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Cabela’s CEO Tommy Millner Appointed to Wildlife and Hunting Heritage Conservation Council
Council members will advise Departments of Interior and Agriculture on wildlife and conservation endeavors.

Cabelas.com

SIDNEY, Neb., --(Ammoland.com)- Cabela’s Incorporated (NYSE:CAB) announced the recent appointment of Chief Executive Officer Tommy Millner to the Wildlife and Hunting Heritage Conservation Council, an official advisory group established by U.S. Secretary of Interior Ken Salazar and U.S. Secretary of Agriculture Tom Vilsack to provide input on wildlife and conservation endeavors.

The 18-member council includes representatives of national organizations, resource management agencies, outreach groups, tourism industries, tribal commissions and the community at large – all with strong ties to hunting, wildlife and shooting sports – who will serve two-year terms effective immediately.

“Dating back to President Theodore Roosevelt, our nation’s hunters have taken the lead in the conservation of wildlife and its habitat,” Salazar said.

“They have contributed billions of dollars through licenses, permits, and excise taxes to conservation programs and they have been among the most ardent volunteers through a wide variety of sportsmen’s organizations.”

Millner, the only appointee representing a retail corporation, and other council members are also charged with preserving America’s hunting heritage for future generations through the development of policies and programs aimed at conserving wildlife populations and their habitat.

“I’m honored to be included in such a coordinated effort to keep our country’s hunting traditions strong,” Millner said.

“I look forward to serving Secretaries Salazar and Vilsack, who clearly value the enduring legacy of American conservation that Cabela’s has long celebrated and strived to uphold.”

The new council replaces and improves upon the previously existing Sporting Conservation Council by expanding membership to include the hunting and shooting sports industries, as well as including broader representation from the nation’s major hunting organizations.

The council’s charter also more clearly defines its responsibilities in supporting the public, the sporting conservation community, the shooting and hunting sports industry, wildlife conservation organizations, and state and federal governments.

Appointees to the Wildlife and Hunting Heritage Conservation Council:

* Tommy Millner (Cabela’s Inc.)
* M. David Allen (Rocky Mountain Elk Foundation)
* Jeffrey S. Crane (Congressional Sportsmen’s Foundation)
* Robert R. Fithian (Alaska Professional Hunters Association, Inc.)
* John E. Frampton (South Carolina Department of Natural Resources)
* Thomas Franklin (Theodore Roosevelt Conservation Partnership)
* Ron Heward (rancher, Bates Hole/Shirley Basin Sage Grouse Working Group)
* Robert Manes (The Nature Conservancy)
* Frederick D. Maulson (Great Lakes Indian Fish & Wildlife Commission)
* Robert Model (Boone and Crockett Club)
* Joanna Prukop (Freedom to Roam)
* Stephen L. Sanetti (National Shooting Sports Foundation)
* Larry Schweiger (National Wildlife Federation)
* Christine L. Thomas (College of Natural Resources, University of Wisconsin)
* George C. Thornton (National Wild Turkey Federation)
* John Tomke (Ducks Unlimited)
* Howard K. Vincent (Pheasants Forever)
* Steve Williams (Wildlife Management Institute)

About Cabela’s Incorporated
Cabela’s Incorporated, headquartered in Sidney, Nebraska, is a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping and related outdoor merchandise. Since the Company’s founding in 1961, Cabela’s(R) has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World’s Foremost Outfitter(R). Through Cabela’s growing number of retail stores and its well-established direct business, it offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela’s also issues the Cabela’s CLUB(R) Visa credit card, which serves as its primary customer loyalty rewards program. Cabela’s stock trades on the New York Stock Exchange under the symbol “CAB.”

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Cabela’s Inc. Reports Strong Profitability Increases

• -Second Quarter Earnings Per Share of $0.26
• -Retail Operating Margins Expand 270 Basis Points
• -Merchandise Gross Margins Increased 80 Basis Points
• -Comparable Store Sales Declined 4.6%
• -Return on Invested Capital Increases 120 Basis Points
• -Year-To-Date Cash Flow From Operations Improves $73 Million

Cabelas.com

SIDNEY, Neb., --(Ammoland.com)- Cabela’s Incorporated (NYSE:CAB) today reported record second quarter fiscal 2010 earnings.

For the quarter, consolidated operating income increased 62% to $30.7 million compared to $18.9 million in the second quarter of 2009. Operating margins increased 240 basis points to 5.8% compared to 3.4% in the second quarter of 2009. Increases in operating profit were due to the strong performance of World’s Foremost Bank, higher merchandise gross margins and lower impairment and restructuring charges. For the quarter, net income increased 98% to $18.0 million, or $0.26 per diluted share, compared to $9.1 million, or $0.14 per diluted share, in the second quarter of 2009.

