DICK'S Sporting Goods (DKS) 8-K Dick’s Sporting Goods Reports Second Quarter Results, Operating Income Increases 95% Over Prior Year Proforma

Exhibit 99.1

PRESS RELEASE

Dick’s Sporting Goods Reports Second Quarter Results, Operating Income Increases 95% Over Prior Year Proforma

PITTSBURGH, Pa., August 16, 2005 — Dick’s Sporting Goods, Inc. (NYSE: DKS) today reported sales and earnings results for the second quarter ended July 30, 2005, with earnings at the high end of guidance.

Second Quarter Results

The Company reported net income for the second quarter ended July 30, 2005, excluding merger integration and store closing costs and gain on sale of investment, of $24.2 million, or $0.45 per share, as compared to earnings guidance provided on May 17, 2005 of $0.43 - 0.45 per share excluding merger integration and store closing costs. This compares to GAAP net income and earnings per share of $17.9 million and $0.34, respectively, and proforma, combined company net income and earnings per share of $11.0 million and $0.21, respectively, for the second quarter ended July 31, 2004.

Including after-tax merger integration and store closing costs of $3.2 million, or $0.06 per share, and after-tax gain on sale of investment of $1.1 million, or $0.02 per share, the Company reported net income for the second quarter ended July 30, 2005 of $22.1 million, or $0.41 per share as compared to earnings guidance of $0.37 - $0.39 per share including merger integration and store closing costs.

Total sales for the quarter increased 50% over last year to $622.0 million due to a comparable store sales increase of 0.5%, the opening of new stores, and the inclusion of the former Galyan’s operations in this year’s quarterly results for the full 13 weeks. The former Galyan’s stores will be included in the comparable store base beginning in the second quarter of fiscal 2006.

During the second quarter, the Company opened three stores and relocated one store. The stores that opened in the second quarter include: Toledo, OH, Greenville, SC and Pittsburgh, PA. One of the three new stores was the two-level prototype (Toledo, OH). The relocated store was in Dayton, OH.

As of July 30, 2005, the Company operated 239 stores, with approximately 13.8 million square feet, in 34 states.

“We are pleased to report results at the high end of our earnings guidance. We continued to execute in the second quarter, increasing operating income by 95% over last year’s proforma results. Inventory was effectively managed with inventory per square foot decreasing by 3% over last year,” said Edward W. Stack, Chairman & CEO.

Year-to-Date Results

Net income for the 26 weeks ended July 30, 2005, excluding merger integration and store closing costs and gain on sale of investment, was $36.3 million, or $0.67 per share. Including after-tax merger integration and store closing costs of $22.7 million, or $0.42 per share, and after-tax gain on sale of investment of $1.1 million, or $0.02 per share, the Company reported net income for the 26 weeks ended July 30, 2005 of $14.8 million, or $0.27 per share. This compares to GAAP net income and earnings per

share of $28.5 million and $0.54, respectively, and proforma, combined company net income and earnings per share of $16.1 million and $0.31, respectively, for the 26 weeks ended July 31, 2004.

Total sales for the 26 weeks ended July 30, 2005 increased 53% over last year to $1,192.8. Comparable store sales increased 1.7%.

Galyan’s Conversion

The conversion, re-merchandising, and grand re-opening of the former Galyan’s stores to Dick’s stores was completed in the first quarter of 2005. Since the conversion is completed, the former Galyan’s stores will be included in the comp store sales base beginning in the second quarter of fiscal 2006.

The Company closed the final store due to the acquisition in the second quarter of 2005.

The Company is lowering expected total merger integration and store closing costs from $70 million to $65 million, of which $37.8 million was incurred in the first two quarters of 2005, and $20.3 million in 2004. The balance of the costs, which relate to future lease payments on closed stores, will be incurred in 2006 and beyond. Merger integration and store closing costs primarily include the expense of closing Dick’s stores, advertising the re-branding of Galyan’s stores, recruiting, system conversion costs, and duplicative costs such as corporate occupancy.

