Cabelas 8-K Cabela’s Inc. Reports Second Quarter Fiscal 2007 Results

Exhibit 99

FOR IMMEDIATE RELEASE	Investor Contact:
	Chris Gay
	308-255-2905
	Cabela’s Incorporated
	Media Contact:
	Joe Arterburn
	308-255-1204
	Cabela’s Incorporated

CABELA’S INC. REPORTS SECOND QUARTER FISCAL 2007 RESULTS

-Q2 Total Revenue Increased 16.5% to a Q2 Record $451.2 Million

-Operating Income Increased 39.2% as Operating Margin Increased 70 bps

-Q2 Diluted EPS Increased 30.8% to $0.17

-Company Reaffirms Mid-Teens Growth Rate Targets for Full Fiscal 2007

SIDNEY, Neb. (August 2, 2007) – Cabela’s Incorporated (NYSE: CAB), the World’s Foremost Outfitter® of hunting, fishing and outdoor gear, today reported financial results for its second fiscal quarter ended June 30, 2007.

Total revenue for the second quarter of 2007 increased 16.5% to $451.2 million compared to $387.3 million for the second fiscal quarter of 2006.  Net income for the second quarter of 2007 increased to $11.3 million, or $0.17 per diluted share, compared to $8.4 million, or $0.13 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 Chief Executive Officer. “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.”

Conference Call Information

A conference call to discuss second quarter fiscal 2007 operating results is scheduled for today (Thursday, August 2, 2007) at 4:30 PM 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® 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®.  Through Cabela’s well-established direct business and its growing number of destination retail stores, 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® Visa credit card, which serves as its primary customer loyalty rewards program.

Caution Concerning Forward-Looking Statements

Statements in this press release that are not historical or current fact are "forward-looking statements" that are based on the Company’s beliefs, assumptions and expectations of future events, taking into account the information currently available to the Company.  Such forward-looking statements include, but are not limited to, the Company’s statements regarding its ability to achieve its long-term top and bottom line mid-teens growth rate targets for fiscal 2007 and its expectation of opening seven additional destination retail stores in 2007.  Forward-looking statements involve risks and uncertainties that may cause the Company’s actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition that the Company expresses or implies in any forward-looking statements.  These risks and uncertainties include, but are not limited to:  the ability to negotiate favorable purchase, lease and/or economic development arrangements for new destination retail store locations; expansion into new markets; market saturation due to new destination retail store openings; the acceleration of new destination retail store openings; the rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support the Company’s growth initiatives; increasing competition in the outdoor segment of the sporting goods industry; the cost of the Company’s products; supply and delivery shortages or interruptions caused by system changes or other factors; adverse weather conditions; unseasonal weather conditions which

impact the demand for the Company’s products; fluctuations in operating results; adverse economic conditions causing a decline in discretionary consumer spending; the cost of fuel increasing; delays in road construction and/or traffic planning around the Company’s new destination retail stores; road construction around the Company’s existing destination retail stores; labor shortages or increased labor costs; changes in consumer preferences and demographic trends; increased government regulation; inadequate protection of the Company’s intellectual property; decreased interchange fees received by the Company’s financial services business as a result of credit card industry litigation; other factors that the Company may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in the Company’s filings with the SEC (including the information set forth in the “Risk Factors” section of the Company's Form 10-K for the fiscal year ended December 30, 2006, and Form 10-Q for the fiscal quarter ended March 31, 2007), which filings are available at the Company’s website at www.cabelas.com and the SEC’s website at www.sec.gov.  Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements.  The Company’s forward-looking statements speak only as of the date they are made.  Other than as required by law, the Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

CABELA'S INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)
ASSETS	June 30, 2007		December 30, 2006		July 1, 2006
CURRENT ASSETS:
Cash and cash equivalents and short-term investments	$	80,229	$	172,903	$	120,658
Accounts receivable		31,154		37,812		26,542
Credit card loans held for sale		119,452		136,072		90,861
Credit card loans receivable		13,598		16,611		13,996
Inventories		523,925		484,414		461,805
Prepaid expenses and deferred catalog costs		47,161		42,502		43,846
Income taxes receivable		7,063		--		--
Other current assets		94,612		63,907		51,128
Total current assets		917,194		954,221		808,836
PROPERTY AND EQUIPMENT, NET		733,594		600,065		544,215
OTHER ASSETS:
Marketable securities		81,829		117,360		109,515
Other		78,082		79,584		65,376
Total other assets		159,911		196,944		174,891
TOTAL ASSETS	$	1,810,699	$	1,751,230	$	1,527,942
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	229,736	$	239,285	$	163,883
Unpresented checks net of bank balance		32,615		--		18,769
Accrued expenses and other liabilities		51,965		72,124		46,221
Gift certificates and credit card reward points		137,775		144,210		112,112
Accrued employee compensation and benefits		39,991		61,275		31,980
Time deposits		19,500		33,401		45,159
Short-term borrowings		27,000		6,491		--
Current maturities of long-term debt		26,738		26,803		27,704
Income taxes payable and deferred income taxes		17,863		35,245		11,235
Total current liabilities		583,183		618,834		457,063
LONG-TERM LIABILITIES		472,498		398,538		410,040
STOCKHOLDERS’ EQUITY		755,018		733,858		660,839
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,810,699	$	1,751,230	$	1,527,942

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, 2007			July 1, 2006			June 30, 2007			July 1, 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

