Dick's Sporting Goods, Inc. expects to record a pre-tax non-cash impairment charge based upon unaudited, preliminary year-end estimates in the range of approximately $165 million to $180 million that will decrease net income by $144 million to $153 million, or approximately $1.29 to $1.37 per diluted share in fiscal 2008.


 

Dicks’ estimated pre-tax non-cash impairment charge consists of approximately $140 million to $150 million for goodwill and other intangible assets acquired as part of the Golf Galaxy acquisition in February 2007 and approximately $25 million to $30 million for the write-down of Golf Galaxy, Dick's Sporting Goods, and Chick's Sporting Goods store assets.

 

Comparable store sales for the fourth quarter decreased approximately 8.6%, within the expected range previously estimated by the company on Nov. 20, 2008 of a decline of approximately 10% to 6% for the period.

The comparable store sales calculation for the fourth quarter includes Golf Galaxy stores and excludes the Chick's Sporting Goods stores.
Comparable store sales for the full year, which include Dick's Sporting Goods stores only, decreased approximately 4.8% compared to estimates given on Nov. 20, 2008 of a decline of approximately 5 to 4%.

Excluding the asset impairment charge described above, the company anticipates that fourth quarter 2008 consolidated earnings per diluted share will be at least at the midpoint of its previously-announced estimated range of 49 cents to 56 cents per diluted share excluding costs from the Golf Galaxy and Chick's Sporting Goods integration, or 47 cents to 54 cents per diluted share including the Golf Galaxy and Chick's Sporting Goods integration costs.