2005 Outlook

The Company’s current outlook for 2005 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.

Full Year 2005

•	Earnings guidance is being revised to $1.70 - 1.75 per share which is the original guidance provided in the June 21, 2004 press release announcing the Galyan’s acquisition, versus our most recent guidance of $1.82 - 1.87. This represents an approximate 48% increase over proforma, combined company earnings per share for the full year 2004 of $1.17, excluding merger integration and store closing costs and gain on sale of investment. Including merger integration and store closing costs, earnings guidance is $1.27 - 1.32 per share. Guidance is based on an estimated 55 million shares outstanding.
	Guidance is being revised due to a sales shortfall to our plan in the former Galyan’s stores. The stores are behaving more similar to a new Dick’s store in a new market, when we had anticipated they would outperform a new Dick’s store. Key business categories, such as golf and athletic footwear have increased substantially over historic Galyan’s levels, but have performed below our plan. Our ad support for the former Galyan’s stores has not been as aggressive as in the Dick’s stores, which contributed to the sales shortfall while providing expense savings. The advertising frequency has been less than the traditional Dick’s program, which will change in the third quarter, and it will be identical to the standard program in the fourth quarter.
•	Comparable store sales are expected to increase approximately 2%. The converted Galyan’s stores will be included in the comparable store base in the second quarter of fiscal 2006, as the re-branding and re-merchandising effort of all converted Galyan’s stores has been completed as of the end of the first quarter 2005.
•	The Company now expects to open 26 new stores in 2005. As of the end of the second quarter, the Company closed six stores (five Dick’s stores and one Galyan’s store) due to overlap, completing that aspect of the conversion.
•	Our 2005 full-year EPS guidance excludes the impact of expensing stock options as the SEC has amended the compliance date for SFAS 123R. We are planning to implement the provisions of SFAS 123R beginning in fiscal 2006.

Third Quarter 2005

• Based on an estimated 55 million shares outstanding, the Company anticipates EPS for the third quarter of $0.06 - $0.08 per share. This compares to the third quarter 2004 GAAP net loss per share of $(0.04), or earnings per share of $0.05, excluding merger integration and store closing costs.

• Comparable store sales are expected to increase approximately 1-2%.

• The Company expects to open 16 new stores and relocate two stores in the third quarter.

Conference Call Info

The Company will be hosting a conference call today at 10:00 am Eastern time to discuss the second quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company’s web site located at http://www.dickssportinggoods.com/investors. To listen to the live call, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software.

For those who cannot listen to the live broadcast, the webcast will be archived on the Company’s web site for approximately 30 days. In addition, a dial-in replay will be available shortly after the call. To listen, investors should dial (888) 286-8010 (domestic callers) or (617) 801-6888 (international callers) and enter confirmation code 28548981. The dial-in replay will be available for 30 days following the live call.

Forward Looking Statements and Merger Integration and Store Closing Cost Estimates

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “guidance,” “estimate,” “intend,” “predict,” and “continue” or similar words. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the year ended January 29, 2005 as filed with the Securities and Exchange Commission on March 31, 2005, ones associated with combining businesses and achieving expected savings and synergies (including annualized cost savings and merchandise buying improvements) and/or with assimilating acquired companies and ones associated with the fact that merger integration and store closing costs related to the Galyan’s acquisition are difficult to predict with a level of certainty and may be greater than expected. The Company disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

About Dick’s Sporting Goods, Inc.

Pittsburgh-based Dick’s Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of July 30, 2005 the Company operated 239 stores in 34 states primarily throughout the Eastern half of the U.S.

Dick’s Sporting Goods, Inc. news releases are available at http://www.dickssportinggoods.com/ (click on the Investor Relations link at the bottom of the home page).