Segment Information	Three Months Ended						Six Months Ended
(Dollars in Thousands)	June 30, 2007			July 1, 2006			June 30, 2007			July 1, 2006
Direct revenue	$	203,861		$	195,009		$	441,746		$	423,880
Retail revenue		199,563			151,449			384,317			296,792
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
Direct operating income	$	33,966		$	28,689		$	66,459		$	61,693
Retail operating income		22,108			16,504			39,463			29,240
Financial services operating income		8,833			7,091			17,392			14,126
Other operating loss		(44,655	)		(37,739	)		(90,671	)		(76,311	)
Total operating income	$	20,252		$	14,545		$	32,643		$	28,748
As a Percentage of Total Revenue:
Direct revenue		45.2	%		50.4	%		48.4	%		53.5	%
Retail revenue		44.2	%		39.1	%		42.1	%		37.5	%
Financial services revenue		9.1	%		8.5	%		8.4	%		7.8	%
Other revenue		1.5	%		2.0	%		1.1	%		1.2	%
Total revenue		100.0	%		100.0	%		100.0	%		100.0	%
As a Percentage of Segment Revenue:
Direct operating income		16.7	%		14.7	%		15.0	%		14.6	%
Retail operating income		11.1	%		10.9	%		10.3	%		9.9	%
Financial services operating income		21.5	%		21.5	%		22.7	%		22.9	%
Total operating income (1)		4.5	%		3.8	%		3.6	%		3.6	%

(1) The percentage of total operating income is a percentage of total consolidated revenue.

Financial Services Information:

The following table summarizes the results of the Company’s financial services segment on a generally accepted accounting principles (“GAAP”) basis.  For credit card loans securitized and sold, the loans are removed from the Company’s consolidated balance sheet and the net earnings on these securitized assets after paying outside investors are reflected as a component of securitization income on a GAAP basis.  Net interest income on a GAAP basis includes interest and fee income, interest expense and provision for loan losses for the credit card loans receivable the Company owns.  Non-interest income on a GAAP basis includes servicing income, gains on sales of loans and income recognized on retained interests, as well as interchange income on the entire managed portfolio.

Financial Services Revenue as Reported on a GAAP Basis:	Three Months Ended						Six Months Ended
(In Thousands)	June 30, 2007			July 1, 2006			June 30, 2007			July 1, 2006
Interest and fee income, net of provision for loan losses	$	6,334		$	4,503		$	11,094		$	10,988
Interest expense		(1,205	)		(1,174	)		(2,445	)		(2,301	)
Net interest income, net of provision for loan losses		5,129			3,329			8,649			8,687
Non-interest income:
Securitization income		50,026			42,061			93,636			75,780
Other non-interest income		11,308			9,370			22,480			18,081
Total non-interest income		61,334			51,431			116,116			93,861
Less: Customer rewards costs		(25,449	)		(21,740	)		(48,017	)		(40,994	)
Financial services revenue	$	41,014		$	33,020		$	76,748		$	61,554

“Managed” credit card loans represent credit card loans receivable owned by the Company plus securitized credit card loans.  Since the financial performance of the managed portfolio has a significant impact on the earnings received from servicing the portfolio, the Company believes the following table (see next page) on a “managed” basis is important information to analyze revenue in the financial services segment.  The following non-GAAP presentation reflects the financial performance of the credit card loans receivable owned by the Company plus those that have been sold and includes the effect of recording the retained interest at fair value.  Interest income, interchange income (net of customer rewards) and fee income on both the owned and securitized portfolio are recorded in their respective line items.  Interest paid to outside investors on the securitized credit card loans is included with other interest costs and included in interest expense.  Credit losses on the entire managed portfolio are included in provision for loan losses.  Although the Company’s consolidated financial statements are not presented in this manner, management reviews the performance of the managed portfolio in order to evaluate the effectiveness of the Company’s origination and collection activities, which ultimately affects the income received for servicing the portfolio.

Managed Financial Services Revenue Presented on Non-GAAP Basis:	Three Months Ended						Six Months Ended
(Dollars in Thousands)	June 30, 2007			July 1, 2006			June 30, 2007			July 1, 2006
Interest income	$	43,738		$	33,549		$	87,545		$	66,463
Interchange income, net of customer rewards costs		16,285			12,889			29,750			23,993
Other fee income		6,039			5,310			12,077			10,473
Interest expense		(19,551	)		(15,300	)		(38,411	)		(29,327	)
Provision for loan losses		(7,110	)		(6,050	)		(14,443	)		(11,912	)
Other		1,613			2,622			230			1,864
Managed financial services revenue	$	41,014		$	33,020		$	76,748		$	61,554
Managed Financial Services Revenue as a Percentage of Average Managed Credit Card Loans:
Interest income		10.9	%		10.4	%		11.1	%		10.4	%
Interchange income, net of customer rewards costs		4.1	%		4.0	%		3.8	%		3.8	%
Other fee income		1.5	%		1.6	%		1.5	%		1.6	%
Interest expense		(4.9	)%		(4.7	)%		(4.9	)%		(4.6	)%
Provision for loan losses		(1.8	)%		(1.9	)%		(1.8	)%		(1.9	)%
Other		0.4	%		0.8	%		0.0	%		0.4	%
Managed financial services revenue		10.2	%		10.2	%		9.7	%		9.7	%
Average reported credit card loans	$	140,609		$	127,638		$	141,021		$	125,262
Average managed credit card loans	$	1,606,616		$	1,295,131		$	1,583,918		$	1,274,653

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