----

|   |   |                                                                                    |
|--------|--------|-----------------------------------------------------------------------------------------|
| x      |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|    | For the quarterly period ended July 3, 2010 |
|--------------|---------------------------------------------|

| o |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------|------------------------------------------------------------------------------------------|

| Delaware                                                      |   | 20-0486586                             |
|---------------------------------------------------------------|--------|----------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |
|                                                          |   |                                   |
| One Cabela Drive, Sidney, Nebraska                            |   | 69160                                  |
| (Address of principal executive offices)                      |   | (Zip Code)                             |

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TABLE OF CONTENTS 

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|                                 |                                                                                        | Page  |
|--------------------------------------|---------------------------------------------------------------------------------------------|------------|
| PART I – FINANCIAL INFORMATION |   3                                                                                    |
|                                 |                                                                                        |       |
| Item 1.                              | Financial Statements                                                                        |   3   |
|                                 |                                                                                        |       |
|                                 | Condensed Consolidated Statements of Income                                                 |   3   |
|                                 |                                                                                        |       |
|                                 | Condensed Consolidated Balance Sheets                                                       |  4    |
|                                 |                                                                                        |       |
|                                 | Condensed Consolidated Statements of Cash Flows                                             |   5   |
|                                 |                                                                                        |       |
|                                 | Condensed Consolidated Statements of Stockholders’ Equity                             |   6   |
|                                 |                                                                                        |       |
|                                 | Notes to Condensed Consolidated Financial Statements                                        |   7   |
|                                 |                                                                                        |       |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   32  |
|                                 |                                                                                        |       |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                  |   69  |
|                                 |                                                                                        |       |
| Item 4.                              | Controls and Procedures                                                                     |   71  |
|                                 |                                                                                        |       |
| PART II – OTHER INFORMATION    |   72                                                                                   |
|                                 |                                                                                        |       |
| Item 1.                              | Legal Proceedings                                                                           |   72  |
|                                 |                                                                                        |       |
| Item 1A.                             | Risk Factors                                                                                |   72  |
|                                 |                                                                                        |       |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   74  |
|                                 |                                                                                        |       |
| Item 3.                              | Defaults Upon Senior Securities                                                             |   74  |
|                                 |                                                                                        |       |
| Item 4.                              | (Removed and Reserved)                                                                      |   74  |
|                                 |                                                                                        |       |
| Item 5.                              | Other Information                                                                           |   74  |
|                                 |                                                                                        |       |
| Item 6.                              | Exhibits                                                                                    |   74  |
|                                 |                                                                                        |       |
| SIGNATURES                           |   75                                                                                   |
|                                 |                                                                                        |       |
| INDEX TO EXHIBITS                    |   76                                                                                   |

----

Table of Contents

| PART I - FINANCIAL INFORMATION                                           |   |
|--------------------------------------------------------------------------|--------|
| Item 1. Financial Statements                                             |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| CABELA'S INCORPORATED AND SUBSIDIARIES                                   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME                              |   |
| (Dollars in Thousands Except Earnings Per Share)                         |   |
| (Unaudited)                                                              |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                     |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |
|                                                                     |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenue:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Merchandise sales                                                        |   | $ | 465,491 |   |   | $ | 501,145 |   |   | $ | 959,527 |   |   | $ | 1,002,023 |   |
| Financial services revenue                                               |   |   | 56,488 |   |   |   | 44,129 |   |   |   | 116,472 |   |   |   | 78,023 |   |
| Other revenue                                                            |   |   | 3,991 |   |   |   | 3,962 |   |   |   | 9,581 |   |   |   | 8,730 |   |
| Total revenue                                                            |   |   | 525,970 |   |   |   | 549,236 |   |   |   | 1,085,580 |   |   |   | 1,088,776 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total cost of revenue (exclusive of depreciation and amortization)       |   |   | 299,649 |   |   |   | 326,060 |   |   |   | 629,084 |   |   |   | 652,374 |   |
| Selling, distribution, and administrative expenses                       |   |   | 193,818 |   |   |   | 192,536 |   |   |   | 408,054 |   |   |   | 391,758 |   |
| Impairment and restructuring charges                                     |   |   | 1,834 |   |   |   | 11,692 |   |   |   | 1,834 |   |   |   | 13,370 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                         |   |   | 30,669 |   |   |   | 18,948 |   |   |   | 46,608 |   |   |   | 31,274 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                                    |   |   | (5,671 | ) |   |   | (6,054 | ) |   |   | (11,125 | ) |   |   | (11,888 | ) |
| Other non-operating income, net                                          |   |   | 1,786 |   |   |   | 1,654 |   |   |   | 3,524 |   |   |   | 3,700 |   |
| Income before provision for income taxes                                 |   |   | 26,784 |   |   |   | 14,548 |   |   |   | 39,007 |   |   |   | 23,086 |   |
| Provision for income taxes                                               |   |   | 8,760 |   |   |   | 5,425 |   |   |   | 12,892 |   |   |   | 8,835 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                               |   | $ | 18,024 |   |   | $ | 9,123 |   |   | $ | 26,115 |   |   | $ | 14,251 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                                 |   | $ | 0.27 |   |   | $ | 0.14 |   |   | $ | 0.39 |   |   | $ | 0.21 |   |
| Diluted earnings per share                                               |   | $ | 0.26 |   |   | $ | 0.14 |   |   | $ | 0.38 |   |   | $ | 0.21 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding                                |   |   | 67,792,832 |   |   |   | 67,030,452 |   |   |   | 67,615,069 |   |   |   | 66,804,333 |   |
| Diluted weighted average shares outstanding                              |   |   | 68,798,021 |   |   |   | 67,570,398 |   |   |   | 68,814,997 |   |   |   | 67,030,985 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Refer to notes to unaudited condensed consolidated financial statements. |   |

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Table of Contents

|                                                                                                                                                           |   |    |      |   |       |   |      |     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------|--------|------------|--------|-----------|----------|--------|
| CABELA'S INCORPORATED AND SUBSIDIARIES                                                                                                                         |   |
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                          |   |
| (Dollars in Thousands Except Par Values)                                                                                                                       |   |
| (Unaudited)                                                                                                                                                    |   |
|                                                                                                                                                           |   |
|                                                                                                                                                           |   |    |      |   |       |   |      |     |   |
| ASSETS                                                                                                                                                         |   | July 3, |      |   | January 2, |   |      | June 27, |   |
|                                                                                                                                                           | 2010   |    |      | 2010   |       |   | 2009      |     |
| CURRENT                                                                                                                                                        |   |    |      |   |       |   |      |     |   |
| Cash and cash equivalents                                                                                                                                      |   | $       | 274,440   |   |       | $      | 582,185   |     |   | $ | 480,756 |   |
| Held-to-maturity investment securities                                                                                                                         |   |    | 224,905   |   |       |   | -         |     |   |   | - |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,186, $1,364 and $1,802                                                                       |   |    | 18,615    |   |       |   | 31,925    |     |   |   | 34,364 |   |
| Credit card loans, net of allowance for loan losses of $1,374 and $1,193                                                                                       |   |    | -         |   |       |   | 135,935   |     |   |   | 138,896 |   |
| Credit card loans (includes restricted credit card loans of the Trust of $2,412,135), net of allowance for loan losses of $96,000                              |   |    | 2,329,491 |   |       |   | -         |     |   |   | - |   |
| Inventories                                                                                                                                                    |   |    | 512,739   |   |       |   | 440,134   |     |   |   | 586,613 |   |
| Prepaid expenses and other current assets (includes restricted cash of the Trust of $25,882 at July 3, 2010)                                                   |   |    | 165,088   |   |       |   | 150,913   |     |   |   | 145,468 |   |
| Income taxes receivable and deferred income taxes                                                                                                              |   |    | 8,936     |   |       |   | -         |     |   |   | - |   |
| Total current assets                                                                                                                                           |   |    | 3,534,214 |   |       |   | 1,341,092 |     |   |   | 1,386,097 |   |
| Property and equipment, net                                                                                                                                    |   |    | 812,409   |   |       |   | 811,765   |     |   |   | 864,501 |   |
| Land held for sale or development                                                                                                                              |   |    | 29,917    |   |       |   | 30,772    |     |   |   | 37,550 |   |
| Retained interests in securitized loans, including asset-backed securities                                                                                     |   |    | -         |   |       |   | 176,034   |     |   |   | 121,465 |   |
| Economic development bonds                                                                                                                                     |   |    | 107,397   |   |       |   | 108,491   |     |   |   | 115,650 |   |
| Other assets                                                                                                                                                   |   |    | 20,039    |   |       |   | 23,731    |     |   |   | 25,411 |   |
| Total assets                                                                                                                                                   |   | $       | 4,503,976 |   |       | $      | 2,491,885 |     |   | $ | 2,550,674 |   |
|                                                                                                                                                           |   |    |      |   |       |   |      |     |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                     |   |    |      |   |       |   |      |     |   |   |   |   |
| CURRENT                                                                                                                                                        |   |    |      |   |       |   |      |     |   |   |   |   |
| Accounts payable, including unpresented checks of $16,778, $44,394 and $30,560                                                                                 |   | $       | 196,039   |   |       | $      | 215,229   |     |   | $ | 163,143 |   |
| Gift instruments, and credit card and loyalty rewards programs                                                                                                 |   |    | 176,881   |   |       |   | 183,915   |     |   |   | 164,857 |   |
| Accrued expenses                                                                                                                                               |   |    | 117,448   |   |       |   | 145,797   |     |   |   | 99,270 |   |
| Time deposits                                                                                                                                                  |   |    | 114,031   |   |       |   | 120,384   |     |   |   | 184,711 |   |
| Current maturities of secured long-term obligations of the Trust                                                                                               |   |    | 749,500   |   |       |   | -         |     |   |   | - |   |
| Current maturities of long-term debt                                                                                                                           |   |    | 224       |   |       |   | 3,101     |     |   |   | 222 |   |
| Income taxes payable and deferred income taxes                                                                                                                 |   |    | -         |   |       |   | 53,312    |     |   |   | 13,227 |   |
| Total current liabilities                                                                                                                                      |   |    | 1,354,123 |   |       |   | 721,738   |     |   |   | 625,430 |   |
| Long-term time deposits                                                                                                                                        |   |    | 383,018   |   |       |   | 356,280   |     |   |   | 398,662 |   |
| Secured long-term obligations of the Trust, less current maturities                                                                                            |   |    | 1,378,400 |   |       |   | -         |     |   |   | - |   |
| Long-term debt, less current maturities                                                                                                                        |   |    | 383,271   |   |       |   | 345,178   |     |   |   | 490,130 |   |
| Deferred income taxes                                                                                                                                          |   |    | 11,509    |   |       |   | 20,824    |     |   |   | 40,935 |   |
| Other long-term liabilities                                                                                                                                    |   |    | 65,262    |   |       |   | 63,444    |     |   |   | 60,136 |   |
|                                                                                                                                                           |   |    |      |   |       |   |      |     |   |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                  |   |    |      |   |       |   |      |     |   |   |   |   |
|                                                                                                                                                           |   |    |      |   |       |   |      |     |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                     |   |    |      |   |       |   |      |     |   |   |   |   |
| Preferred stock, $0.01 par value; Authorized – 10,000,000 shares;  Issued – none                                                         |   |    | -         |   |       |   | -         |     |   |   | - |   |
| Common stock, $0.01 par value:                                                                                                                                 |   |    |      |   |       |   |      |     |   |   |   |   |
| Class A Voting, Authorized  –  245,000,000 shares;  Issued –  67,853,898, 67,287,575 and 67,063,457 shares |   |    | 679       |   |       |   | 673       |     |   |   | 671 |   |
| Class B Non-voting,  Authorized  –  245,000,000 shares;  Issued –  none                          |   |    | -         |   |       |   | -         |     |   |   | - |   |
| Additional paid-in capital                                                                                                                                     |   |    | 295,581   |   |       |   | 285,490   |     |   |   | 277,980 |   |
| Retained earnings                                                                                                                                              |   |    | 634,250   |   |       |   | 697,293   |     |   |   | 661,927 |   |
| Accumulated other comprehensive income (loss)                                                                                                                  |   |    | (2,117    | )      |       |   | 965       |     |   |   | (5,197 | ) |
| Total stockholders’ equity                                                                                                                               |   |    | 928,393   |   |       |   | 984,421   |     |   |   | 935,381 |   |
| Total liabilities and stockholders’ equity                                                                                                               |   | $       | 4,503,976 |   |       | $      | 2,491,885 |     |   | $ | 2,550,674 |   |
|                                                                                                                                                           |   |    |      |   |       |   |      |     |   |   |   |   |
| Refer to notes to unaudited condensed consolidated financial statements.                                                                                       |   |

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Table of Contents

| CABELA'S INCORPORATED AND SUBSIDIARIES                                                                         |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                |   |
| (In Thousands)                                                                                                 |   |
| (Unaudited)                                                                                                    |   |
|                                                                                                           |   | Six Months Ended |   |
|                                                                                                           |   | July 3, |   |   | June 27, |   |
|                                                                                                           |   | 2010 |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                          |   |   |   |   |   |   |
| Net income                                                                                                     |   | $ | 26,115 |   |   | $ | 14,251 |   |
| Adjustments to reconcile net income to net cash flows from operating activities:                               |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                  |   |   | 34,712 |   |   |   | 34,856 |   |
| Impairment and restructuring charges                                                                           |   |   | 1,834 |   |   |   | 12,764 |   |
| Stock based compensation                                                                                       |   |   | 5,616 |   |   |   | 4,285 |   |
| Deferred income taxes                                                                                          |   |   | (4,140 | ) |   |   | (325 | ) |
| Provision for loan losses                                                                                      |   |   | 31,756 |   |   |   | 343 |   |
| Other, net                                                                                                     |   |   | 1,784 |   |   |   | 1,927 |   |
| Change in operating assets and liabilities:                                                                    |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                                            |   |   | 13,039 |   |   |   | 11,120 |   |
| Change in credit card loans originated from internal operations, net                                           |   |   | 46,653 |   |   |   | - |   |
| Credit card loans held for sale, net                                                                           |   |   | - |   |   |   | 134,905 |   |
| Securitizations of credit card loans, net                                                                      |   |   | - |   |   |   | (107,688 | ) |
| Retained interests in securitized loans (including asset-backed securities)                                    |   |   | - |   |   |   | 7,262 |   |
| Inventories                                                                                                    |   |   | (72,605 | ) |   |   | (68,956 | ) |
| Prepaid expenses and other current assets                                                                      |   |   | 14,687 |   |   |   | (13,090 | ) |
| Land held for sale or development                                                                              |   |   | 39 |   |   |   | (127 | ) |
| Accounts payable and accrued expenses                                                                          |   |   | (27,592 | ) |   |   | (47,619 | ) |
| Gift instruments, and credit card and loyalty rewards programs                                                 |   |   | (7,033 | ) |   |   | (19,976 | ) |
| Other long-term liabilities                                                                                    |   |   | (6,381 | ) |   |   | (1,504 | ) |
| Income taxes receivable/payable                                                                                |   |   | (32,314 | ) |   |   | (9,181 | ) |
| Net cash provided by (used in) operating activities                                                            |   |   | 26,170 |   |   |   | (46,753 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                          |   |   |   |   |   |   |   |   |
| Property and equipment additions                                                                               |   |   | (31,623 | ) |   |   | (30,107 | ) |
| Purchases of held-to-maturity investment securities                                                            |   |   | (349,905 | ) |   |   | - |   |
| Maturities of held-to-maturity investment securities                                                           |   |   | 125,000 |   |   |   | - |   |
| Proceeds from retirements and maturities of economic development bonds                                         |   |   | 5,428 |   |   |   | 91 |   |
| Purchase of asset-backed available-for-sale securities classified with retained interests in securitized loans |   |   | - |   |   |   | (76,924 | ) |
| Change in restricted cash of the Trust, net                                                                    |   |   | (6,498 | ) |   |   | - |   |
| Change in credit card loans originated externally, net                                                         |   |   | 37,887 |   |   |   | - |   |
| Other investing changes, net                                                                                   |   |   | 844 |   |   |   | 8,418 |   |
| Net cash used in investing activities                                                                          |   |   | (218,867 | ) |   |   | (98,522 | ) |
|                                                                                                           |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                          |   |   |   |   |   |   |   |   |
| Change in unpresented checks net of bank balance                                                               |   |   | (27,766 | ) |   |   | 2,343 |   |
| Change in time deposits, net                                                                                   |   |   | 20,385 |   |   |   | 98,484 |   |
| Borrowings on secured long-term obligations of the Trust                                                       |   |   | 255,000 |   |   |   | - |   |
| Repayments on secured variable funding obligations of the Trust                                                |   |   | (400,000 | ) |   |   | - |   |
| Borrowings on revolving credit facilities and inventory financing                                              |   |   | 121,073 |   |   |   | 438,261 |   |
| Repayments on revolving credit facilities and inventory financing                                              |   |   | (88,735 | ) |   |   | (324,728 | ) |
| Payments on long-term debt                                                                                     |   |   | (139 | ) |   |   | (147 | ) |
| Exercise of employee stock options and employee stock purchase plan issuances, net                             |   |   | 3,791 |   |   |   | 2,025 |   |
| Other financing changes, net                                                                                   |   |   | 1,343 |   |   |   | (311 | ) |
| Net cash (used in) provided by financing activities                                                            |   |   | (115,048 | ) |   |   | 215,927 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents                                                                        |   |   | (307,745 | ) |   |   | 70,652 |   |
| Cash and cash equivalents, at beginning of period                                                              |   |   | 582,185 |   |   |   | 410,104 |   |
| Cash and cash equivalents, at end of period                                                                    |   | $ | 274,440 |   |   | $ | 480,756 |   |
|                                                                                                           |   |
| Refer to notes to unaudited condensed consolidated financial statements.                                       |   |