Contact:

Michael F. Hines, EVP — Chief Financial Officer or
Dennis Magulick, Director, Investor Relations
724-273-3400
investors@dcsg.com

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
(Dollars in thousands, except per share data)

	13 Weeks Ended					26 Weeks Ended
	July 30,			July 31,		July 30,			July 31,
	2005			2004		2005			2004
Net sales	$	621,972		$	416,135	$	1,192,815		$	780,342
Cost of goods sold, including occupancy and distribution costs		447,556			296,971		866,427			558,420
GROSS PROFIT		174,416			119,164		326,388			221,922
Selling, general and administrative expenses		129,449			85,864		255,718			168,031
Pre-opening expenses		1,592			2,443		4,237			5,712
Merger integration and store closing costs		5,309			52		37,790			52
INCOME FROM OPERATIONS		38,066			30,805		28,643			48,127
Gain on sale of investment		(1,844	)		—		(1,844	)		—
Interest expense, net		3,079			959		5,875			1,601
Other income		—			—		—			(1,000	)
INCOME BEFORE INCOME TAXES		36,831			29,846		24,612			47,526
Provision for income taxes		14,733			11,938		9,845			19,010
NET INCOME	$	22,098		$	17,908	$	14,767		$	28,516
EARNINGS PER COMMON SHARE:
Basic	$	0.44		$	0.38	$	0.30		$	0.60
Diluted	$	0.41		$	0.34	$	0.27		$	0.54
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		49,750			47,693		49,418			47,503
Diluted		54,115			52,627		53,902			52,506

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(Dollars in thousands)

	July 30,		July 31,		January 29,
	2005		2004		2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	29,921	$	37,964	$	18,886
Accounts receivable, net		41,154		37,407		30,611
Income taxes receivable		18,139		—		7,202
Inventories, net		536,820		489,401		457,618
Prepaid expenses and other current assets		12,837		18,855		8,772
Investments		—		20,000		—
Deferred income taxes		5,344		34,965		7,966
Total current assets		644,215		638,592		531,055
Property and equipment, net		351,936		332,771		349,098
Construction in progress — leased facilities		20,695		10,492		15,233
Goodwill		156,252		159,398		157,245
Other assets		38,736		26,904		32,417
TOTAL ASSETS	$	1,211,834	$	1,168,157	$	1,085,048
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	272,858	$	286,974	$	211,685
Accrued expenses		119,217		136,189		141,465
Deferred revenue and other liabilities		39,099		36,837		48,882
Income taxes payable		—		1,570		—
Current portion of other long-term debt and capital leases		560		603		635
Total current liabilities		431,734		462,173		402,667
LONG-TERM LIABILITIES:
Senior convertible notes		172,500		172,500		172,500
Revolving credit borrowings		121,206		159,657		76,094
Other long-term debt and capital leases		8,427		14,886		8,775
Non-cash obligations for construction in progress — leased facilities		20,695		10,492		15,233
Deferred income taxes		—		5,168		—
Deferred revenue and other liabilities		105,600		83,953		96,112
Total long-term liabilities		428,428		446,656		368,714
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY:
Preferred stock		—		—		—
Common stock		362		339		348
Class B common stock		139		141		140
Additional paid-in capital		204,458		166,214		181,321
Retained earnings		144,629		89,473		129,862
Accumulated other comprehensive income		2,084		3,161		1,996
Total stockholders’ equity		351,672		259,328		313,667
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,211,834	$	1,168,157	$	1,085,048

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(Dollars in thousands)

