Dick’s Q1 Earnings Slide 4%; Comps Down 3.8%

Dick's Sporting Goods, Inc. reported net income decreased 4% to $20.8 million, or 18 cents a share, from $21.7 million, or 19 cents, a year ago. Results were at the upper end of guidance provided on March 11 calling for earnings between 16 to 19 cents a share. But the company warned that second-quarter and full-year results would come in below expectations.

“Throughout this difficult environment, we will continue to focus on the core athlete and outdoor enthusiast, while managing our business with our consistent focus on financial discipline and operational execution,” said Edward W. Stack, chairman, CEO and president.

For the second quarter, Dick's said it anticipates reporting consolidated earnings per diluted share ranging between 34 and 38 cents a share, as compared to earnings per diluted share for the second quarter 2007 of 41 cents. Comparable store sales, which include Dick's and Golf Galaxy stores, are expected to decrease approximately 4 – 7%. The comparable store sales calculation excludes the Chick's Sporting Goods stores. — The Company expects to open approximately ten new Dick's stores and one new Golf Galaxy store in the second quarter.

For the year, it currently anticipates reporting consolidated earnings per diluted share of approximately $1.22 – 1.36, as compared to earnings per diluted share for the full year 2007 of $1.33. Comparable store sales, which include Dick's Sporting Goods stores only, are expected to decrease approximately 3 – 5%. The comparable store sales calculation excludes the Golf Galaxy and Chick's Sporting Goods stores.

Regarding expansion plans for the year, the company expects to open approximately 44 new Dick's Sporting Goods stores, ten new Golf Galaxy stores and relocate one Dick's store in 2008. In the first quarter, the company opened eight Dick's Sporting Goods stores and four Golf Galaxy stores. The stores that opened in the first quarter are listed in a table later in the release under the heading “Store Count and Square Footage.”

 13 Weeks Ended

                                         ————————————-

                                          May 3,    % of     May 5,   % of

                                           2008     Sales     2007   Sales (1)

                                         ——–  ——-  ——–  ——–

    Net sales                            $912,112  100.00%  $823,553  100.00%

                                         ——–  ——-  ——–  ——–

    Cost of goods sold, including

     occupancy and distribution costs     653,006    71.59   579,134    70.32

                                         ——–  ——-  ——–  ——–

        GROSS PROFIT                      259,106    28.41   244,419    29.68

    Selling, general and administrative

     expenses                             219,964    24.12   198,007    24.04

    Pre-opening expenses                    4,924     0.54     7,121     0.86

                                         ——–  ——-  ——–  ——–

        INCOME FROM OPERATIONS             34,218     3.75    39,291     4.77
    Gain on sale of asset                  (2,356)   (0.26)        –        –

    Interest expense, net                   1,658     0.18     3,207     0.39

                                         ——–  ——-  ——–  ——–

        INCOME BEFORE INCOME TAXES         34,916     3.83    36,084     4.38
    Provision for income taxes             14,141     1.55    14,383     1.75

                                         ——–  ——-  ——–  ——–

        NET INCOME                        $20,775    2.28%   $21,701    2.64%

                                         ========  =======  ========  ========
    EARNINGS PER COMMON SHARE:

      Basic                                 $0.19              $0.20

      Diluted                               $0.18              $0.19