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Table of Contents

|                                                                                |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |
|-------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|------------|--------|--------|----------|--------|--------|---------------|---------|--------|--------|--------|
| CABELA'S INCORPORATED AND SUBSIDIARIES                                              |   |
| CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY                     |   |
| (Dollars in Thousands)                                                              |   |
| (Unaudited)                                                                         |   |
|                                                                                |   |   |       |   |   |   |   |       |   |   |     |   |   | Accumulated   |    |   |   |   |
|                                                                                |   | Common |       |   |   |   |   | Additional |   |   |     |   |   | Other         |    |   |   |   |
|                                                                                |   | Stock  |       |   | Common |   |   | Paid-In    |   |   | Retained |   |   | Comprehensive |    |   |   |   |
|                                                                                |   | Shares |       |   | Stock  |   |   | Capital    |   |   | Earnings |   |   | Income (Loss) |    |   | Total  |   |
| BALANCE, at December 28, 2008                                                       |   |   | 66,833,984 |   |   | $      | 668    |       |   | $      | 271,958  |   |   | $             | 647,676 |   |   | $      | (6,597 | ) |   | $ | 913,705 |   |
| Comprehensive income:                                                               |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Net income                                                                          |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | 14,251  |   |   |   | - |   |   |   | 14,251 |   |
| Unrealized loss on economic development bonds, net of taxes of $2,128               |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | 2,611 |   |   |   | 2,611 |   |
| Unrealized gain on asset-backed availible-for-sale securities, net of taxes of $640 |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | (1,180 | ) |   |   | (1,180 | ) |
| Derivative adjustment, net of taxes of $45                                          |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | 77 |   |   |   | 77 |   |
| Foreign currency translation adjustment                                             |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | (108 | ) |   |   | (108 | ) |
| Total comprehensive income                                                          |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |   |   |   |   | 15,651 |   |
| Stock-based compensation                                                            |   |   | -          |   |   |   | -      |       |   |   | 4,091    |   |   |          | -       |   |   |   | - |   |   |   | 4,091 |   |
| Employee stock purchase plan issuances                                              |   |   | 144,675    |   |   |   | 2      |       |   |   | 1,210    |   |   |          | -       |   |   |   | - |   |   |   | 1,212 |   |
| Exercise of employee stock options                                                  |   |   | 84,798     |   |   |   | 1      |       |   |   | 691      |   |   |          | -       |   |   |   | - |   |   |   | 692 |   |
| Tax benefit on employee stock option exercises                                      |   |   | -          |   |   |   | -      |       |   |   | 30       |   |   |          | -       |   |   |   | - |   |   |   | 30 |   |
| BALANCE, at June 27, 2009                                                           |   |   | 67,063,457 |   |   | $      | 671    |       |   | $      | 277,980  |   |   | $             | 661,927 |   |   | $      | (5,197 | ) |   | $ | 935,381 |   |
|                                                                                |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |   |   |   |   |   |   |
| BALANCE, at January 2, 2010                                                         |   |   | 67,287,575 |   |   | $      | 673    |       |   | $      | 285,490  |   |   | $             | 697,293 |   |   | $      | 965 |   |   | $ | 984,421 |   |
| Effect of adopting ASC Topics 810 and 860, net of tax                               |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | (89,158 | )      |   |   | (3,650 | ) |   |   | (92,808 | ) |
| Comprehensive income:                                                               |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Net income                                                                          |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | 26,115  |   |   |   | - |   |   |   | 26,115 |   |
| Unrealized gain on economic development bonds, net of taxes of $106                 |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | 189 |   |   |   | 189 |   |
| Derivative adjustment, net of taxes of $39                                          |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | 71 |   |   |   | 71 |   |
| Foreign currency translation adjustment                                             |   |   | -          |   |   |   | -      |       |   |   | -        |   |   |          | -       |   |   |   | 308 |   |   |   | 308 |   |
| Total comprehensive income                                                          |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |   |   |   |   | 26,683 |   |
| Stock-based compensation                                                            |   |   | -          |   |   |   | -      |       |   |   | 5,438    |   |   |          | -       |   |   |   | - |   |   |   | 5,438 |   |
| Employee stock purchase plan issuances                                              |   |   | 69,920     |   |   |   | 1      |       |   |   | 1,206    |   |   |          | -       |   |   |   | - |   |   |   | 1,207 |   |
| Exercise of employee stock options                                                  |   |   | 496,403    |   |   |   | 5      |       |   |   | 2,579    |   |   |          | -       |   |   |   | - |   |   |   | 2,584 |   |
| Tax benefit on employee stock option exercises                                      |   |   | -          |   |   |   | -      |       |   |   | 868      |   |   |          | -       |   |   |   | - |   |   |   | 868 |   |
| BALANCE, at July 3, 2010                                                            |   |   | 67,853,898 |   |   | $      | 679    |       |   | $      | 295,581  |   |   | $             | 634,250 |   |   | $      | (2,117 | ) |   | $ | 928,393 |   |
|                                                                                |   |   |       |   |   |   |   |       |   |   |     |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Refer to notes to unaudited condensed consolidated financial statements.            |   |

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CABELA’S INCORPORATED AND SUBSIDIARIES

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| 2. | CHANGE IN ACCOUNTING PRINCIPLES - CONSOLIDATION OF CABELA’S MASTER CREDIT CARD TRUST |
|----|--------------------------------------------------------------------------------------------|

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|                                                                |   |       |      |   | Effect of   |   |      | January 3, |   |
|---------------------------------------------------------------------|--------|------------|-----------|--------|-------------|--------|-----------|------------|--------|
|                                                                |   |       |      |   | Adopting    |   |      | 2010       |   |
|                                                                |   | January 3, |      |   | ASC Topics  |   |      | After      |   |
|                                                                |   | 2010       |      |   | 810 and 860 |   |      | Adoption   |   |
| ASSETS                                                              |   |       |      |   |        |   |      |       |   |
| Cash and cash equivalents                                           |   | $          | 582,185   |   |        | $      | -         |       |   | $ | 582,185 |   |
| Accounts receivable and inventories, net                            |   |       | 472,059   |   |        |   | -         |       |   |   | 472,059 |   |
| Restricted credit card loans                                        |   |       | -         |   |        |   | 2,545,080 |       |   |   | 2,545,080 |   |
| Unrestricted credit card loans                                      |   |       | 137,309   |   |        |   | (120,655  | )          |   |   | 16,654 |   |
| Allowance for loan losses on credit cards                           |   |       | (1,374    | )      |        |   | (114,573  | )          |   |   | (115,947 | ) |
| Credit card loans, net                                              |   |       | 135,935   |   |        |   | 2,309,852 |       |   |   | 2,445,787 |   |
| Prepaid expenses and other current assets                           |   |       | 150,913   |   |        |   | 20,722    |       |   |   | 171,635 |   |
| Total current assets                                                |   |       | 1,341,092 |   |        |   | 2,330,574 |       |   |   | 3,671,666 |   |
| Property, equipment, and land held for sale, net                    |   |       | 842,537   |   |        |   | -         |       |   |   | 842,537 |   |
| Retained interests in securitized loans                             |   |       | 176,034   |   |        |   | (176,034  | )          |   |   | - |   |
| Economic development bonds and other assets                         |   |       | 132,222   |   |        |   | -         |       |   |   | 132,222 |   |
| Total assets                                                        |   | $          | 2,491,885 |   |        | $      | 2,154,540 |       |   | $ | 4,646,425 |   |
|                                                                |   |       |      |   |        |   |      |       |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                          |   |       |      |   |        |   |      |       |   |   |   |   |
| Accruals and other current liabilities                              |   | $          | 665,325   |   |        | $      | 9,703     |       |   | $ | 675,028 |   |
| Secured variable funding obligations of the Trust                   |   |       | -         |   |        |   | 400,000   |       |   |   | 400,000 |   |
| Current maturities of secured long-term obligations of the Trust    |   |       | -         |   |        |   | 749,500   |       |   |   | 749,500 |   |
| Current maturities of long-term debt                                |   |       | 3,101     |   |        |   | -         |       |   |   | 3,101 |   |
| Income taxes payable and deferred income taxes                      |   |       | 53,312    |   |        |   | (26,358   | )          |   |   | 26,954 |   |
| Total current liabilities                                           |   |       | 721,738   |   |        |   | 1,132,845 |       |   |   | 1,854,583 |   |
| Secured long-term obligations of the Trust, less current maturities |   |       | -         |   |        |   | 1,123,400 |       |   |   | 1,123,400 |   |
| Long-term debt, less current maturities                             |   |       | 345,178   |   |        |   | -         |       |   |   | 345,178 |   |
| Other long-term liabilities and deferred income taxes               |   |       | 440,548   |   |        |   | (8,897    | )          |   |   | 431,651 |   |
| Total liabilities                                                   |   |       | 1,507,464 |   |        |   | 2,247,348 |       |   |   | 3,754,812 |   |
| Common stock and additional paid-in capital                         |   |       | 286,163   |   |        |   | -         |       |   |   | 286,163 |   |
| Retained earnings                                                   |   |       | 697,293   |   |        |   | (89,158   | )          |   |   | 608,135 |   |
| Accumulated other comprehensive income (loss)                       |   |       | 965       |   |        |   | (3,650    | )          |   |   | (2,685 | ) |
| Total stockholders’ equity                                    |   |       | 984,421   |   |        |   | (92,808   | )          |   |   | 891,613 |   |
| Total liabilities and stockholders’ equity                    |   | $          | 2,491,885 |   |        | $      | 2,154,540 |       |   | $ | 4,646,425 |   |

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| Consolidated assets:                  |   |   |      |
|---------------------------------------|--------|--------|-----------|
| Restricted credit card loans          |   | $      | 2,412,135 |   |
| Restricted cash                       |   |   | 25,882    |   |
| Total                                 |   | $      | 2,438,017 |   |
|                                  |   |   |      |   |
| Consolidated liabilities:             |   |   |      |   |
| Secured long-term obligations         |   | $      | 2,127,900 |   |
| Interest rate swap                    |   |   | 3,150     |   |
| Interest due to third party investors |   |   | 3,327     |   |
| Total                                 |   | $      | 2,134,377 |   |

| 3. | CREDIT CARD LOANS |
|----|-------------------|

| Credit card loans:                                                                                     |   |   |      |
|--------------------------------------------------------------------------------------------------------|--------|--------|-----------|
| Restricted credit card loans of the Trust (1)                                                          |   | $      | 2,412,135 |   |
| Unrestricted credit card loans                                                                         |   |   | 13,356    |   |
| Total credit card loans                                                                                |   |   | 2,425,491 |   |
| Allowance for loan losses                                                                              |   |   | (96,000   | ) |
| Credit card loans, net                                                                                 |   | $      | 2,329,491 |   |
|                                                                                                   |   |   |      |   |
| (1) Restricted credit card loans are restricted for repayment of secured borrowings of the Trust. |   |

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|                                                        |   | Three Months Ended |    |   | Six Months Ended |   |
|-------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                        |   | July 3,            |    |   | July 3,          |   |
|                                                        |   | 2010               |    |   | 2010             |   |
| Balance, beginning of period                                |   | $                  | 104,850 |   |             | $      | 1,374 |   |
| Change in allowance upon adoption of ASC Topics 810 and 860 |   |               | -       |   |             |   | 114,573 |   |
|                                                        |   |               | 104,850 |   |             |   | 115,947 |   |
|                                                        |   |               |    |   |             |   |   |   |
| Provision for loan losses                                   |   |               | 16,609  |   |             |   | 31,756 |   |
|                                                        |   |               |    |   |             |   |   |   |
| Charge-offs                                                 |   |               | (29,422 | )      |             |   | (59,404 | ) |
| Recoveries                                                  |   |               | 3,963   |   |             |   | 7,701 |   |
| Net charge-offs                                             |   |               | (25,459 | )      |             |   | (51,703 | ) |
| Balance, end of period                                      |   | $                  | 96,000  |   |             | $      | 96,000 |   |

| Credit card loans on non-accrual                                                                                                                       |   | $      | 5,491  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Credit card loans 90 days or more and still accruing                                                                                                   |   |   | 7,091  |   |
|                                                                                                                                                   |   |   |   |   |
| Restructured credit card loans excluded from amounts above (specific allowance for loan losses of $42,500 included in total allowance for loan losses) |   |   | 88,164 |   |