	26 Weeks Ended
	July 30,			July 31,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	14,767		$	28,516
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		24,324			8,493
Deferred income taxes		(2,738	)		(769	)
Tax benefit from exercise of stock options		13,452			6,074
Gain on sale of non-cash investment		(1,844	)		—
Other non-cash items		1,216			—
Changes in assets and liabilities:
Accounts receivable		(13,146	)		(12,640	)
Inventories		(78,994	)		(81,808	)
Prepaid expenses and other assets		(3,237	)		(4,312	)
Accounts payable		47,094			56,322
Accrued expenses		(5,727	)		(2,915	)
Income taxes payable		—			3,199
Deferred construction allowances		1,594			13,982
Deferred revenue and other liabilities		3,379			(9,856	)
Net cash provided by operating activities		140			4,286
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(69,521	)		(40,644	)
Proceeds from sale-leaseback transactions		12,262			20,835
Payment for the purchase of Galyan’s, net of $17,931 cash acquired		—			(347,091	)
Purchase of held-to-maturity securities		—			(57,942	)
Proceeds from sale of held-to-maturity securities		—			37,942
Increase in recoverable costs from developed properties		(2,007	)		(447	)
Proceeds from sale of non-cash investment		1,922			—
Net cash used in investing activities		(57,344	)		(387,347	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible notes		—			172,500
Revolving credit borrowings, net		45,112			159,657
Payments on other long-term debt and capital leases		(274	)		(249	)
Payment for purchase of bond hedge		—			(33,120	)
Proceeds from issuance of warrant		—			12,420
Transaction costs for convertible notes		—			(5,786	)
Proceeds from sale of common stock under employee stock purchase plan		2,135			1,763
Proceeds from exercise of stock options		6,347			2,122
Increase in bank overdraft		14,919			18,044
Net cash provided by financing activities		68,239			327,351
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		11,035			(55,710	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		18,886			93,674
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	29,921		$	37,964
Supplemental non-cash investing and financing activities:
Construction in progress — leased facilities	$	5,462		$	(435	)
Accrued property and equipment	$	(14,203	)	$	—

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
(In thousands, except per share data)

										Proforma (1)
	13 Weeks Ended									13 Weeks Ended
	July 30, 2005									July 31, 2004
				Merger			Results excluding
				Integration and			Merger
				Store Closing			Integration and			Dick’s		Galyan’s
	GAAP			Costs and			Store Closing Costs			Sporting		Trading
	Results			Investment Gain			and Investment Gain			Goods, Inc.		Company, Inc.			Consolidated
Net sales	$	621,972		$	—		$	621,972		$	409,298	$	189,118		$	598,416
Cost of goods sold, including occupancy and distribution costs		447,556			—			447,556			291,553		145,252			436,805
GROSS PROFIT		174,416			—			174,416			117,745		43,866			161,611
% to sales								28.04	%							27.01	%
Selling, general and administrative expenses		129,449			—			129,449			84,702		51,663			136,365
Pre-opening expenses		1,592			—			1,592			2,397		542			2,939
Merger integration and store closing costs		5,309			(5,309	)		—			52		—			52
INCOME (LOSS) FROM OPERATIONS		38,066			5,309			43,375			30,594		(8,339	)		22,255
% to sales								6.97	%							3.72	%
Gain on sale of investment		(1,844	)		1,844			—			—		—			—
Interest expense, net		3,079			—			3,079			959		2,933			3,892
Other income		—			—			—			—		—			—
INCOME (LOSS) BEFORE INCOME TAXES		36,831			3,465			40,296			29,635		(11,272	)		18,363
Provision (benefit) for income taxes		14,733			1,386			16,119			11,854		(4,509	)		7,345
NET INCOME	$	22,098		$	2,079		$	24,177		$	17,781	$	(6,763	)	$	11,018
EARNINGS PER COMMON SHARE:
Basic	$	0.44					$	0.49		$	0.37				$	0.23
Diluted	$	0.41					$	0.45		$	0.34				$	0.21
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		49,750						49,750			47,693					47,693
Diluted		54,115						54,115			52,627					52,627

(1) The unaudited proforma results present information as if Galyan’s had been acquired at the beginning of each period presented. The proforma amounts include certain reclassifications to Galyan’s amounts to conform them to the Company’s presentation, and an increase in pre-tax interest expense of $2.0 million, to reflect the increase in borrowings under the amended credit facility to finance the acquisition as if it had occurred at the beginning of each period presented. The proforma amounts do not reflect any benefits from economies which might be achieved from combining the operations. The proforma information does not necessarily reflect the actual results that would have occurred had the companies been combined during the periods presented, nor is it necessarily indicative of the future results of operations of the combined companies.

DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
(In thousands, except per share data)

										Proforma (1)
	26 Weeks Ended									26 Weeks Ended
	July 30, 2005									July 31, 2004
				Merger			Results excluding
				Integration and			Merger
				Store Closing			Integration and			Dick's			Galyan's
	GAAP			Costs and			Store Closing Costs			Sporting			Trading
	Results			Investment Gain			and Investment Gain			Goods, Inc.			Company, Inc.			Consolidated
Net sales	$	1,192,815		$	—		$	1,192,815		$	773,505		$	346,080		$	1,119,585
Cost of goods sold, including occupancy and distribution costs		866,427			—			866,427			553,002			265,774			818,776
GROSS PROFIT		326,388			—			326,388			220,503			80,306			300,809
% to sales								27.36	%								26.87	%
Selling, general and administrative expenses		255,718			—			255,718			166,869			92,763			259,632
Pre-opening expenses		4,237			—			4,237			5,666			2,323			7,989
Merger integration and store closing costs		37,790			(37,790	)		—			52			—			52
INCOME (LOSS) FROM OPERATIONS		28,643			37,790			66,433			47,916			(14,780	)		33,136
% to sales								5.57	%								2.96	%
Gain on sale of investment		(1,844	)		1,844			—			—			—			—
Interest expense, net		5,875			—			5,875			1,601			5,764			7,365
Other income		—			—			—			(1,000	)		—			(1,000	)
INCOME (LOSS) BEFORE INCOME TAXES		24,612			35,946			60,558			47,315			(20,544	)		26,771
Provision (benefit) for income taxes		9,845			14,378			24,223			18,926			(8,218	)		10,708
NET INCOME	$	14,767		$	21,568		$	36,335		$	28,389		$	(12,326	)	$	16,063
EARNINGS PER COMMON SHARE:
Basic	$	0.30					$	0.74		$	0.60					$	0.34
Diluted	$	0.27					$	0.67		$	0.54					$	0.31
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		49,418						49,418			47,503						47,503
Diluted		53,902						53,902			52,506						52,506

(1) The unaudited proforma results present information as if Galyan’s had been acquired at the beginning of each period presented. The proforma amounts include certain reclassifications to Galyan’s amounts to conform them to the Company’s presentation, and an increase in pre-tax interest expense of $3.9 million, to reflect the increase in borrowings under the amended credit facility to finance the acquisition as if it had occurred at the beginning of each period presented. The proforma amounts do not reflect any benefits from economies which might be achieved from combining the operations. The proforma information does not necessarily reflect the actual results that would have occurred had the companies been combined during the periods presented, nor is it necessarily indicative of the future results of operations of the combined companies.

The following represents a reconciliation of beginning and ending stores and square footage for the periods indicated.

	Fiscal 2005						YTD Q2 Fiscal 2004
	Q1		Q2		Total		Dick's		Galyan's		Total
Beginning stores		234		236		234		163		43		206
New		7		3		10		10		5		15
Closed		5		—		5		—		—		—
Ending stores		236		239		239		173		48		221

Square Footage:
(in millions)

	Dick's		Galyan's		Total
Q2 2003		7.3		3.3		10.6
Q3 2003		7.9		3.8		11.7
Q4 2003		7.9		3.8		11.7
Q1 2004		8.3		4.1		12.4
Q2 2004		8.5		4.2		12.7
Q3 2004		9.2		4.2		13.4
Q4 2004		9.4		4.1		13.5
Q1 2005						13.6
Q2 2005						13.8

Regulation G Reconciliations

The following table sets forth the calculation of EBITDA, which is non-GAAP financial information, and reconciles EBITDA to the most directly comparable GAAP information. EBITDA for the 13 weeks ended July 30, 2005 and July 31, 2004 was $51.5 million and $35.0 million, respectively. EBITDA for the 13 weeks ended July 30, 2005, excluding merger integration and store closing costs related to the acquisition of Galyan’s on July 29, 2004, and the gain on sale of investment, was $54.8 million. Proforma EBITDA for the 13 weeks ended July 31, 2004, including Galyan’s as if the acquisition had occurred at the beginning of the period was $34.1 million.

EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles measure of performance or liquidity. EBITDA, as the Company has calculated it, may not be comparable to similarly titled measures reported by other companies. EBITDA is a key metric used by the Company that provides a measurement of profitability that eliminates the effect of changes resulting from financing decisions, tax regulations, and capital investments.

EBITDA¹
(in thousands)

			Add:					Results excluding
			Merger			Less:		merger integration
	13 Weeks Ended		integration and			Gain on sale		and store closing
	July 30, 2005		store closing costs			of investment		costs
Net income	$	22,098	$	3,185		$	1,106	$	24,177
Provision for income taxes		14,733		2,124			738		16,119
Interest expense, net		3,079		—			—		3,079
Depreciation and amortization		11,545		(149	)		—		11,396
EBITDA	$	51,455	$	5,160		$	1,844	$	54,771

	GAAP
	13 Weeks Ended
	July 31, 2004
Net income	$	17,908
Provision for income taxes		11,938
Interest expense, net		959
Depreciation and amortization		4,197
EBITDA	$	35,002

/ 1 Presents EBITDA adjusted for merger integration and store closing costs.

EBITDA (Proforma)²

			Add:
	Dick's		Galyan's			Proforma
	13 Weeks Ended		13 Weeks Ended			13 Weeks Ended
	July 31, 2004		July 31, 2004			July 31, 2004
Net income (loss)	$	17,781	$	(6,763	)	$	11,018
Provision (benefit) for income taxes		11,854		(4,509	)		7,345
Interest expense, net		959		2,933			3,892
Depreciation and amortization		4,197		7,623			11,820
EBITDA	$	34,791	$	(716	)	$	34,075

/ 2 Proforma EBITDA for the 13 week ended July 31, 2004 include the operations of Galyan’s as if it had been acquired at the beginning of the period. The proforma amounts include an increase in interest expense to reflect the increase in borrowings under the amended credit facility to finance the acquisition as if it had occurred at the beginning of the period.

Adjusted net income and earnings per share reconciliation

The Company believes the use of adjusted net income, and adjusted earnings per share for the periods below provides a further understanding due to the merger integration and store closing costs incurred during the current year related to the acquisition of Galyan’s on July 29, 2004 and the gain on sale of investment. The reconciliation of adjusted net income, and adjusted earnings per share to the most directly comparable GAAP financial information is presented below. (in thousands, except per share data):

							Proforma 1
	52 Weeks Ended						52 Weeks Ended
	January 29, 2005						January 29, 2005
				Per						Per
	Amounts			Share			Amounts			Share
Reported net income (GAAP)	$	68,905		$	1.30		$	68,905		$	1.30
Add: Merger integration and store closing costs, after tax		12,202			0.23			12,202			0.23
Less: Gain on sale of investment, after tax		(6,589	)		(0.12	)		(6,589	)		(0.12	)
Less: Galyan’s net loss		—			—			(12,453	)		(0.24	)
Adjusted net income	$	74,518		$	1.41		$	62,065		$	1.17

1 Proforma includes the operations of Galyan’s as if it had been acquired at the beginning of fiscal 2004.

EPS Guidance

The EPS guidance for fiscal 2005 excludes merger integration and store closing costs. The following table sets forth a reconciliation of guidance net income per share to adjusted net income per share excluding merger integration and store closing costs, after tax:

	52 Weeks Ended
	January 28, 2006
Guidance net income per share	$	1.27 - 1.32
Guidance merger integration and store closing costs per share		0.43
Guidance adjusted net income per share excluding
merger integration and store closing costs	$	1.70 - 1.75