong second quarter revenues in each of its business segments compared to the same period a year ago. Direct revenue increased $8.9 million, or 4.5%, to $203.9 million; and financial services revenue increased 24.2% to $41.0 million. Total retail revenue increased 31.8% to $199.6 million, which included a same store sales decrease of 0.8%. The company has seen an improvement in same store sales early in the third quarter and remains focused on generating positive same store sales for the year.

“During the second quarter, we generated significant sales and profit gains across each business segment,” said Dennis Highby, Cabela's president and CEO. “We were particularly pleased with our ability to achieve a 130 basis point increase in merchandise gross margin, which helped drive a 200 basis point increase in operating margin in our direct business and a 20 basis point increase in operating margin in our retail business. These results demonstrate our ability to cut costs and improve efficiencies while maintaining the highest level of customer service.

“Our record performance during the first half of fiscal 2007 highlights the strength of our brand, the compelling nature of our operating model and our ongoing commitment to excellence and execution across our entire organization.

“We also continued to grow our retail presence during the quarter, opening our Hazelwood, Missouri, store in April and announcing plans to build a new store in Greenwood, Indiana, next year,” Highby said. “And, we remain on track to open seven new stores in 2007. By year's end, we will have a total of 26 stores in operation, accounting for approximately 4.0 million retail square feet.”

“As we head into our peak selling season, we are confident about our leadership position in the marketplace and our ability to achieve our long-term top and bottom line mid-teens growth rate targets for fiscal 2007,” Highby said. “We remain the world's foremost outfitter of hunting, fishing and outdoor gear, and we are dedicated to further building on our leadership status in the industry and capitalizing on the many growth 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       Six Months Ended
                       ----------------------- -----------------------
                        June 30,     July 1,    June 30,     July 1,
                           2007        2006        2007        2006
                       -----------------------------------------------
REVENUE:
  Merchandise sales    $   403,424 $   346,458 $   826,063 $   720,672
  Financial services
   revenue                  41,014      33,020      76,748      61,554
  Other revenue              6,761       7,785      10,479       9,842
                       ----------- ----------- ----------- -----------
    Total revenue          451,199     387,263     913,290     792,068
                       ----------- ----------- ----------- -----------

COST OF REVENUE:
  Cost of merchandise
   sales                   258,449     226,449     536,495     468,332
  Cost of other
   revenue                   1,648       3,070       1,634       3,476
                       ----------- ----------- ----------- -----------
    Total cost of
     revenue
     (exclusive of
     depreciation and
     amortization)         260,097     229,519     538,129     471,808

SELLING, GENERAL AND
 ADMINISTRATIVE
 EXPENSES                  170,850     143,199     342,518     291,512
                       ----------- ----------- ----------- -----------
OPERATING INCOME            20,252      14,545      32,643      28,748
                       ----------- ----------- ----------- -----------

OTHER INCOME
 (EXPENSE):
  Interest income              427         936       1,663       1,337
  Interest expense         (4,836)     (4,791)     (9,470)     (8,135)
  Other income, net          2,153       2,623       4,349       5,600
                       ----------- ----------- ----------- -----------
     Total other
      income (expense)     (2,256)     (1,232)     (3,458)     (1,198)
                       ----------- ----------- ----------- -----------

INCOME BEFORE
 PROVISION FOR INCOME
 TAXES                      17,996      13,313      29,185      27,550

PROVISION FOR INCOME
 TAXES                       6,732       4,957      10,779      10,111
                       ----------- ----------- ----------- -----------

NET INCOME             $    11,264 $     8,356 $    18,406 $    17,439
                       =========== =========== =========== ===========

EARNINGS PER SHARE:
  Basic                $      0.17 $      0.13 $      0.28 $      0.27
                       =========== =========== =========== ===========

  Diluted              $      0.17 $      0.13 $      0.27 $      0.26
                       =========== =========== =========== ===========

WEIGHTED AVERAGE
 SHARES OUTSTANDING:
  Basic                 65,782,822  65,201,266  65,639,217  65,135,553
                       =========== =========== =========== ===========

  Diluted               67,111,798  66,401,158  67,251,708  66,422,914
                       =========== =========== =========== ===========