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| 4. | CREDIT CARD LOANS AND SECURITIZATION PRIOR TO CONSOLIDATION OF THE TRUST |
|----|--------------------------------------------------------------------------|

|                                                                               |   | January 2, |    |   | June 27, |   |
|------------------------------------------------------------------------------------|--------|------------|---------|--------|----------|--------|
|                                                                               |   | 2010       |    |   | 2009     |   |
| Asset-backed trading securities                                                    |   | $          | 68,752  |   |     | $      | 20,125 |   |
|                                                                               |   |       |    |   |     |   |   |   |
| Asset-backed available-for-sale securities (amortized cost of $76,984 and $76,943) |   |       | 82,705  |   |     |   | 75,123 |   |
| Interest-only strip, cash reserve accounts, and cash accounts                 |   |       | 24,577  |   |     |   | 26,217 |   |
| Transferor's interest                                                              |   |       | 126,328 |   |     |   | 131,278 |   |
|                                                                               |   |       |    |   |     |   |   |   |
| Other assets - accrued interest receivable and amounts due from the Trust     |   |       | 38,278  |   |     |   | 34,589 |   |
|      Total                                                     |   | $          | 340,640 |   |     | $      | 287,332 |   |

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|                                                                                                                                             |   | January 2, |       |   | June 27, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|------------|--------|----------|--------|
|                                                                                                                                             |   | 2010       |       |   | 2009     |   |
| Credit card loans held for sale (including gross transferor’s interest of  $126,328 and $131,278)                                |   | $          | 127,450    |   |     | $      | 130,084 |   |
| Credit card loans receivable, net of allowances of $1,374 and $1,193                                                                             |   |       | 8,485      |   |     |   | 8,812 |   |
| Total                                                                                                                                            |   | $          | 135,935    |   |     | $      | 138,896 |   |
|                                                                                                                                             |   |       |       |   |     |   |   |   |
| Composition of credit card loans at period end:                                                                                                  |   |       |       |   |     |   |   |   |
| Loans serviced                                                                                                                                   |   | $          | 2,561,734  |   |     | $      | 2,276,326 |   |
| Loans securitized and sold to outside investors                                                                                                  |   |       | (2,272,900 | )      |     |   | (2,032,900 | ) |
| Securitized loans with securities owned by WFB at par which are classified as asset-backed securities in retained interests on securitized loans |   |       | (145,852   | )      |     |   | (97,225 | ) |
|                                                                                                                                             |   |       | 142,982    |   |     |   | 146,201 |   |
| Less adjustments to valuations and allowances                                                                                                    |   |       | (7,047     | )      |     |   | (7,305 | ) |
| Total (including gross transferor’s interest of $126,328 and $131,278)                                                                     |   | $          | 135,935    |   |     | $      | 138,896 |   |
|                                                                                                                                             |   |       |       |   |     |   |   |   |
| Delinquent loans including finance charges and fees at period end:                                                                               |   |       |       |   |     |   |   |   |
| Managed credit card loans:                                                                                                                       |   |       |       |   |     |   |   |   |
| 30-89 days                                                                                                                                       |   | $          | 31,719     |   |     | $      | 28,736 |   |
| 90 days or more and still accruing                                                                                                               |   |       | 14,536     |   |     |   | 12,823 |   |
| Securitized credit card loans including transferor's interest:                                                                                   |   |       |       |   |     |   |   |   |
| 30-89 days                                                                                                                                       |   |       | 31,336     |   |     |   | 28,330 |   |
| 90 days or more and still accruing                                                                                                               |   |       | 14,376     |   |     |   | 12,603 |   |

|                                                                            |   | Three Months Ended |      |   | Six Months Ended |   |
|---------------------------------------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                                                            |   | June 27, 2009      |      |   | June 27, 2009    |   |
| Total net charge-offs including finance charges and fees for the periods ended: |   |               |      |   |             |   |
| Managed credit card loans                                                       |   | $                  | 29,417    |   |             | $      | 55,832 |   |
| Securitized credit card loans including transferor's interest                   |   |               | 28,941    |   |             |   | 54,582 |   |
|                                                                            |   |               |      |   |             |   |   |   |
| Annual average credit card loans including finance charges and fees:            |   |               |      |   |             |   |   |   |
| Managed credit card loans                                                       |   |               | 2,244,608 |   |             |   | 2,241,491 |   |
| Securitized credit card loans including transferor’s interest             |   |               | 2,218,921 |   |             |   | 2,211,127 |   |
|                                                                            |   |               |      |   |             |   |   |   |
| Total net charge-offs as a percentage of annual average loans:                  |   |               |      |   |             |   |   |   |
| Managed credit card loans                                                       |   |               | 5.24      | %      |             |   | 4.98 | % |
| Securitized credit card loans including transferor's interest                   |   |               | 5.22      | %      |             |   | 4.94 | % |

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| 5. | SECURITIES |
|----|------------|

|                                                                                                                                                                                                                                                                   |   |      |    |   | Gross      |   |   | Gross      |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                   |   | Amortized |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                                                                                                                                                                                                                                                   |   | Cost      |    |   | Gains      |   |   | Losses     |   |   | Value  |   |
| July 3, 2010                                                                                                                                                                                                                                                           |   |      |    |   |       |   |   |       |   |   |   |   |
| Available-for-sale securities:                                                                                                                                                                                                                                         |   |      |    |   |       |   |   |       |   |   |   |   |
| Economic development bonds                                                                                                                                                                                                                                             |   | $         | 110,426 |   |       | $      | 2,106  |       |   | $      | (5,135 | )      |   | $ | 107,397 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Held-to-maturity securities:                                                                                                                                                                                                                                           |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| U.S. government agency (1)                                                                                                                                                                                                                                             |   |      | 224,905 |   |       |   | 60     |       |   |   | -      |   |   |   | 224,965 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                   |   | $         | 335,331 |   |       | $      | 2,166  |       |   | $      | (5,135 | )      |   | $ | 332,362 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| January 2, 2010                                                                                                                                                                                                                                                        |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Available-for-sale securities:                                                                                                                                                                                                                                         |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Economic development bonds                                                                                                                                                                                                                                             |   | $         | 111,815 |   |       | $      | 999    |       |   | $      | (4,323 | )      |   | $ | 108,491 |   |
| Asset-backed securities (2)                                                                                                                                                                                                                                            |   |      | 76,984  |   |       |   | 5,721  |       |   |   | -      |   |   |   | 82,705 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                   |   | $         | 188,799 |   |       | $      | 6,720  |       |   | $      | (4,323 | )      |   | $ | 191,196 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| June 27, 2009                                                                                                                                                                                                                                                          |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Available-for-sale securities:                                                                                                                                                                                                                                         |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Economic development bonds                                                                                                                                                                                                                                             |   | $         | 121,396 |   |       | $      | 37     |       |   | $      | (5,783 | )      |   | $ | 115,650 |   |
| Asset-backed securities (2)                                                                                                                                                                                                                                            |   |      | 76,943  |   |       |   | 825    |       |   |   | (2,645 | )      |   |   | 75,123 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                   |   | $         | 198,339 |   |       | $      | 862    |       |   | $      | (8,428 | )      |   | $ | 190,773 |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| (1)    The U.S. government agency held-to-maturity securities are held by WFB and are available for utilization only by WFB pursuant to regulatory restrictions.                                                                                        |   |
|                                                                                                                                                                                                                                                                   |   |      |    |   |       |   |   |       |   |
| (2)   The asset-backed available-for-sale securities were derecognized with the consolidation of the Trust upon adoption of ASC Topics 810 and 860 as of January 3, 2010. See Note 2 for additional information on the consolidation of the Trust. |   |

|                                      |   |   | Available-for-Sale |   |    | Held-to-Maturity |   |
|-------------------------------------------|--------|--------|--------------------|--------|---------|------------------|--------|
|                                      |   |   | Amortized          |   |    | Fair             |   |   | Amortized |   |   | Fair |   |
|                                      |   |   | Cost               |   |    | Value            |   |   | Cost |   |   | Value |   |
| For the six months ending January 1, 2011 |   |   | $                  | 1,314  |    |             | $      | 1,381 |   |   | $ | 224,905 |   |   | $ | 224,965 |   |
| For the fiscal years ending:              |   |   |               |   |    |             |   |   |   |   |   |   |   |   |   |   |   |
| 2011                                      |   |   |               | 1,732  |    |             |   | 1,794 |   |   |   | - |   |   |   | - |   |
| 2012                                      |   |   |               | 1,959  |    |             |   | 2,032 |   |   |   | - |   |   |   | - |   |
| 2013                                      |   |   |               | 3,639  |    |             |   | 3,661 |   |   |   | - |   |   |   | - |   |
| 2014                                      |   |   |               | 4,036  |    |             |   | 4,067 |   |   |   | - |   |   |   | - |   |
| 2015-2019                                 |   |   |               | 24,439 |    |             |   | 24,257 |   |   |   |   |   |   |   |   |   |
| 2020 and thereafter                       |   |   |               | 73,307 |    |             |   | 70,205 |   |   |   | - |   |   |   | - |   |
|                                      |   |   |               |   |    |             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |   |               | $      | 110,426 |             |   | $ | 107,397 |   |   | $ | 224,905 |   |   | $ | 224,965 |   |

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|                                                                                                                                                                       | Expected       |   |     |    |   |   |   |   |     |   |      |    |   |   |   |   |   |   |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|----------|---------|--------|--------|--------|--------|----------|--------|-----------|---------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                                                                       | Maturity Date  |   | Fixed    |    |   | Rate   |   |   | Variable |   |      | Rate    |   |   | Total  |   |   | Rate   |      |
| Series 2005-I                                                                                                                                                              | October 2010   |   | $        | 140,000 |   |   |   | 4.97   | %        |   | $         | 109,500 |   |   |   | 0.52   | %      |   | $         | 249,500 |   |   |   | 3.00 | % |
| Series 2006-III                                                                                                                                                            | October 2011   |   |     | 250,000 |   |   |   | 5.26   |     |   |      | 250,000 |   |   |   | 0.44   |   |   |      | 500,000 |   |   |   | 2.83 |   |
| Series 2008-I (1)                                                                                                                                                          | December 2010  |   |     | 461,500 |   |   |   | 4.37   |     |   |      | 38,500  |   |   |   | 3.81   |   |   |      | 500,000 |   |   |   | 4.31 |   |
| Series 2008-IV                                                                                                                                                             | September 2011 |   |     | 122,500 |   |   |   | 7.29   |     |   |      | 75,900  |   |   |   | 4.50   |   |   |      | 198,400 |   |   |   | 6.20 |   |
| Series 2009-I                                                                                                                                                              | March 2012     |   |     | -       |   |   |   |   |     |   |      | 425,000 |   |   |   | 2.26   |   |   |      | 425,000 |   |   |   | 2.26 |   |
| Series 2010-I                                                                                                                                                              | January 2015   |   |     | -       |   |   |   |   |     |   |      | 255,000 |   |   |   | 1.73   |   |   |      | 255,000 |   |   |   | 1.73 |   |
|                                                                                                                                                                       |           |   |     |    |   |   |   |   |     |   |      |    |   |   |   |   |   |   |      |   |   |   |   |   |   |
| Total secured long-term obligations of the Trust                                                                                                                           |           |   | 974,000  |    |   |   |   |   |     |   | 1,153,900 |    |   |   |   |   |   |   | 2,127,900 |   |   |   |   |   |
| Less: current maturities                                                                                                                                                   |           |   | (601,500 | )       |   |   |   |   |     |   | (148,000  | )       |   |   |   |   |   |   | (749,500  | ) |   |   |   |   |
|                                                                                                                                                                       |           |   |     |    |   |   |   |   |     |   |      |    |   |   |   |   |   |   |      |   |   |   |   |   |
| Secured long-term obligations of the Trust, less current maturities                                                                                                        |           | $      | 372,500  |    |   |   |   |   |     | $      | 1,005,900 |    |   |   |   |   |   | $      | 1,378,400 |   |   |   |   |   |
|                                                                                                                                                                       |           |   |     |    |   |   |   |   |     |   |      |    |   |   |   |   |   |   |      |   |   |   |   |   |   |
| (1)  Class A-2 notes for $229,850 are indexed to the one-month London Interbank Offered Rate ("LIBOR"), but an interest rate swap converts Cabela's payment to fixed. |           |

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| 7. | LONG-TERM DEBT AND CAPITAL LEASES |
|----|-----------------------------------|

|                                                                                                              |   | July 3, |    |   | January 2, |   |    | June 27, |   |
|-------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|------------|--------|---------|----------|--------|
|                                                                                                              |   | 2010    |    |   | 2010       |   |    | 2009     |   |
| Unsecured revolving credit facility of $350,000 expiring June 30, 2012, with interest at 1.50% at July 3, 2010    |   | $       | 30,000  |   |       | $      | -       |     |   | $ | 133,311 |   |
| Unsecured notes payable due 2016 with interest at 5.99%                                                           |   |    | 215,000 |   |       |   | 215,000 |     |   |   | 215,000 |   |
| Unsecured senior notes payable due 2017 with interest at 6.08%                                                    |   |    | 60,000  |   |       |   | 60,000  |     |   |   | 60,000 |   |
| Unsecured senior notes due 2012-2018 with interest at 7.20%                                                       |   |    | 57,000  |   |       |   | 57,000  |     |   |   | 57,000 |   |
| Unsecured revolving credit facility of $15,000 CAD expiring June 30, 2013, with interest at 2.50% at July 3, 2010 |   |    | 8,232   |   |       |   | 2,902   |     |   |   | 11,524 |   |
| Capital lease obligations payable through 2036                                                                    |   |    | 13,263  |   |       |   | 13,377  |     |   |   | 13,517 |   |
| Total debt                                                                                                        |   |    | 383,495 |   |       |   | 348,279 |     |   |   | 490,352 |   |
| Less current portion of debt                                                                                      |   |    | (224    | )      |       |   | (3,101  | )        |   |   | (222 | ) |
|                                                                                                              |   |    |    |   |       |   |    |     |   |   |   |   |
| Long-term debt, less current maturities                                                                           |   | $       | 383,271 |   |       | $      | 345,178 |     |   | $ | 490,130 |   |

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| 8. | IMPAIRMENT AND RESTRUCTURING CHARGES |
|----|--------------------------------------|

|                           |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                           |   | July 3,            |   |   | June 27,         |   |   | July 3, |   |   | June 27, |   |
|                           |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Impariment losses on:          |   |               |   |   |             |   |   |   |   |   |   |   |
| Land held for sale             |   | $                  | 1,834  |   |             | $      | 10,160 |   |   | $ | 1,834 |   |   | $ | 10,160 |   |
| Property and equipment         |   |               | -      |   |             |   | 1,532 |   |   |   | - |   |   |   | 2,604 |   |
| Restructuring charges:         |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Severance and related benefits |   |               | -      |   |             |   | - |   |   |   | - |   |   |   | 606 |   |
|                           |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $                  | 1,834  |   |             | $      | 11,692 |   |   | $ | 1,834 |   |   | $ | 13,370 |   |

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| 9. | INCOME TAXES |
|----|--------------|

|                                           |   | Three Months Ended |   |   | Six Months Ended |   |
|------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                           |   | July 3,            |   |   | June 27,         |   |   | July 3, |   |   | June 27, |   |
|                                           |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Statutory federal rate                         |   |               | 35.0   | %      |             |   | 35.0 | % |   |   | 35.0 | % |   |   | 35.0 | % |
| State income taxes, net of federal tax benefit |   |               | 2.2    |   |             |   | 1.8 |   |   |   | 2.2 |   |   |   | 1.8 |   |
| Rate differential on foreign income            |   |               | (5.9   | )      |             |   | - |   |   |   | (5.9 | ) |   |   | - |   |
| Other nondeductible items                      |   |               | 0.1    |   |             |   | 0.2 |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Change in unrecognized tax benefits            |   |               | 1.2    |   |             |   | 1.0 |   |   |   | 1.4 |   |   |   | 1.7 |   |
| Other, net                                     |   |               | 0.1    |   |             |   | (0.7 | ) |   |   | 0.2 |   |   |   | (0.4 | ) |
|                                           |   |               | 32.7   | %      |             |   | 37.3 | % |   |   | 33.1 | % |   |   | 38.3 | % |

| 10. | COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------|

| For the six months ending January 1, 2011 |   | $      | 4,370   |   |
|-------------------------------------------|--------|--------|---------|--------|
| For the fiscal years ending:              |   |   |    |   |
| 2011                                      |   |   | 8,477   |   |
| 2012                                      |   |   | 7,919   |   |
| 2013                                      |   |   | 7,821   |   |
| 2014                                      |   |   | 7,759   |   |
| Thereafter                                |   |   | 135,535 |   |
|                                      |   |   |    |   |
|                                      |   | $      | 171,881 |   |