For the quarter, adjusted for divestitures, total revenue decreased 3.3% to $526 million; retail store revenue decreased 2.5% to $294 million; direct revenue decreased 11.7% to $172 million; and comparable store sales decreased 4.6%. Financial services revenue increased 28% to $56 million.

“We are pleased that our strong focus on improving return on capital is working,” said Tommy Millner, Cabela’s Chief Executive Officer. “This success is a result of our efforts to improve inventory productivity, expand the profitability of our retail stores and increase merchandise gross margins. While the number of transactions at retail was lower than our expectations during the quarter, we are pleased that average ticket in our retail business was up nearly 5%. For the quarter, retail profitability improved 270 basis points, return on invested capital improved 120 basis points and overall Company operating margin expanded 240 basis points. We expect these positive trends to continue for the remainder of the year.”

“Merchandise margins expanded 80 basis points to 35.9% in the quarter, the biggest increase we have seen in recent years,” Millner said. “It is particularly pleasing that margins increased in 4 of our 5 merchandise categories during the quarter. Three ongoing initiatives contributed significantly to margin expansion in the quarter: better inventory management, which reduced the need to mark down product, improvements in vendor collaboration and advancements in price optimization during the season. These broad-based improvements give us confidence that margin expansion will continue throughout this year and next.”

“We are less pleased with the revenue decrease we experienced in our direct segment, since this was primarily of our own doing,” Millner said. “We went a bit too far in our inventory reduction initiatives, which resulted in fill rates in our direct business being significantly lower than prior year. Additionally, we mailed fewer clearance catalogs in the quarter due to reduced levels of problematic inventory. Also, our direct business was impacted by a decrease in the sale of ammunition and reloading supplies. We expect the impact of these factors to largely disappear by the fall selling season.”

Exclusive of impairment and other special charges, for the quarter, net income was $19.4 million compared to $11.2 million in the second quarter of 2009 and diluted earnings per share were $0.28 compared to $0.17 in the second quarter of 2009. A detailed reconciliation is provided at the end of this release.

For the quarter, managed financial services revenue as a percentage of managed credit card loans improved 160 basis points primarily due to lower provision for loan losses, higher interchange, interest, and fee income and lower interest expense. For the quarter, average net charge-offs were 4.78% compared to 5.24% in the second quarter of 2009. This is the lowest absolute charge-off rate realized in the past year. As a result of continued favorable charge-off trends and a more favorable outlook for charge-offs for the remainder of the year, provision for loan losses for the quarter was $16.6 million. Given continued favorable trends related to charge-offs, average net charge-offs at World’s Foremost Bank are expected to be between 5.0 and 5.5% for 2010 as compared to previous guidance of 5.25 to 5.75%.

As of July 3, 2010, inventories totaled $513 million, a decrease of 13% compared to inventories of $587 million as of June 27, 2009. For the year to date period, cash flow from operations improved $73 million. Total debt as of July 3, 2010, was $383 million compared to $490 million as of June 27, 2009, a decrease of $107 million or 22%.

“We are pleased with our continued progress controlling costs, driving operational excellence, strengthening our balance sheet and increasing Cabela’s brand loyalty through the operations of World’s Foremost Bank,” Millner said. “Given our strong second quarter results, we expect earnings per share for 2010, exclusive of impairment and other special charges, to meet or exceed current expectations.”

Conference Call Information
A conference call to discuss second quarter fiscal 2010 operating results is scheduled for today (Thursday, July 29, 2010) at 11:00 a.m. Eastern Time. A webcast of the call will take place simultaneously and can be accessed by visiting the Investor Relations section of Cabela’s website at www.cabelas.com. A replay of the call will be archived on www.cabelas.com.

About Cabela’s Incorporated
Cabela’s Incorporated, headquartered in Sidney, Nebraska, is the world’s largest direct marketer, and a leading specialty retailer, of hunting, fishing, camping and related outdoor merchandise. Since the Company’s founding in 1961, Cabela’s(R) has grown to become one of the most well-known outdoor recreation brands in the world, and has long been recognized as the World’s Foremost Outfitter(R). Through Cabela’s growing number of retail stores and its well-established direct business, it offers a wide and distinctive selection of high-quality outdoor products at competitive prices while providing superior customer service. Cabela’s also issues the Cabela’s CLUB(R) Visa credit card, which serves as its primary customer loyalty rewards program. Cabela’s stock is traded on the New York Stock Exchange under the symbol “CAB”.

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