Dick's Sporting Goods, Inc. reported net income for the second quarter ended August 2, 2003 increased 32% to
$15.5 million, or $0.62 per diluted share, compared to $11.7 million or $0.61 per diluted share, respectively for the quarter ended August 3, 2002.

Earnings per share increased at a lower rate than net income due to an increase in shares resulting from the Company's IPO. Total sales for the quarter increased 14% to $353.5 million. Comparable store sales increased
1.5%.

Net income increased 31% and earnings per share increased 17% compared to pro-forma net income of $11.9 million or $0.53 per diluted share in the second
quarter of last year. Prior period pro-forma results include a reduction of interest expense and an increase in diluted shares as if the Company had consummated its initial public offering at the beginning of the second quarter last year rather than on the October 15, 2002 effective date.

The Company noted that the following were included in the second quarter results:

  • Net income included $0.4 million of after-tax expense relating to additional employer payroll taxes required as a result of the exercise of employee stock options.
  • Net income also included an after-tax gain of $0.7 million resulting from the sale of a portion of the Company's non-cash investment in its third party internet commerce provider.
  • Fully-diluted shares outstanding increased to 25.1 million, exceeding the previous guidance of 24.6 million, as a result of a higher stock price and the exercise of stock options.

Excluding these items, net income for the second quarter would have been $15.2 million or $0.60 per share, using 25.1 million fully-diluted shares outstanding.

Income from operations increased 23% to $25.1 million as compared to GAAP and pro-forma income from operations in the comparable period last year.

“While the environment for sales in the second quarter was impacted by poor weather throughout the majority of our markets, we were pleased to have been able to drive comp sales higher while increasing our gross margin rate,
which drove a 23% increase in operating income,” said Edward W. Stack, Chairman and CEO. “Additionally, our inventory is in good shape with inventory per square foot equal to last year after factoring in higher levels
of in transit private label inventory and inventory for stores opening in the third quarter.”

During the second quarter, the Company opened 2 new stores, one opening earlier than had been anticipated. The new stores are located in East Hanover, NJ (the fourth store in Northern New Jersey) and Portland, ME (the
first store in Maine). As of August 2, 2003, the Company operated 151 stores in 27 states.

Net income for the 26 weeks ended August 2, 2003 increased 34% to $22.1 million, or 6% to $0.90 per diluted share, compared to $16.4 million or $0.85 per diluted share, respectively for the 26 weeks ended August 3, 2002.
Total sales for the 26 weeks ended August 2, 2003 increased 12% to $658.2 million. Comparable store sales increased 0.4%.

Net income increased 32% and earnings per share increased 20% compared to pro-forma net income of $16.7 million or $0.75 per diluted share for the 26
weeks ended August 3, 2002. Prior period pro-forma results include a reduction of interest expense and an increase in diluted shares as if the Company had consummated its initial public offering at the beginning of the first quarter last year rather than on the October 15, 2002 effective date.

The Company's current outlook for the full year and third quarter of 2003 is based on current expectations and includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act as described later in this release. Although the Company believes that comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be
correct.

Based on an estimated 25.5 million fully-diluted shares outstanding, EPS for the third quarter is expected to be $0.15 – 0.17 per diluted share, a 15 – 31% increase over the prior year's third quarter pro-forma EPS of $0.13 (or an increase of 7 – 21% versus $0.14 per share on a GAAP basis).

Net income is expected to be $3.8 – 4.3 million, compared to last year's pro-forma net income of $2.9 million (or $2.8 million on a GAAP basis) in the third quarter, an increase of 31 – 48% (or an increase of 36 – 54% on a GAAP basis).

The Company expects to open ten stores during the third quarter, bringing the year to date total to 20 stores.

The Company updated the outlook for the full year as provided previously and based on an estimated 25.1 million fully-diluted shares outstanding, the Company reaffirmed it expects to report EPS for the full year of $1.95 per diluted share, compared to pro-forma EPS of $1.72 in the prior year (or $1.87 on a GAAP basis). This updated guidance represents a 0.5 million increase in fully-diluted outstanding shares and no change in EPS for the full year, as compared to earlier guidance.

Net income for the year is expected to be $49.0 million, compared to last year's pro-forma net income of $38.6 million (or $38.3 million on a GAAP basis), an increase of 27% (or an increase of 28% on a GAAP basis). This represents a $1 million increase in net income as compared to prior guidance with no change to EPS guidance due to the increased share count.

Comparable sales are expected to increase approximately 1-2%, based on actual results through the second quarter.
The Company expects to open 22 stores during the year, an increase of 2 stores over previous guidance.

                    DICK'S SPORTING GOODS, INC. AND SUBSIDIARY
             CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
                  (Dollars in thousands, except per share data)

                                                   GAAP           Pro-Forma
                                                                   13 Weeks
                                              13 Weeks Ended        Ended
                                          -----------------------  ----------
                                           August 2,    August 3,   August 3,
                                             2003         2002        2002
                                           ----------  ----------  ----------
    Net sales                               $353,521    $310,123    $310,123
                                           ----------  ----------  ----------
    Cost of goods sold, including
     occupancy and distribution costs        256,973     229,770     229,770

    GROSS PROFIT                              96,548      80,353      80,353

    Selling, general and                      70,284      58,956      58,956
     administrative expenses

    Pre-opening expenses                       1,162         977         977
                                           ----------  ----------  ----------
    INCOME FROM OPERATIONS                    25,102      20,420      20,420

    Gain on sale of investment                 1,212         -           -
    Interest expense, net                        535         886         668
                                           ----------  ----------  ----------

    INCOME  BEFORE INCOME                     25,779      19,534      19,752
     TAXES

    Provision for income taxes                10,312       7,814       7,901
                                           ----------  ----------  ----------
    NET INCOME                               $15,467     $11,720     $11,851
                                           ----------  ----------  ----------
                                           ----------  ----------  ----------
    EARNINGS PER COMMON SHARE:
      Basic                                    $0.69       $0.70       $0.60
      Diluted                                  $0.62       $0.61       $0.53