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| 12. | STOCKHOLDERS’ EQUITY AND DIVIDEND RESTRICTIONS |
|-----|------------------------------------------------------|

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|                                                                                |   | Three Months Ended |       |   | Six Months Ended |   |
|-------------------------------------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                                                                |   | July 3,            |       |   | June 27,         |   |   | July 3, |   |   | June 27, |   |
|                                                                                |   | 2010               |       |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Weighted average number of shares:                                                  |   |               |       |   |             |   |   |   |   |   |   |   |
| Common shares – basic                                                         |   |               | 67,792,832 |   |             |   | 67,030,452 |   |   |   | 67,615,069 |   |   |   | 66,804,333 |   |
| Effect of incremental dilutive securities:                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |
| Stock options, nonvested stock units, andemployee stock purchase plan shares        |   |               | 1,005,189  |   |             |   | 539,946 |   |   |   | 1,199,928 |   |   |   | 226,652 |   |
| Common shares – diluted                                                       |   |               | 68,798,021 |   |             |   | 67,570,398 |   |   |   | 68,814,997 |   |   |   | 67,030,985 |   |
|                                                                                |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Stock options outstanding and nonvested stock units issued considered anti-dilutive |   |               | 2,696,756  |   |             |   | 4,289,746 |   |   |   | 2,696,756 |   |   |   | 4,517,473 |   |

|                                                                                                                                            |   | Six Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                            |   | July 3,          |   |   | June 27, |   |
|                                                                                                                                            |   | 2010             |   |   | 2009 |   |
| Non-cash financing and investing activities:                                                                                                    |   |             |   |   |
| Accrued property and equipment additions (1)                                                                                                    |   | $                | 10,080 |   |   | $ | 8,476 |   |
| Contribution of land received                                                                                                                   |   |             | 7,047  |   |   |   | - |   |
|                                                                                                                                            |   |             |   |   |   |   |   |   |
| Other cash flow information:                                                                                                                    |   |             |   |   |   |   |   |   |
| Interest paid, net of capitalized interest                                                                                                      |   | $                | 86,644 |   |   | $ | 24,023 |   |
| Income taxes, net                                                                                                                               |   |             | 30,031 |   |   |   | 16,366 |   |
|  _______________                                                                                                                           |   |             |   |   |   |   |   |   |
|                                                                                                                                            |   |             |   |   |   |   |   |   |
| (1) Accrued property and equipment additions are recognized in the condensed consolidated statements of cash flows in the period they are paid. |

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|                                   |   |   |    |   |   |   |    |      |   |   | Corporate |   |   |   |    |
|----------------------------------------|--------|--------|---------|--------|--------|--------|---------|-----------|--------|--------|-----------|--------|--------|--------|---------|
|                                   |   |   |    |   |   |   |    | Financial |   |   | Overhead  |   |   |   |    |
| Three Months Ended July 3, 2010:       |   | Retail |    |   | Direct |   |    | Services  |   |   | and Other |   |   | Total  |    |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |
| Revenue from external customers        |   | $      | 293,950 |   |   | $      | 170,958 |      |   | $      | 56,604    |   |   | $      | 4,458   |   |   | $ | 525,970 |   |
| Revenue (loss) from internal customers |   |   | -       |   |   |   | 583     |      |   |   | (116      | )      |   |   | (467    | ) |   |   | - |   |
| Total revenue                          |   | $      | 293,950 |   |   | $      | 171,541 |      |   | $      | 56,488    |   |   | $      | 3,991   |   |   | $ | 525,970 |   |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |   |   |   |   |   |
| Operating income (loss)                |   | $      | 41,105  |   |   | $      | 30,572  |      |   | $      | 13,112    |   |   | $      | (54,120 | ) |   | $ | 30,669 |   |
| As a percentage of revenue             |   |   | 14.0    | %      |   |   | 17.8    | %         |   |   | 23.2      | %      |   |   | N/A     |   |   |   | 5.8 | % |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |   |   |   |   |   |
| Depreciation and amortization          |   | $      | 9,511   |   |   | $      | 1,087   |      |   | $      | 294       |   |   | $      | 6,033   |   |   | $ | 16,925 |   |
| Assets                                 |   |   | 866,836 |   |   |   | 97,777  |      |   |   | 2,949,744 |   |   |   | 589,619 |   |   |   | 4,503,976 |   |

|                                   |   |   |    |   |   |   |    |      |   |   | Corporate |   |   |   |    |
|----------------------------------------|--------|--------|---------|--------|--------|--------|---------|-----------|--------|--------|-----------|--------|--------|--------|---------|
|                                   |   |   |    |   |   |   |    | Financial |   |   | Overhead  |   |   |   |    |
| Three Months Ended June 27, 2009:      |   | Retail |    |   | Direct |   |    | Services  |   |   | and Other |   |   | Total  |    |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |
| Revenue from external customers        |   | $      | 302,035 |   |   | $      | 198,924 |      |   | $      | 44,245    |   |   | $      | 4,032   |   |   | $ | 549,236 |   |
| Revenue (loss) from internal customers |   |   | (402    | )      |   |   | 588     |      |   |   | (116      | )      |   |   | (70     | ) |   |   | - |   |
| Total revenue                          |   | $      | 301,633 |   |   | $      | 199,512 |      |   | $      | 44,129    |   |   | $      | 3,962   |   |   | $ | 549,236 |   |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |   |   |   |   |   |
| Operating income (loss)                |   | $      | 33,965  |   |   | $      | 32,587  |      |   | $      | 12,020    |   |   | $      | (59,624 | ) |   | $ | 18,948 |   |
| As a percentage of revenue             |   |   | 11.3    | %      |   |   | 16.3    | %         |   |   | 27.2      | %      |   |   | N/A     |   |   |   | 3.4 | % |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |   |   |   |   |   |
| Depreciation and amortization          |   | $      | 10,355  |   |   | $      | 1,243   |      |   | $      | 306       |   |   | $      | 5,580   |   |   | $ | 17,484 |   |
| Assets                                 |   |   | 914,256 |   |   |   | 107,231 |      |   |   | 835,348   |   |   |   | 693,839 |   |   |   | 2,550,674 |   |

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|                                   |   |   |    |   |   |   |    |      |   |   | Corporate |   |   |   |    |
|----------------------------------------|--------|--------|---------|--------|--------|--------|---------|-----------|--------|--------|-----------|--------|--------|--------|---------|
|                                   |   |   |    |   |   |   |    | Financial |   |   | Overhead  |   |   |   |    |
| Six Months Ended July 3, 2010:         |   | Retail |    |   | Direct |   |    | Services  |   |   | and Other |   |   | Total  |    |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |
| Revenue from external customers        |   | $      | 565,242 |   |   | $      | 392,936 |      |   | $      | 116,703   |   |   | $      | 10,699  |   |   | $ | 1,085,580 |   |
| Revenue (loss) from internal customers |   |   | -       |   |   |   | 1,349   |      |   |   | (231      | )      |   |   | (1,118  | ) |   |   | - |   |
| Total revenue                          |   | $      | 565,242 |   |   | $      | 394,285 |      |   | $      | 116,472   |   |   | $      | 9,581   |   |   | $ | 1,085,580 |   |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |   |   |   |   |   |
| Operating income (loss)                |   | $      | 59,047  |   |   | $      | 60,842  |      |   | $      | 26,059    |   |   | $      | (99,340 | ) |   | $ | 46,608 |   |
| As a percentage of revenue             |   |   | 10.4    | %      |   |   | 15.4    | %         |   |   | 22.4      | %      |   |   | N/A     |   |   |   | 4.3 | % |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |    |   |   |   |   |   |
| Depreciation and amortization          |   | $      | 20,037  |   |   | $      | 2,347   |      |   | $      | 578       |   |   | $      | 11,750  |   |   | $ | 34,712 |   |
| Assets                                 |   |   | 866,836 |   |   |   | 97,777  |      |   |   | 2,949,744 |   |   |   | 589,619 |   |   |   | 4,503,976 |   |

|                                   |   |   |    |   |   |   |    |      |   |   | Corporate |   |   |   |     |
|----------------------------------------|--------|--------|---------|--------|--------|--------|---------|-----------|--------|--------|-----------|--------|--------|--------|----------|
|                                   |   |   |    |   |   |   |    | Financial |   |   | Overhead  |   |   |   |     |
| Six Months Ended June 27, 2009:        |   | Retail |    |   | Direct |   |    | Services  |   |   | and Other |   |   | Total  |     |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |     |
| Revenue from external customers        |   | $      | 577,159 |   |   | $      | 424,276 |      |   | $      | 78,254    |   |   | $      | 9,087    |   |   | $ | 1,088,776 |   |
| Revenue (loss) from internal customers |   |   | -       |   |   |   | 588     |      |   |   | (231      | )      |   |   | (357     | ) |   |   | - |   |
| Total revenue                          |   | $      | 577,159 |   |   | $      | 424,864 |      |   | $      | 78,023    |   |   | $      | 8,730    |   |   | $ | 1,088,776 |   |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |     |   |   |   |   |   |
| Operating income (loss)                |   | $      | 52,019  |   |   | $      | 62,003  |      |   | $      | 23,989    |   |   | $      | (106,737 | ) |   | $ | 31,274 |   |
| As a percentage of revenue             |   |   | 9.0     | %      |   |   | 14.6    | %         |   |   | 30.7      | %      |   |   | N/A      |   |   |   | 2.9 | % |
|                                   |   |   |    |   |   |   |    |      |   |   |      |   |   |   |     |   |   |   |   |   |
| Depreciation and amortization          |   | $      | 20,961  |   |   | $      | 2,408   |      |   | $      | 602       |   |   | $      | 10,885   |   |   | $ | 34,856 |   |
| Assets                                 |   |   | 914,256 |   |   |   | 107,231 |      |   |   | 835,348   |   |   |   | 693,839  |   |   |   | 2,550,674 |   |

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|                                                  |   | Three Months Ended |    |   | Six Months Ended |   |
|-------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                  |   | July 3,            |    |   | June 27,         |   |   | July 3, |   |   | June 27, |   |
|                                                  |   | 2010               |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                  |   |               |    |   |             |   |
| Interest and fee income                               |   | $                  | 66,625  |   |             | $      | 9,847 |   |   | $ | 138,111 |   |   | $ | 20,855 |   |
| Interest expense                                      |   |               | (21,617 | )      |             |   | (6,497 | ) |   |   | (43,097 | ) |   |   | (12,670 | ) |
| Provision for loan losses                             |   |               | (16,609 | )      |             |   | (324 | ) |   |   | (31,756 | ) |   |   | (343 | ) |
| Net interest income, net of provision for loan losses |   |               | 28,399  |   |             |   | 3,026 |   |   |   | 63,258 |   |   |   | 7,842 |   |
| Non-interest income:                                  |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Securitization income                                 |   |               | -       |   |             |   | 54,569 |   |   |   | - |   |   |   | 93,603 |   |
| Interchange income                                    |   |               | 56,918  |   |             |   | 6,297 |   |   |   | 107,450 |   |   |   | 13,119 |   |
| Other non-interest income                             |   |               | 3,024   |   |             |   | 9,600 |   |   |   | 5,817 |   |   |   | 17,811 |   |
| Total non-interest income                             |   |               | 59,942  |   |             |   | 70,466 |   |   |   | 113,267 |   |   |   | 124,533 |   |
| Less: Customer rewards costs                          |   |               | (31,853 | )      |             |   | (29,363 | ) |   |   | (60,053 | ) |   |   | (54,352 | ) |
| Financial Services revenue                            |   | $                  | 56,488  |   |             | $      | 44,129 |   |   | $ | 116,472 |   |   | $ | 78,023 |   |

| Three Months Ended:   |   | Retail  |   |   | Direct   |   |   | Total   |   |
|-----------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|
|                  |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |
|                  |   | 2010    |   |   | 2009     |   |   | 2010    |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Product Category      |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Hunting Equipment     |   |    | 37.5   | %      |     |   | 40.0   | %       |   |   | 31.9 | % |   |   | 34.6 | % |   |   | 35.6 | % |   |   | 38.0 | % |
| Clothing and Footwear |   |    | 18.5   |   |     |   | 17.5   |    |   |   | 23.4 |   |   |   | 24.5 |   |   |   | 20.1 |   |   |   | 20.1 |   |
| Fishing and Marine    |   |    | 24.5   |   |     |   | 24.6   |    |   |   | 22.1 |   |   |   | 21.0 |   |   |   | 23.7 |   |   |   | 23.3 |   |
| Camping               |   |    | 9.6    |   |     |   | 9.3    |    |   |   | 14.6 |   |   |   | 12.7 |   |   |   | 11.3 |   |   |   | 10.6 |   |
| Gifts and Furnishings |   |    | 9.9    |   |     |   | 8.6    |    |   |   | 8.0 |   |   |   | 7.2 |   |   |   | 9.3 |   |   |   | 8.0 |   |
| Total                 |   |    | 100.0  | %      |     |   | 100.0  | %       |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

| Six Months Ended:     |   | Retail  |   |   | Direct   |   |   | Total   |   |
|-----------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|
|                  |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |
|                  |   | 2010    |   |   | 2009     |   |   | 2010    |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Product Category      |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Hunting Equipment     |   |    | 41.6   | %      |     |   | 44.3   | %       |   |   | 34.4 | % |   |   | 35.4 | % |   |   | 38.9 | % |   |   | 40.8 | % |
| Clothing and Footwear |   |    | 18.9   |   |     |   | 18.5   |    |   |   | 26.3 |   |   |   | 27.7 |   |   |   | 21.7 |   |   |   | 22.1 |   |
| Fishing and Marine    |   |    | 21.1   |   |     |   | 20.5   |    |   |   | 18.8 |   |   |   | 17.9 |   |   |   | 20.2 |   |   |   | 19.4 |   |
| Camping               |   |    | 8.4    |   |     |   | 8.2    |    |   |   | 12.6 |   |   |   | 11.6 |   |   |   | 10.0 |   |   |   | 9.6 |   |
| Gifts and Furnishings |   |    | 10.0   |   |     |   | 8.5    |    |   |   | 7.9 |   |   |   | 7.4 |   |   |   | 9.2 |   |   |   | 8.1 |   |
| Total                 |   |    | 100.0  | %      |     |   | 100.0  | %       |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

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| 16. | FAIR VALUE MEASUREMENTS |
|-----|-------------------------|

|  ·  |  Level 1 – Quoted market prices in active markets for identical assets or liabilities. |
|--------------------|---------------------------------------------------------------------------------------------------|
|  ·  |  Level 2 – Observable inputs other than quoted market prices.                          |
|  ·  |  Level 3 – Unobservable inputs corroborated by little, if any, market data.            |

|                                                          |   | Fair Value at |    |
|---------------------------------------------------------------|--------|---------------|---------|
|                                                          |   | July 3,       |    |   | January 2, |   |   | June 27, |   |
| Assets - Level 3                                              |   | 2010          |    |   | 2010 |   |   | 2009 |   |
|                                                          |   |          |    |   |   |   |   |   |   |
| Economic development bonds                                    |   | $             | 107,397 |   |   | $ | 108,491 |   |   | $ | 115,650 |   |
| Interest-only strip, cash reserve accounts, and cash accounts |   |          | -       |   |   |   | 24,577 |   |   |   | 26,217 |   |
| Asset-backed trading securities                               |   |          | -       |   |   |   | 68,752 |   |   |   | 20,125 |   |
| Asset-backed available-for-sale securities                    |   |          | -       |   |   |   | 82,705 |   |   |   | 75,123 |   |
|                                                          |   | $             | 107,397 |   |   | $ | 284,525 |   |   | $ | 237,115 |   |

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|                                                            |   | Interest-Only |   |   |         |   |    |         |   |   |        |   |
|-----------------------------------------------------------------|--------|---------------|--------|--------|--------------|--------|---------|--------------|--------|--------|-------------|--------|
|                                                            |   | Strip,        |   |   |         |   |    | Asset-Backed |   |   |        |   |
|                                                            |   | Cash Reserve  |   |   | Asset-Backed |   |    | Available    |   |   | Economic    |   |
|                                                            |   | Accounts, and |   |   | Trading      |   |    | for Sale     |   |   | Development |   |
| Three months ended July 3, 2010:                                |   | Cash Accounts |   |   | Securities   |   |    | Securities   |   |   | Bonds       |   |
|                                                            |   |
| Balance, April 3, 2010                                          |   | $             | -      |   |         | $      | -       |         |   | $      | -           |   |   | $ | 111,356 |   |
| Included in accumulated other comprehensive income - unrealized |   |          | -      |   |         |   | -       |         |   |   | -           |   |   |   | (3,582 | ) |
| Purchases, issuances, and settlements, net                      |   |          | -      |   |         |   | -       |         |   |   | -           |   |   |   | (377 | ) |
| Balance, July 3, 2010                                           |   | $             | -      |   |         | $      | -       |         |   | $      | -           |   |   | $ | 107,397 |   |
|                                                            |   |          |   |   |         |   |    |         |   |   |        |   |   |   |   |   |
| Three months ended June 27, 2009:                               |   |          |   |   |         |   |    |         |   |   |        |   |   |   |   |   |
|                                                            |   |
| Balance, March 28, 2009                                         |   | $             | 17,725 |   |         | $      | 39,500  |         |   | $      | -           |   |   | $ | 116,161 |   |
| Total gains or losses:                                          |   |          |   |   |         |   |    |         |   |   |        |   |   |   |   |   |
| Included in earnings - realized                                 |   |          | 8,492  |   |         |   | -       |         |   |   | 19          |   |   |   | - |   |
| Included in accumulated other comprehensive income - unrealized |   |          | -      |   |         |   | -       |         |   |   | (1,820      | )      |   |   | (512 | ) |
| Purchases, issuances, and settlements, net                      |   |          | -      |   |         |   | (19,375 | )            |   |   | 76,924      |   |   |   | 1 |   |
| Balance, June 27, 2009                                          |   | $             | 26,217 |   |         | $      | 20,125  |         |   | $      | 75,123      |   |   | $ | 115,650 |   |

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|                                                            |   | Interest-Only |    |   |         |   |    |         |   |   |        |   |
|-----------------------------------------------------------------|--------|---------------|---------|--------|--------------|--------|---------|--------------|--------|--------|-------------|--------|
|                                                            |   | Strip,        |    |   |         |   |    | Asset-Backed |   |   |        |   |
|                                                            |   | Cash Reserve  |    |   | Asset-Backed |   |    | Available    |   |   | Economic    |   |
|                                                            |   | Accounts, and |    |   | Trading      |   |    | for Sale     |   |   | Development |   |
| Six months ended July 3, 2010:                                  |   | Cash Accounts |    |   | Securities   |   |    | Securities   |   |   | Bonds       |   |
|                                                            |   |
| Balance, January 2, 2010                                        |   | $             | 24,577  |   |         | $      | 68,752  |         |   | $      | 82,705      |   |   | $ | 108,491 |   |
| Change upon adoption of ASC Topics 810 and 860                  |   |          | (24,577 | )      |         |   | (68,752 | )            |   |   | (82,705     | )      |   |   | - |   |
| Included in accumulated other comprehensive income - unrealized |   |          | -       |   |         |   | -       |         |   |   | -           |   |   |   | 295 |   |
| Purchases, issuances, and settlements, net                      |   |          | -       |   |         |   | -       |         |   |   | -           |   |   |   | (1,389 | ) |
| Balance, July 3, 2010                                           |   | $             | -       |   |         | $      | -       |         |   | $      | -           |   |   | $ | 107,397 |   |
|                                                            |   |          |    |   |         |   |    |         |   |   |        |   |   |   |   |   |
| Six months ended June 27, 2009:                                 |   |          |    |   |         |   |    |         |   |   |        |   |   |   |   |   |
|                                                            |   |
| Balance, December 28, 2008                                      |   | $             | 30,021  |   |         | $      | 31,584  |         |   | $      | -           |   |   | $ | 112,585 |   |
| Total gains or losses:                                          |   |          |    |   |         |   |    |         |   |   |        |   |   |   |   |   |
| Included in earnings - realized                                 |   |          | 4,196   |   |         |   | -       |         |   |   | 19          |   |   |   | - |   |
| Included in accumulated other comprehensive income - unrealized |   |          | -       |   |         |   | -       |         |   |   | (1,820      | )      |   |   | 4,169 |   |
| Purchases, issuances, and settlements, net                      |   |          | (8,000  | )      |         |   | (11,459 | )            |   |   | 76,924      |   |   |   | (1,104 | ) |
| Balance, June 27, 2009                                          |   | $             | 26,217  |   |         | $      | 20,125  |         |   | $      | 75,123      |   |   | $ | 115,650 |   |

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|                                       |   | July 3,        |      |   | January 2,           |   |
|--------------------------------------------|--------|----------------|-----------|--------|----------------------|--------|
|                                       |   | 2010           |      |   | 2010                 |   |
|                                       |   | Carrying Value |      |   | Estimated Fair Value |   |   | Carrying Value |   |   | Estimated Fair Value |   |
| Financial Assets                           |   |           |      |   |                 |   |   |   |   |   |   |   |
| Credit card loans, net                     |   | $              | 2,329,491 |   |                 | $      | 2,329,491 |   |   | $ | 135,935 |   |   | $ | 140,199 |   |
| Held-to-maturity investment securities     |   |           | 224,905   |   |                 |   | 224,965 |   |   |   | - |   |   |   | - |   |
|                                       |   |           |      |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities                      |   |           |      |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Time deposits                              |   |           | 497,049   |   |                 |   | 524,239 |   |   |   | 476,664 |   |   |   | 499,838 |   |
| Secured long-term obligations of the Trust |   |           | 2,127,900 |   |                 |   | 2,141,823 |   |   |   | - |   |   |   | - |   |
| Long-term debt                             |   |           | 383,495   |   |                 |   | 379,187 |   |   |   | 348,279 |   |   |   | 343,108 |   |

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| 17. | ACCOUNTING PRONOUNCEMENTS |   |
|-----|---------------------------|--------|

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Item 2.

| ·   | the level of discretionary consumer spending; |
|--------------------|-----------------------------------------------|

| ·   | the state of the economy, including increases in unemployment levels and bankruptcy filings; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | changes in the capital and credit markets or the availability of capital and credit; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | our ability to comply with the financial covenants in our credit agreements; |
|--------------------|------------------------------------------------------------------------------|

| ·   | changes in consumer preferences and demographic trends; |
|--------------------|---------------------------------------------------------|

| ·   | our ability to successfully execute our multi-channel strategy; |
|--------------------|-----------------------------------------------------------------|

| ·   | the ability to negotiate favorable purchase, lease, and/or economic development arrangements for new retail store locations; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | expansion into new markets and market saturation due to new retail store openings; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | the rate of growth of general and administrative expenses associated with building a strengthened corporate infrastructure to support our growth initiatives; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increasing competition in the outdoor segment of the sporting goods industry; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | the cost of our products; |
|--------------------|---------------------------|

| ·   | political or financial instability in countries where the goods we sell are manufactured; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | increases in postage rates or paper and printing costs; |
|--------------------|---------------------------------------------------------|

| ·   | supply and delivery shortages or interruptions caused by system changes or other factors; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | adverse or unseasonal weather conditions; |
|--------------------|-------------------------------------------|

| ·   | fluctuations in operating results; |
|--------------------|------------------------------------|

| ·   | increased government regulation, including regulations relating to firearms and ammunition; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | inadequate protection of our intellectual property; |
|--------------------|-----------------------------------------------------|

| ·   | material security breaches of computer systems; |
|--------------------|-------------------------------------------------|

| ·   | our ability to protect our brand and reputation; |
|--------------------|--------------------------------------------------|

| ·   | changes in accounting rules and regulations applicable to securitization transactions, including related increases in required regulatory capital; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to manage credit, liquidity, interest rate, operational, legal, and compliance risks; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | increasing competition for credit card products and reward programs; |
|--------------------|----------------------------------------------------------------------|

| ·   | our ability to increase credit card receivables while managing fraud, delinquencies, and charge-offs; |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | our ability to securitize our credit card receivables at acceptable rates or access the deposits market at acceptable rates; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | decreased interchange fees received by our Financial Services business as a result of credit card industry regulation and/or litigation; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | impact of legislation, regulation, and supervisory regulatory actions (including with respect to the compliance examination conducted by the Federal Deposit Insurance Corporation (“FDIC”) in the second quarter of 2009) in the financial services industry including the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the “CARD Act”), new and proposed regulations affecting securitizations, and the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Reform Act”); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other factors that we may not have currently identified or quantified; and |
|--------------------|----------------------------------------------------------------------------|

| ·   | other risks, relevant factors, and uncertainties identified in our filings with the United States Securities and Exchange Commission (“SEC”) (including the information set forth in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended January 2, 2010, in Part II, Item 1A, of our Quarterly Report on Form 10-Q for the fiscal quarter ended April 3, 2010, and in Part II, Item 1A, of this report), which filings are available at the SEC’s website at www.sec.gov. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                       |   | Three Months Ended     |    |   |     |   |    |       |   |
|----------------------------|--------|------------------------|---------|--------|----------|--------|---------|------------|--------|
|                       |   | July 3,                |    |   | June 27, |   |    | Increase   |   |   | % |   |
|                       |   | 2010                   |    |   | 2009     |   |    | (Decrease) |   |   | Change |   |
|                       |   | (Dollars in Thousands) |    |
| Revenue:                   |   |                   |    |   |     |   |    |       |   |   |   |   |
| Retail                     |   | $                      | 293,950 |   |     | $      | 301,633 |       |   | $ | (7,683 | ) |   |   | (2.5 | ) % |
| Direct                     |   |                   | 171,541 |   |     |   | 199,512 |       |   |   | (27,971 | ) |   |   | (14.0 | ) |
| Total merchandise sales    |   |                   | 465,491 |   |     |   | 501,145 |       |   |   | (35,654 | ) |   |   | (7.1 | ) |
| Financial Services         |   |                   | 56,488  |   |     |   | 44,129  |       |   |   | 12,359 |   |   |   | 28.0 |   |
| Other revenue              |   |                   | 3,991   |   |     |   | 3,962   |       |   |   | 29 |   |   |   | 0.7 |   |
| Total revenue              |   | $                      | 525,970 |   |     | $      | 549,236 |       |   | $ | (23,266 | ) |   |   | (4.2 | ) |
|                       |   |                   |    |   |     |   |    |       |   |   |   |   |   |   |   |   |
| Operating income           |   | $                      | 30,669  |   |     | $      | 18,948  |       |   | $ | 11,721 |   |   |   | 61.9 |   |
|                       |   |                   |    |   |     |   |    |       |   |   |   |   |   |   |   |   |
| Earnings per diluted share |   | $                      | 0.26    |   |     | $      | 0.14    |       |   | $ | 0.12 |   |   |   | 85.7 |   |

|                       |   | Six Months Ended       |      |   |     |   |      |       |   |
|----------------------------|--------|------------------------|-----------|--------|----------|--------|-----------|------------|--------|
|                       |   | July 3,                |      |   | June 27, |   |      | Increase   |   |   | % |   |
|                       |   | 2010                   |      |   | 2009     |   |      | (Decrease) |   |   | Change |   |
|                       |   | (Dollars in Thousands) |      |
| Revenue:                   |   |                   |      |   |     |   |      |       |   |   |   |   |
| Retail                     |   | $                      | 565,242   |   |     | $      | 577,159   |       |   | $ | (11,917 | ) |   |   | (2.1 | ) % |
| Direct                     |   |                   | 394,285   |   |     |   | 424,864   |       |   |   | (30,579 | ) |   |   | (7.2 | ) |
| Total merchandise sales    |   |                   | 959,527   |   |     |   | 1,002,023 |       |   |   | (42,496 | ) |   |   | (4.2 | ) |
| Financial Services         |   |                   | 116,472   |   |     |   | 78,023    |       |   |   | 38,449 |   |   |   | 49.3 |   |
| Other revenue              |   |                   | 9,581     |   |     |   | 8,730     |       |   |   | 851 |   |   |   | 9.7 |   |
| Total revenue              |   | $                      | 1,085,580 |   |     | $      | 1,088,776 |       |   | $ | (3,196 | ) |   |   | (0.3 | ) |
|                       |   |                   |      |   |     |   |      |       |   |   |   |   |   |   |   |   |
| Operating income           |   | $                      | 46,608    |   |     | $      | 31,274    |       |   | $ | 15,334 |   |   |   | 49.0 |   |
|                       |   |                   |      |   |     |   |      |       |   |   |   |   |   |   |   |   |
| Earnings per diluted share |   | $                      | 0.38      |   |     | $      | 0.21      |       |   | $ | 0.17 |   |   |   | 81.0 |   |

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| ·   | increases in revenue from our Financial Services segment; |
|--------------------|-----------------------------------------------------------|

| ·   | managed decreases in catalog and Internet related marketing costs and improvements in catalog productivity; |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | decreases in impairment and restructuring charges; and |
|--------------------|--------------------------------------------------------|

| ·   | improved labor efficiencies in our Retail business. |
|--------------------|-----------------------------------------------------|

| ·   | Focus on Core Customers – Our goal is to use the product expertise we have developed over the years, along with a focused understanding of our core customers, to improve customer loyalty, enhance brand awareness, offer the best possible assortment of products in every merchandise category, and reduce unproductive inventory. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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| ·   | Improve Retail Profitability – Our goal is to improve retail profitability by concentrating on sales, advertising, and costs while providing excellent customer experiences. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Improve Merchandise Performance – Our goal is to improve margins and reduce unproductive inventory by focusing on vendors and assortment planning and management. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Retail Expansion – Our goal is to increase our retail presence across the United States and Canada by developing a profitable retail expansion strategy considering top market site locations with appropriate sized stores. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We incorporated our next generation store format into our new store opened on May 20, 2010, in Grand Junction, Colorado.  The Grand Junction store is 80,000 square feet and anchors the largest destination mall on the Western Slope of Colorado.  We also expect to open two new next-generation stores in 2011 in the United States – one in Allen, Texas, and one in Springfield, Oregon.  In addition, we plan to open one next-generation store in 2011 in Canada. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Direct Channel Growth – Our goal is to continue to fine-tune our catalogs, as well as the number of pages and product mix in each, in order to improve the profitability of each title.  We want to create steady, profitable growth in our Direct channels, while reducing marketing expenses and significantly increasing the percentage of market share we capture through the Internet. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Growth of World’s Foremost Bank – Our goal is to continue to attract new cardholders through our Retail and Direct businesses and increase the amount of merchandise or services customers purchase with their CLUB Visa cards while maintaining WFB profitability and preserving customer loyalty. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                      |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                      |   | July 3,            |   |   | June 27,         |   |   | July 3, |   |   | June 27, |   |
|                                                      |   | 2010               |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                      |   |               |   |   |             |   |   |   |   |   |   |   |
| Revenue                                                   |   |               | 100.00 | %      |             |   | 100.00 | % |   |   | 100.00 | % |   |   | 100.00 | % |
| Cost of revenue                                           |   |               | 56.97  |   |             |   | 59.37 |   |   |   | 57.95 |   |   |   | 59.92 |   |
| Gross profit (exclusive of depreciation and amortization) |   |               | 43.03  |   |             |   | 40.63 |   |   |   | 42.05 |   |   |   | 40.08 |   |
| Selling, distribution, and administrative expenses        |   |               | 36.85  |   |             |   | 35.06 |   |   |   | 37.59 |   |   |   | 35.98 |   |
| Impairment and restructuring charges                      |   |               | 0.35   |   |             |   | 2.13 |   |   |   | 0.17 |   |   |   | 1.23 |   |
| Operating income                                          |   |               | 5.83   |   |             |   | 3.44 |   |   |   | 4.29 |   |   |   | 2.87 |   |
| Other income (expense):                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                     |   |               | (1.07  | )      |             |   | (1.10 | ) |   |   | (1.02 | ) |   |   | (1.09 | ) |
| Other income, net                                         |   |               | 0.34   |   |             |   | 0.30 |   |   |   | 0.32 |   |   |   | 0.34 |   |
| Total other income (expense), net                         |   |               | (0.73  | )      |             |   | (0.80 | ) |   |   | (0.70 | ) |   |   | (0.75 | ) |
| Income before provision for income taxes                  |   |               | 5.10   |   |             |   | 2.64 |   |   |   | 3.59 |   |   |   | 2.12 |   |
| Provision for income taxes                                |   |               | 1.67   |   |             |   | 0.98 |   |   |   | 1.19 |   |   |   | 0.81 |   |
| Net income                                                |   |               | 3.43   | %      |             |   | 1.66 | % |   |   | 2.40 | % |   |   | 1.31 | % |

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|               |   | Three Months Ended     |    |   |   |   |     |       |
|--------------------|--------|------------------------|---------|--------|--------|--------|----------|------------|
|               |   | July 3,                |    |   | %      |   | June 27, |       |   | % |   | Increase |   |   | % |
|               |   | 2010                   |    |   | 2009   |   |     | (Decrease) |   |   | Change |
|               |   | (Dollars in Thousands) |
|               |   |                   |    |   |   |   |     |       |   |   |   |   |
| Retail             |   | $                      | 293,950 |   |   |   | 55.9     | %          |   | $ | 301,633 |   |   |   | 55.0 | % |   | $ | (7,683 | ) |   |   | (2.5 | ) % |
| Direct             |   |                   | 171,541 |   |   |   | 32.6     |       |   |   | 199,512 |   |   |   | 36.3 |   |   |   | (27,971 | ) |   |   | (14.0 | ) |
| Financial Services |   |                   | 56,488  |   |   |   | 10.7     |       |   |   | 44,129 |   |   |   | 8.0 |   |   |   | 12,359 |   |   |   | 28.0 |   |
| Other              |   |                   | 3,991   |   |   |   | 0.8      |       |   |   | 3,962 |   |   |   | 0.7 |   |   |   | 29 |   |   |   | 0.7 |   |
|               |   | $                      | 525,970 |   |   |   | 100.0    | %          |   | $ | 549,236 |   |   |   | 100.0 | % |   | $ | (23,266 | ) |   |   | (4.2 | ) |

| Three Months Ended:   |   | Retail  |   |   | Direct   |   |   | Total   |   |
|-----------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|
|                  |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |
|                  |   | 2010    |   |   | 2009     |   |   | 2010    |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Product Category      |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Hunting Equipment     |   |    | 37.5   | %      |     |   | 40.0   | %       |   |   | 31.9 | % |   |   | 34.6 | % |   |   | 35.6 | % |   |   | 38.0 | % |
| Clothing and Footwear |   |    | 18.5   |   |     |   | 17.5   |    |   |   | 23.4 |   |   |   | 24.5 |   |   |   | 20.1 |   |   |   | 20.1 |   |
| Fishing and Marine    |   |    | 24.5   |   |     |   | 24.6   |    |   |   | 22.1 |   |   |   | 21.0 |   |   |   | 23.7 |   |   |   | 23.3 |   |
| Camping               |   |    | 9.6    |   |     |   | 9.3    |    |   |   | 14.6 |   |   |   | 12.7 |   |   |   | 11.3 |   |   |   | 10.6 |   |
| Gifts and Furnishings |   |    | 9.9    |   |     |   | 8.6    |    |   |   | 8.0 |   |   |   | 7.2 |   |   |   | 9.3 |   |   |   | 8.0 |   |
| Total                 |   |    | 100.0  | %      |     |   | 100.0  | %       |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

----

Table of Contents

|                    |    | Three Months Ended     |   |    |     |   |    |
|-------------------------|---------|------------------------|--------|---------|----------|--------|---------|
|                    |    | July 3,                |   |    | June 27, |   |    |  Increase |   |  % |
|                    |    | 2010                   |   |    | 2009     |   |    | (Decrease) |   | Change |
|                    |    | (Dollars in Thousands) |
|                    |    |                   |
| Comparable stores sales | $  | 279,580                |   |  $ | 293,092  |   | $  | (13,512) |   | (4,6)%  |

----

Table of Contents

|                                                  |   | July 3,        |    |   | June 27, |   |
|-------------------------------------------------------|--------|----------------|---------|--------|----------|--------|
|                                                  |   | 2010           |    |   | 2009     |   |
|                                                  |   | (In Thousands) |    |
|                                                  |   |           |    |
| Interest and fee income                               |   | $              | 66,625  |   |     | $      | 9,847 |   |
| Interest expense                                      |   |           | (21,617 | )      |     |   | (6,497 | ) |
| Provision for loan losses                             |   |           | (16,609 | )      |     |   | (324 | ) |
| Net interest income, net of provision for loan losses |   |           | 28,399  |   |     |   | 3,026 |   |
| Non-interest income:                                  |   |           |    |   |     |   |   |   |
| Securitization income                                 |   |           | -       |   |     |   | 54,569 |   |
| Interchange income                                    |   |           | 56,918  |   |     |   | 6,297 |   |
| Other non-interest income                             |   |           | 3,024   |   |     |   | 9,600 |   |
| Total non-interest income                             |   |           | 59,942  |   |     |   | 70,466 |   |
| Less: Customer rewards costs                          |   |           | (31,853 | )      |     |   | (29,363 | ) |
| Financial Services revenue                            |   | $              | 56,488  |   |     | $      | 44,129 |   |

----

Table of Contents

|                                                                                     |   | July 3,                |    | June 27, |
|------------------------------------------------------------------------------------------|--------|------------------------|---------|----------|
|                                                                                     |   | 2010                   |    | 2009     |
|                                                                                     |   | (Dollars in Thousands) |
|                                                                                     |   |                   |
| Interest and fee income                                                                  |   | $                      | 66,625  |     |   | $ | 62,352 |   |
| Interchange income                                                                       |   |                   | 56,918  |     |   |   | 51,276 |   |
| Other non-interest income                                                                |   |                   | 3,024   |     |   |   | 3,164 |   |
| Interest expense                                                                         |   |                   | (21,617 | )        |   |   | (25,073 | ) |
| Provision for loan losses                                                                |   |                   | (16,609 | )        |   |   | (26,321 | ) |
| Customer rewards costs                                                                   |   |                   | (31,853 | )        |   |   | (29,363 | ) |
| Other                                                                                    |   |                   | -       |     |   |   | 8,094 |   |
| Managed Financial Services revenue                                                       |   | $                      | 56,488  |     |   | $ | 44,129 |   |
|                                                                                     |
| Managed Financial Services Revenue as a Percentage of Average Managed Credit Card Loans: |
| Interest and fee income                                                                  |   |                   | 11.1    | %        |   |   | 11.1 | % |
| Interchange income                                                                       |   |                   | 9.4     |     |   |   | 9.1 |   |
| Other non-interest income                                                                |   |                   | 0.5     |     |   |   | 0.6 |   |
| Interest expense                                                                         |   |                   | (3.6    | )        |   |   | (4.5 | ) |
| Provision for loan losses                                                                |   |                   | (2.7    | )        |   |   | (4.7 | ) |
| Customer rewards costs                                                                   |   |                   | (5.3    | )        |   |   | (5.2 | ) |
| Other                                                                                    |   |                   | -       |     |   |   | 1.4 |   |
| Managed Financial Services revenue                                                       |   |                   | 9.4     | %        |   |   | 7.8 | % |

----

Table of Contents

|                                                                 |   | Three Months Ended                                         |      |   |     |   |      |       |   |
|----------------------------------------------------------------------|--------|------------------------------------------------------------|-----------|--------|----------|--------|-----------|------------|--------|
|                                                                 |   | July 3,                                                    |      |   | June 27, |   |      | Increase   |   |   | % |   |
|                                                                 |   | 2010                                                       |      |   | 2009     |   |      | (Decrease) |   |   | Change |   |
|                                                                 |   | (Dollars in Thousands Except Average Balance per Account ) |      |
|                                                                 |   |                                                       |      |   |     |   |      |       |   |   |   |   |
| Average balance of managed credit card loans                         |   | $                                                          | 2,413,975 |   |     | $      | 2,244,608 |       |   | $ | 169,367 |   |   |   | 7.5 | % |
| Average number of active credit card accounts                        |   |                                                       | 1,286,901 |   |     |   | 1,220,038 |       |   |   | 66,863 |   |   |   | 5.5 |   |
|                                                                 |   |                                                       |      |   |     |   |      |       |   |   |   |   |   |   |   |   |
| Average balance per active credit card account                       |   | $                                                          | 1,876     |   |     | $      | 1,840     |       |   | $ | 36 |   |   |   | 2.0 |   |
|                                                                 |   |                                                       |      |   |     |   |      |       |   |   |   |   |   |   |   |   |
| Net charge-offs on managed loans                                     |   | $                                                          | 28,856    |   |     | $      | 29,417    |       |   | $ | (561 | ) |   |   | (1.9 | ) |
| Net charge-offs as a percentage of average managed credit card loans |   |                                                       | 4.78      | %      |     |   | 5.24      | %          |   |   | (0.46 | ) % |   |   |   |   |

----

Table of Contents

| ·   | shifts in customer preferences; |
|--------------------|---------------------------------|

| ·   | retail store, distribution, and warehousing costs which we exclude from our cost of revenue; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Financial Services revenue we include in revenue for which there are no costs of revenue; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | real estate land sales we include in revenue for which costs vary by transaction; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | outfitter services revenue we include in revenue for which there are no costs of revenue; and |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | customer shipping charges in revenue which are slightly higher than shipping costs in costs of revenue because of our practice of pricing shipping charges to match costs. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | Three Months Ended     |    |     |   |       |    |   |
|------------------------------------------|--------|------------------------|---------|----------|--------|------------|---------|--------|
|                                     |   | July 3,                |    | June 27, |   | Increase   |    | %      |   |
|                                     |   | 2010                   |    | 2009     |   | (Decrease) |    | Change |   |
|                                     |   | (Dollars in Thousands) |    |
|                                     |   |                   |    |
| Merchandise sales                        |   | $                      | 465,491 |     |   | $          | 501,145 |   |   | $ | (35,654 | ) |   |   | (7.1 | ) % |
| Merchandise gross margin                 |   |                   | 167,101 |     |   | $          | 175,750 |   |   |   | (8,649 | ) |   |   | (4.9 | ) |
| Merchandise gross margin as a percentage |   |                   |    |     |   |       |    |   |   |   |   |   |   |   |   |   |
| of merchandise revenue                   |   |                   | 35.9    | %        |   |       | 35.1    | %      |   |   | 0.8 |   | % |   |

|                                                          |   | Three Months Ended     |    |     |   |       |    |   |
|---------------------------------------------------------------|--------|------------------------|---------|----------|--------|------------|---------|--------|
|                                                          |   | July 3,                |    | June 27, |   | Increase   |    |   | % |
|                                                          |   | 2010                   |    | 2009     |   | (Decrease) |    |   | Change |
|                                                          |   | (Dollars in Thousands) |
|                                                          |   |                   |    |     |   |       |
| Selling, distribution, and administrative expenses            |   | $                      | 193,818 |     |   | $          | 192,536 |   |   | $ | 1,282 |   |   |   | 0.7 | % |
| SD&A expenses as a percentage of  total revenue |   |                   | 36.8    | %        |   |       | 35.1    | %      |   |   |   |   |   |   |   |   |
| Retail store pre-opening costs                                |   | $                      | 1,583   |     |   | $          | 1,311   |   |   |   | 272 |   |   |   | 20.7 |   |

----

Table of Contents

| ·   | managed reductions in catalog-related costs resulting in a decrease in catalog and Internet marketing costs of $3 million; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | an increase of $1 million in employee compensation partially due to the opening of our Grand Junction, Colorado, retail store; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | an increase in insurance and benefits of $2 million; and |
|--------------------|----------------------------------------------------------|

| ·   | an increase of contract labor of $1 million. |
|--------------------|----------------------------------------------|

| ·   | An increase in marketing fees of $6 million received from the Financial Services segment. |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | An increase in software and equipment expense of $1 million related to retail store maintenance. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | A net decrease in catalog and Internet related marketing costs of $3 million compared to the comparable period of 2009 primarily due to a managed reduction in catalog page count and lower circulation. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase in marketing fees of $5 million received from the Financial Services segment. |
|--------------------|-------------------------------------------------------------------------------------------|

|    ·  | An increase of $11 million in the marketing fee paid by the Financial Services segment to the Retail segment ($6 million) and the Direct business segment ($5 million). |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | Changes in marketing programs and a reduction in new accounts resulting in a decrease of $1 million in advertising and promotional costs. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | An increase in contract labor of $1 million primarily as a result of an increase in collection agency costs. |
|--------------|--------------------------------------------------------------------------------------------------------------|

| ·   | An increase of $1 million in employee compensation. |
|--------------------|-----------------------------------------------------|

| ·   | An increase in insurance and benefits of $2 million. |
|--------------------|------------------------------------------------------|

|                   |   | July 3, |   |   | June 27, |   |
|------------------------|--------|---------|--------|--------|----------|--------|
|                   |   | 2010    |   |   | 2009     |   |
| Impariment losses on:  |   |    |   |   |     |   |
| Property and equipment |   | $       | -      |   |     | $      | 1,532 |   |
| Land held for sale     |   |    | 1,834  |   |     |   | 10,160 |   |
|                   |   |    |   |   |     |   |   |   |
|   Total           |   | $       | 1,834  |   |     | $      | 11,692 |   |

----

Table of Contents

|                                                    |   | Three Months Ended     |   |   |     |   |   |       |   |
|---------------------------------------------------------|--------|------------------------|--------|--------|----------|--------|--------|------------|--------|
|                                                    |   | July 3,                |   |   | June 27, |   |   | Increase   |   |   | % |   |
|                                                    |   | 2010                   |   |   | 2009     |   |   | (Decrease) |   |   | Change |   |
|                                                    |   | (Dollars in Thousands) |   |
|                                                    |   |                   |   |   |     |   |
| Total operating income                                  |   | $                      | 30,669 |   |     | $      | 18,948 |       |   | $ | 11,721 |   |   |   | 61.9 | % |
|                                                    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Total operating income as a percentage of total revenue |   |                   | 5.8    | %      |     |   | 3.4    | %          |   |   |   |   |   |   |   |   |
|                                                    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Operating income by business segment:                   |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Retail                                                  |   | $                      | 41,105 |   |     | $      | 33,965 |       |   |   | 7,140 |   |   |   | 21.0 |   |
| Direct                                                  |   |                   | 30,572 |   |     |   | 32,587 |       |   |   | (2,015 | ) |   |   | (6.2 | ) |
| Financial Services                                      |   |                   | 13,112 |   |     |   | 12,020 |       |   |   | 1,092 |   |   |   | 9.1 |   |
|                                                    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Operating income as a percentage of segment revenue:    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Retail                                                  |   |                   | 14.0   | %      |     |   | 11.3   | %          |   |   |   |   |   |   |   |   |
| Direct                                                  |   |                   | 17.8   |   |     |   | 16.3   |       |   |   |   |   |   |   |   |   |
| Financial Services                                      |   |                   | 23.2   |   |     |   | 27.2   |       |   |   |   |   |   |   |   |   |

----

Table of Contents

|               |   | Six Months Ended       |      |   |   |   |     |       |
|--------------------|--------|------------------------|-----------|--------|--------|--------|----------|------------|
|               |   | July 3,                |      |   | %      |   | June 27, |       |   | % |   | Increase |   |   | % |
|               |   | 2010                   |      |   | 2009   |   |     | (Decrease) |   |   | Change |
|               |   | (Dollars in Thousands) |
|               |   |                   |      |   |   |   |     |       |   |   |   |   |
| Retail             |   | $                      | 565,242   |   |   |   | 52.1     | %          |   | $ | 577,159 |   |   |   | 53.0 | % |   | $ | (11,917 | ) |   |   | (2.1 | ) % |
| Direct             |   |                   | 394,285   |   |   |   | 36.3     |       |   |   | 424,864 |   |   |   | 39.0 |   |   |   | (30,579 | ) |   |   | (7.2 | ) |
| Financial Services |   |                   | 116,472   |   |   |   | 10.7     |       |   |   | 78,023 |   |   |   | 7.2 |   |   |   | 38,449 |   |   |   | 49.3 |   |
| Other              |   |                   | 9,581     |   |   |   | 0.9      |       |   |   | 8,730 |   |   |   | 0.8 |   |   |   | 851 |   |   |   | 9.7 |   |
|               |   | $                      | 1,085,580 |   |   |   | 100.0    | %          |   | $ | 1,088,776 |   |   |   | 100.0 | % |   | $ | (3,196 | ) |   |   | (0.3 | ) |

| Six Months Ended:     |   | Retail  |   |   | Direct   |   |   | Total   |   |
|-----------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|
|                  |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |   | July 3, |   |   | June 27, |   |
|                  |   | 2010    |   |   | 2009     |   |   | 2010    |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Product Category      |   |    |   |   |     |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Hunting Equipment     |   |    | 41.6   | %      |     |   | 44.3   | %       |   |   | 34.4 | % |   |   | 35.4 | % |   |   | 38.9 | % |   |   | 40.8 | % |
| Clothing and Footwear |   |    | 18.9   |   |     |   | 18.5   |    |   |   | 26.3 |   |   |   | 27.7 |   |   |   | 21.7 |   |   |   | 22.1 |   |
| Fishing and Marine    |   |    | 21.1   |   |     |   | 20.5   |    |   |   | 18.8 |   |   |   | 17.9 |   |   |   | 20.2 |   |   |   | 19.4 |   |
| Camping               |   |    | 8.4    |   |     |   | 8.2    |    |   |   | 12.6 |   |   |   | 11.6 |   |   |   | 10.0 |   |   |   | 9.6 |   |
| Gifts and Furnishings |   |    | 10.0   |   |     |   | 8.5    |    |   |   | 7.9 |   |   |   | 7.4 |   |   |   | 9.2 |   |   |   | 8.1 |   |
| Total                 |   |    | 100.0  | %      |     |   | 100.0  | %       |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |   | 100.0 | % |

----

Table of Contents

|                    |    | Six Month Ended        |   |    |     |   |    |
|-------------------------|---------|------------------------|--------|---------|----------|--------|---------|
|                    |    | July 3,                |   |    | June 27, |   |    |  Increase |   |  % |
|                    |    | 2010                   |   |    | 2009     |   |    | (Decrease) |   | Change |
|                    |    | (Dollars in Thousands) |
|                    |    |                   |
| Comparable stores sales | $  | 537,546                |   |  $ | 555,498  |   | $  | (17,952) |   | (3.2)%  |

----

Table of Contents

|                                                  |   | July 3,        |    |   | June 27, |   |
|-------------------------------------------------------|--------|----------------|---------|--------|----------|--------|
|                                                  |   | 2010           |    |   | 2009     |   |
|                                                  |   | (In Thousands) |    |
|                                                  |   |           |    |
| Interest and fee income                               |   | $              | 138,111 |   |     | $      | 20,855 |   |
| Interest expense                                      |   |           | (43,097 | )      |     |   | (12,670 | ) |
| Provision for loan losses                             |   |           | (31,756 | )      |     |   | (343 | ) |
| Net interest income, net of provision for loan losses |   |           | 63,258  |   |     |   | 7,842 |   |
| Non-interest income:                                  |   |           |    |   |     |   |   |   |
| Securitization income                                 |   |           | -       |   |     |   | 93,603 |   |
| Interchange income                                    |   |           | 107,450 |   |     |   | 13,119 |   |
| Other non-interest income                             |   |           | 5,817   |   |     |   | 17,811 |   |
| Total non-interest income                             |   |           | 113,267 |   |     |   | 124,533 |   |
| Less: Customer rewards costs                          |   |           | (60,053 | )      |     |   | (54,352 | ) |
| Financial Services revenue                            |   | $              | 116,472 |   |     | $      | 78,023 |   |

----

Table of Contents

|                                                                                     |   | July 3,                |    | June 27, |
|------------------------------------------------------------------------------------------|--------|------------------------|---------|----------|
|                                                                                     |   | 2010                   |    | 2009     |
|                                                                                     |   | (Dollars in Thousands) |
|                                                                                     |   |                   |
| Interest and fee income                                                                  |   | $                      | 138,111 |     |   | $ | 124,872 |   |
| Interchange income                                                                       |   |                   | 107,450 |     |   |   | 96,509 |   |
| Other fee income                                                                         |   |                   | 5,817   |     |   |   | 6,107 |   |
| Interest expense                                                                         |   |                   | (43,097 | )        |   |   | (48,995 | ) |
| Provision for loan losses                                                                |   |                   | (31,756 | )        |   |   | (49,515 | ) |
| Customer rewards costs                                                                   |   |                   | (60,053 | )        |   |   | (54,352 | ) |
| Other                                                                                    |   |                   | -       |     |   |   | 3,397 |   |
| Managed Financial Services revenue                                                       |   | $                      | 116,472 |     |   | $ | 78,023 |   |
|                                                                                     |   |                   |    |     |   |   |   |   |
| Managed Financial Services Revenue as a Percentage of Average Managed Credit Card Loans: |
| Interest income                                                                          |   |                   | 11.4    | %        |   |   | 11.1 | % |
| Interchange income                                                                       |   |                   | 8.9     |     |   |   | 8.6 |   |
| Other fee income                                                                         |   |                   | 0.5     |     |   |   | 0.6 |   |
| Interest expense                                                                         |   |                   | (3.6    | )        |   |   | (4.4 | ) |
| Provision for loan losses                                                                |   |                   | (2.6    | )        |   |   | (4.4 | ) |
| Customer rewards costs                                                                   |   |                   | (5.0    | )        |   |   | (4.8 | ) |
| Other                                                                                    |   |                   | -       |     |   |   | 0.3 |   |
| Managed Financial Services revenue                                                       |   |                   | 9.6     | %        |   |   | 7.0 | % |

----

Table of Contents

|                                                                 |   | Six Months Ended                                           |      |   |     |   |      |       |   |
|----------------------------------------------------------------------|--------|------------------------------------------------------------|-----------|--------|----------|--------|-----------|------------|--------|
|                                                                 |   | July 3,                                                    |      |   | June 27, |   |      | Increase   |   |   | % |   |
|                                                                 |   | 2010                                                       |      |   | 2009     |   |      | (Decrease) |   |   | Change |   |
|                                                                 |   | (Dollars in Thousands Except Average Balance per Account ) |      |
|                                                                 |   |                                                       |      |   |     |   |      |       |   |   |   |   |
| Average balance of managed credit card loans                         |   | $                                                          | 2,418,057 |   |     | $      | 2,241,491 |       |   | $ | 176,566 |   |   |   | 7.9 | % |
| Average number of active credit card accounts                        |   |                                                       | 1,289,054 |   |     |   | 1,215,532 |       |   |   | 73,522 |   |   |   | 6.0 |   |
|                                                                 |   |                                                       |      |   |     |   |      |       |   |   |   |   |   |   |   |   |
| Average balance per active credit card account                       |   | $                                                          | 1,876     |   |     | $      | 1,844     |       |   | $ | 32 |   |   |   | 1.7 |   |
|                                                                 |   |                                                       |      |   |     |   |      |       |   |   |   |   |   |   |   |   |
| Net charge-offs on managed loans                                     |   | $                                                          | 58,862    |   |     | $      | 55,832    |       |   | $ | 3,030 |   |   |   | 5.4 |   |
| Net charge-offs as a percentage of average managed credit card loans |   |                                                       | 4.87      | %      |     |   | 4.98      | %          |   |   | (0.11 | ) % |   |   |   |   |

----

Table of Contents

|                                                            |   | Six Months Ended       |    |     |   |       |      |   |
|-----------------------------------------------------------------|--------|------------------------|---------|----------|--------|------------|-----------|--------|
|                                                            |   | July 3,                |    | June 27, |   | Increase   |      | %      |   |
|                                                            |   | 2010                   |    | 2009     |   | (Decrease) |      | Change |   |
|                                                            |   | (Dollars in Thousands) |    |
|                                                            |   |                   |    |
| Merchandise sales                                               |   | $                      | 959,527 |     |   | $          | 1,002,023 |   |   | $ | (42,496 | ) |   |   | (4.2 | ) % |
| Merchandise gross margin                                        |   |                   | 331,570 |     |   |       | 350,314   |   |   |   | (18,744 | ) |   |   | (5.4 | ) |
| Merchandise gross margin as a percentage of merchandise revenue |   |                   | 34.6    | %        |   |       | 35.0      | %      |   |   | (0.4 | ) | % |   |

|                                               |   | Six Months Ended       |    |     |   |       |    |   |
|----------------------------------------------------|--------|------------------------|---------|----------|--------|------------|---------|--------|
|                                               |   | July 3,                |    | June 27, |   | Increase   |    |   | % |
|                                               |   | 2010                   |    | 2009     |   | (Decrease) |    |   | Change |
|                                               |   | (Dollars in Thousands) |
|                                               |   |                   |    |     |   |       |
| Selling, distribution, and administrative expenses |   | $                      | 408,054 |     |   | $          | 391,758 |   |   | $ | 16,296 |   |   |   | 4.2 | % |
| SD&A expenses as a percentage of total revenue |   |                   | 37.6    | %        |   |       | 36.0    | %      |   |   |   |   |   |   |   |   |
| Retail store pre-opening costs                     |   | $                      | 2,459   |     |   | $          | 2,085   |   |   |   | 374 |   |   |   | 17.9 |   |

| ·   | an increase in operating expenses of $18 million relating to matters arising out of the FDIC compliance examination; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | a decrease in catalog and Internet marketing costs of $6 million; |
|--------------------|-------------------------------------------------------------------|

| ·   | a decrease of $3 million in employee compensation and benefits; |
|--------------------|-----------------------------------------------------------------|

| ·   | an increase in costs for contract labor of $3 million; and |
|--------------------|------------------------------------------------------------|

| ·   | an increase in new store opening related reimbursements and capitalized costs of $2 million. |
|--------------------|----------------------------------------------------------------------------------------------|

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| ·   | An increase in marketing fees of $10 million received from the Financial Services segment. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | A decrease in comparable store employee compensation and benefits of $5 million realized from our focus to enhance our retail store efficiencies. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating costs for new stores that were not open in the comparable period of 2009 of $3 million, including $2 million in employee compensation and benefit costs. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A net decrease in catalog and Internet related marketing costs of $6 million compared to the comparable period of 2009 primarily due to a managed reduction in catalog page count and lower circulation. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increased marketing fees of $8 million received from the Financial Services segment. |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | A decrease of $1 million in employee compensation and benefits. |
|--------------------|-----------------------------------------------------------------|

| ·  | An increase of $18 million in the marketing fee paid by the Financial Services segment to the Retail segment ($10 million) and the Direct business segment ($8 million). |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase in operating expenses of $18 million relating to matters arising out of the FDIC compliance examination. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | Changes in marketing programs and a reduction in new accounts resulting in a decrease of $3 million in advertising and promotional costs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase in contract labor of $2 million primarily as a result of an increase in collection agency costs. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | An increase in employee compensation and benefits of $4 million. |
|--------------------|------------------------------------------------------------------|

| ·   | An increase in depreciation and amortization of $1 million. |
|--------------------|-------------------------------------------------------------|

|                           |   | July 3, |   |   | June 27, |   |
|--------------------------------|--------|---------|--------|--------|----------|--------|
|                           |   | 2010    |   |   | 2009     |   |
| Impairment losses on:          |   |    |   |   |     |   |
| Property and equipment         |   | $       | -      |   |     | $      | 2,604 |   |
| Land held for sale             |   |    | 1,834  |   |     |   | 10,160 |   |
|                           |   |    |   |   |     |   |   |   |
| Restructuring charges for:     |   |    |   |   |     |   |   |   |
| Severance and related benefits |   |    | -      |   |     |   | 606 |   |
| Total                          |   | $       | 1,834  |   |     | $      | 13,370 |   |

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|                                                    |   | Six Months Ended       |   |   |     |   |   |       |   |
|---------------------------------------------------------|--------|------------------------|--------|--------|----------|--------|--------|------------|--------|
|                                                    |   | July 3,                |   |   | June 27, |   |   | Increase   |   |   | % |   |
|                                                    |   | 2010                   |   |   | 2009     |   |   | (Decrease) |   |   | Change |   |
|                                                    |   | (Dollars in Thousands) |   |
|                                                    |   |                   |   |   |     |   |
| Total operating income                                  |   | $                      | 46,608 |   |     | $      | 31,274 |       |   | $ | 15,334 |   |   |   | 49.0 | % |
|                                                    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Total operating income as a percentage of total revenue |   |                   | 4.3    | %      |     |   | 2.9    | %          |   |   |   |   |   |   |   |   |
|                                                    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Operating income by business segment:                   |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Retail                                                  |   | $                      | 59,047 |   |     | $      | 52,019 |       |   |   | 7,028 |   |   |   | 13.5 |   |
| Direct                                                  |   |                   | 60,842 |   |     |   | 62,003 |       |   |   | (1,161 | ) |   |   | (1.9 | ) |
| Financial Services                                      |   |                   | 26,059 |   |     |   | 23,989 |       |   |   | 2,070 |   |   |   | 8.6 |   |
|                                                    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Operating income as a percentage of segment revenue:    |   |                   |   |   |     |   |   |       |   |   |   |   |   |   |   |   |
| Retail                                                  |   |                   | 10.4   | %      |     |   | 9.0    | %          |   |   |   |   |   |   |   |   |
| Direct                                                  |   |                   | 15.4   |   |     |   | 14.6   |       |   |   |   |   |   |   |   |   |
| Financial Services                                      |   |                   | 22.4   |   |     |   | 30.7   |       |   |   |   |   |   |   |   |   |

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|                                           |   | July 3, |   |   | January 2, |   |   | June 27, |   |
|------------------------------------------------|--------|---------|--------|--------|------------|--------|--------|----------|--------|
|                                           |   | 2010    |   |   | 2010       |   |   | 2009     |   |
| Number of days delinquent and still accruing:  |   |    |   |   |       |   |   |     |   |
| Greater than 30 days                           |   |    | 0.94   | %      |       |   | 1.07   | %        |   |   | 1.14 | % |
| Greater than 60 days                           |   |    | 0.61   |   |       |   | 0.66   |     |   |   | 0.69 |   |
| Greater than 90 days                           |   |    | 0.33   |   |       |   | 0.36   |     |   |   | 0.38 |   |
|                                           |   |    |   |   |       |   |   |     |   |   |   |   |
| Non-accrual                                    |   |    | 0.23   |   |       |   | 0.18   |     |   |   | 0.10 |   |
| Restructured (excluded from percentages above) |   |    | 3.64   |   |       |   | 3.52   |     |   |   | 2.99 |   |

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|                       |   | July 3, |   |   | January 2, |   |   | June 27, |   |
|----------------------------|--------|---------|--------|--------|------------|--------|--------|----------|--------|
|                       |   | 2010    |   |   | 2010       |   |   | 2009     |   |
| Number of days delinquent: |   |    |   |   |       |   |   |     |   |
| Greater than 30 days       |   |    | 1.45   | %      |       |   | 1.79   | %        |   |   | 1.81 | % |
| Greater than 60 days       |   |    | 0.91   |   |       |   | 1.09   |     |   |   | 1.08 |   |
| Greater than 90 days       |   |    | 0.47   |   |       |   | 0.56   |     |   |   | 0.56 |   |

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|                                                                                                     |   | Three Months Ended     |    |   | Six Months Ended |   |
|----------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|------------------|--------|
|                                                                                                     |   | July 3,                |    |   | June 27,         |   |   | July 3, |   |   | June 27, |   |
|                                                                                                     |   | 2010                   |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                                                                     |   | (Dollars in Thousands) |    |
|                                                                                                     |   |                   |    |   |             |   |   |   |   |   |   |   |
| Balance, beginning of period                                                                             |   | $                      | 104,850 |   |             | $      | 1,180 |   |   | $ | 1,374 |   |   | $ | 1,507 |   |
| Change in allowance for loan losses upon adoption of ASC Topics 810 and 860                              |   |                   | -       |   |             |   | - |   |   |   | 114,573 |   |   |   | - |   |
|                                                                                                     |   |                   | 104,850 |   |             |   | 1,180 |   |   |   | 115,947 |   |   |   | 1,507 |   |
| Provision for loan losses                                                                                |   |                   | 16,609  |   |             |   | 324 |   |   |   | 31,756 |   |   |   | 343 |   |
|                                                                                                     |   |                   |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                                                                                              |   |                   | (29,422 | )      |             |   | (357 | ) |   |   | (59,404 | ) |   |   | (745 | ) |
| Recoveries                                                                                               |   |                   | 3,963   |   |             |   | 46 |   |   |   | 7,701 |   |   |   | 88 |   |
| Net charge-offs                                                                                          |   |                   | (25,459 | )      |             |   | (311 | ) |   |   | (51,703 | ) |   |   | (657 | ) |
| Balance, end of period                                                                                   |   | $                      | 96,000  |   |             | $      | 1,193 |   |   | $ | 96,000 |   |   | $ | 1,193 |   |
|                                                                                                     |   |                   |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs on securitized credit card loans                                                         |   | $                      | -       |   |             | $      | (25,010 | ) |   | $ | - |   |   | $ | (47,278 | ) |
| Net charge-offs on credit card loans on consolidated balance sheet                                       |   |                   | (25,459 | )      |             |   | (311 | ) |   |   | (51,703 | ) |   |   | (657 | ) |
| Charge-offs of accrued interest and fees (recorded as a reduction in interest and fee income)            |   |                   | (3,397  | )      |             |   | (4,096 | ) |   |   | (7,159 | ) |   |   | (7,897 | ) |
| Total net charge-offs including accrued interest and fees                                                |   | $                      | (28,856 | )      |             | $      | (29,417 | ) |   | $ | (58,862 | ) |   | $ | (55,832 | ) |
|                                                                                                     |   |                   |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   |                   |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs including accrued interest and fees as a percentage of average managed credit card loans |   |                   | 4.78    | %      |             |   | 5.24 | % |   |   | 4.87 | % |   |   | 4.98 | % |

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|                                                |   | Six Months Ended |     |
|-----------------------------------------------------|--------|------------------|----------|
|                                                |   | July 3,          |     |   | June 27, |   |
|                                                |   | 2010             |     |   | 2009 |   |
|                                                |   | (In Thousands)   |     |
| Net cash provided by (used in) operating activities |   | $                | 26,170   |   |   | $ | (46,753 | ) |
|                                                |   |             |     |   |   |   |   |   |
| Net cash used in investing activities               |   |             | (218,867 | ) |   |   | (98,522 | ) |
|                                                |   |             |     |   |   |   |   |   |
| Net cash (used in) provided by financing activities |   |             | (115,048 | ) |   |   | 215,927 |   |

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|                                                                                                                                      |   |    | Six Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|------------------|--------|
|                                                                                                                                      |   |    | July 3,          |   |   |   | June 27, |   |
|                                                                                                                                      |   |    | 2010             |   |   |   | 2009 |   |
|                                                                                                                                      |   |    | (In Thousands)   |   |
|  Borrowings on lines of credit and short-term debt, net                                                                              |   |  $ |   32,338    |   |   |  $ | 113,533 |   |
|  Repayment of secured borrowings of the Trust, net                                                                                   |   |    |  (145,000   | )      |   |   |  - |   |
|  Issuances of long-term debt, net of repayments                                                                                      |   |    |  (139       | )      |   |   |  (147 | ) |
|  Total                                                                                                                               |   |  $ | (112,801         | )      |   |  $ | 113,386 |   |
|                                                                                                                                      |   |    |             |   |   |   |   |   |
|                                                                                                                                      |   |    |             |   |   |   |   |   |
|  Available funds under our revolving credit facilities at:                                                                           |   |    | July 3,          |   |   |   | June 27, |   |
|                                                                                                                                      |   |    |  2010       |   |   |   |  2009 |   |
|                                                                                                                                      |   |    | (In Thousands)   |   |
|  Amounts available for borrowing under credit facilities (1)                                                                         |   |  $ | 364,105          |   |   |  $ | 443,375 |   |
|  Principal amounts outstanding                                                                                                       |   |    |  (38,232    | )      |   |   |  (144,835 | ) |
|  Outstanding letters of credit and standby letters of credit                                                                         |   |    |  (29,163    | )      |   |   |  (22,280 | ) |
|  Remaining borrowing capacity, excluding WFB facilities                                                                              |   |  $ | 296,710          |   |   |  $ | 276,260 |   |
| _______________                                                                                                                           |   |    |             |   |   |   |   |   |   |
| (1) Consists of our revolving credit facility of $350 million and $15 million CAD from the credit facility of our Canada operations. |   |

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| Series          |   | Type                   |   | Total Available Capacity |      |   | Third Party Investor Available Capacity |   |      | Third Party Investor Outstanding |   | Interest Rate |      | Expected Maturity |
|-----------------|--------|------------------------|--------|--------------------------|-----------|--------|-----------------------------------------|--------|-----------|----------------------------------|--------|---------------|-----------|-------------------|
|            |   | (Dollars in Thousands) |
|            |   |                   |   |                     |      |   |                                    |   |      |                             |   |          |      |              |
| Series 2005-I   |   | Term                   |   | $                        | 140,000   |   |                                    | $      | 140,000   |                             |   | $             | 140,000   |              | Fixed |   | October 2010 |
| Series 2005-I   |   | Term                   |   |                     | 110,000   |   |                                    |   | 109,500   |                             |   |          | 109,500   |              | Floating |   | October 2010 |
| Series 2006-III |   | Term                   |   |                     | 250,000   |   |                                    |   | 250,000   |                             |   |          | 250,000   |              | Fixed |   | October 2011 |
| Series 2006-III |   | Term                   |   |                     | 250,000   |   |                                    |   | 250,000   |                             |   |          | 250,000   |              | Floating |   | October 2011 |
| Series 2008-I   |   | Term                   |   |                     | 461,500   |   |                                    |   | 461,500   |                             |   |          | 461,500   |              | Fixed (1) |   | December 2010 |
| Series 2008-I   |   | Term                   |   |                     | 38,500    |   |                                    |   | 38,500    |                             |   |          | 38,500    |              | Floating |   | December 2010 |
| Series 2008-IV  |   | Term                   |   |                     | 122,500   |   |                                    |   | 122,500   |                             |   |          | 122,500   |              | Fixed |   | September 2011 |
| Series 2008-IV  |   | Term                   |   |                     | 77,500    |   |                                    |   | 75,900    |                             |   |          | 75,900    |              | Floating |   | September 2011 |
| Series 2009-I   |   | Term                   |   |                     | 75,000    |   |                                    |   | -         |                             |   |          | -         |              | Fixed |   | March 2012 |
| Series 2009-I   |   | Term                   |   |                     | 425,000   |   |                                    |   | 425,000   |                             |   |          | 425,000   |              | Floating |   | March 2012 |
| Series 2010-I   |   | Term                   |   |                     | 255,000   |   |                                    |   | 255,000   |                             |   |          | 255,000   |              | Floating |   | January 2015 |
| Series 2010-I   |   | Term                   |   |                     | 45,000    |   |                                    |   | -         |                             |   |          | -         |              | Fixed |   | January 2015 |
| Total term      |   |                   |   |                     | 2,250,000 |   |                                    |   | 2,127,900 |                             |   |          | 2,127,900 |              |   |   |   |
|            |   |                   |   |                     |      |   |                                    |   |      |                             |   |          |      |              |   |   |   |
| Series 2006-I   |   | Variable Funding       |   |                     | 411,765   |   |                                    |   | 350,000   |                             |   |          | -         |              | Floating |   | September 2010 |
| Series 2008-III |   | Variable Funding       |   |                     | 260,115   |   |                                    |   | 225,000   |                             |   |          | -         |              | Floating |   | November 2011 |
| Total variable  |   |                   |   |                     | 671,880   |   |                                    |   | 575,000   |                             |   |          | -         |              |   |   |   |
| Total available |   |                   |   | $                        | 2,921,880 |   |                                    | $      | 2,702,900 |                             |   | $             | 2,127,900 |              |   |   |   |
|            |   |                   |   |                     |      |   |                                    |   |      |                             |   |          |      |              |   |   |   |

| (1) | The trust entered into an interest rate swap agreement to convert the floating rate notes with a notional amount of $229.85 million into a fixed rate obligation. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 3.  

|                                                                                   |   | July 3, |   |   | January 2, |   |   | June 27, |   |
|----------------------------------------------------------------------------------------|--------|---------|--------|--------|------------|--------|--------|----------|--------|
|                                                                                   |   | 2010    |   |   | 2010       |   |   | 2009     |   |
| As a percentage of total balances outstanding:                                         |   |    |   |   |       |   |   |     |   |
| Balances carrying an interest rate based upon various interest rate indices            |   |    | 66.3   | %      |       |   | 65.2   | %        |   |   | 67.0 | % |
| Balances carrying an interest rate of 9.99%                                            |   |    | 2.9    |   |       |   | 2.5    |     |   |   | 1.8 |   |
| Balances carrying a promotional interest rate of 0.00%                                 |   |    | 0.1    |   |       |   | 0.6    |     |   |   | 0.9 |   |
|                                                                                   |   |    |   |   |       |   |   |     |   |   |   |   |
| Balances not carrying interest because their previous month's balance was paid in full |   |    | 30.7   |   |       |   | 31.7   |     |   |   | 30.3 |   |
|                                                                                   |   |    | 100.0  | %      |       |   | 100.0  | %        |   |   | 100.0 | % |

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Item 4.   

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PART II – OTHER INFORMATION

Item 1.   

Item 1A.

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Item 2.  

Item 3.  

Item 4. 

Item 5.    

Item 6.  

| ExhibitNumber                                        | Description                                                                                                   |
|------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                 |                                                                                                          |
|  10.1        |  Form of 2010 Director Stock Option Agreement                                                            |
|                                                 |                                                                                                          |
|  31.1                                 |   Certification of CEO Pursuant to Rule 13a-14(a) under the Exchange Act                            |
|                                                 |                                                                                                          |
|  31.2                  |   Certification of CFO Pursuant to Rule 13a-14(a) under the Exchange Act                            |
|                                                 |                                                                                                          |
|  32.1                            |  Certifications Pursuant to 18 U.S.C. Section 1350          |

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SIGNATURES

|                            | CABELA'S INCORPORATED |
|---------------------------------|-----------------------|
|                            |                  |   |
|                            |                  |   |
|                            |                  |   |
| Dated:  July 30, 2010 | By:                   | /s/ Thomas L. Millner |
|                            |                  | Thomas L. Millner |
|                            |                  | President and Chief Executive Officer |
|                            |                  |   |
|                            |                  |   |
|                            |                  |   |
| Dated:  July 30, 2010 | By:                   | /s/ Ralph W. Castner |
|                            |                  | Ralph W. Castner |
|                            |                  | Executive Vice President and Chief Financial Officer |

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 Exhibit Index

| ExhibitNumber | Description                                                                  |
|---------------|------------------------------------------------------------------------------|
|          |                                                                         |
|  10.1    |  Form of 2010 Director Stock Option Agreement                           |
|          |                                                                         |
|  31.1    |  Certification of CEO Pursuant to Rule 13a-14(a) under the Exchange Act |
|          |                                                                         |
|  31.2    | Certification of CFO Pursuant to Rule 13a-14(a) under the Exchange Act       |
|          |                                                                         |
|  32.1    |  Certifications Pursuant to 18 U.S.C. Section 1350                      |

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