DICK'S Sporting Goods (DKS) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRESS RELEASE

Dick’s Sporting Goods Reports Second Quarter Results:

• EPS Increases 77% over Last Year to $0.83

• Comparable Store Sales Increase 7.2%

• Increases Full Year Guidance

PITTSBURGH, Pa., August 21, 2007 — Dick’s Sporting Goods, Inc. (NYSE: DKS) today reported sales and earnings results for the second quarter ended August 4, 2007. The results include the operating results of Golf Galaxy for 2007 from the acquisition date, but not for 2006 as Golf Galaxy was acquired on February 13, 2007.

Second Quarter Results

Net income increased 87% to $47.9 million and earnings per diluted share increased 77% to $0.83, compared to prior year net income of $25.7 million, or $0.47 per diluted share. Earnings guidance provided on May 23, 2007 was for earnings per diluted share of $0.74 — 0.77. The operating results of Golf Galaxy are included in the current period results.

Net sales for the quarter increased 38% to $1,013.4 million due to a comparable store sales increase of 7.2% (or 5.8% adjusting for the shifted retail calendar, compared to a 6.5% increase in Q2 last year), the opening of new stores, and the inclusion of Golf Galaxy in this year’s quarterly results (which will be included in Dick’s Sporting Goods comparable store sales calculation beginning in Q2 2008). Comparable store sales for Golf Galaxy on a proforma basis increased 4.7%, or 5.5% after adjusting for the shifted retail calendar.

“The Dick’s Sporting Goods portfolio of businesses produced an outstanding second quarter. We achieved increased sales not only in golf but across most of our businesses, delivered gross margin improvements, provided operating expense leverage and solid inventory management. In addition, Golf Galaxy delivered strong sales and earnings in their seasonally largest quarter. I would like to commend all of our team members for their efforts in driving the results for our second quarter,” said Edward W. Stack, Chairman and CEO.

New Stores

In the second quarter, the Company opened six Dick’s Sporting Goods stores and two Golf Galaxy stores. The stores that opened in the second quarter are listed in a table later in the release under the heading “Store Count and Square Footage”.

Year-to-Date Results

Net income for the 26 weeks ended August 4, 2007 increased 88% to $69.6 million and earnings per diluted share increased 78% to $1.21, as compared to prior year net income of $37.1 million, or $0.68 per diluted share. The operating results of Golf Galaxy have been included in the results beginning with the February 13, 2007 date of acquisition.

Net sales increased 33% to $1,837.0 million due to a comparable store sales increase of 4.7% (or 3.1% adjusting for the shifted retail calendar, compared to a 6.9% increase year-to-date last year), the opening of new stores, and the inclusion of Golf Galaxy in this year’s results. Comparable store sales for Golf Galaxy on a proforma basis increased 4.7%, or 3.0% after adjusting for the shifted retail calendar.

Current 2007 Outlook

The Company’s current outlook for 2007 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 2007 — (52-Week Year) Comparisons to Fiscal 2006 — (53-Week Year)

• We are currently increasing earnings guidance for the full year. Based on an estimated 58 million shares outstanding, the Company is increasing its consolidated earnings per diluted share guidance from the previous estimate of $2.37 — 2.40 to the new estimate of approximately $2.47 — 2.50. This new range represents an approximate 23% increase over earnings per diluted share for the full year 2006 of $2.03 and includes the expected results of Golf Galaxy, which we continue to expect to be approximately $0.02 per diluted share accretive for the year.

• Comparable store sales for Dick’s Sporting Goods stores are expected to increase approximately 2% compared to a 6.0% increase last year.

• The Company expects to open 45 new Dick’s Sporting Goods stores, 16 new Golf Galaxy stores and relocate one Dick’s Sporting Goods store in 2007 .

• Third Quarter 2007

• Based on an estimated 59 million diluted shares outstanding, the Company anticipates consolidated earnings per diluted share of approximately $0.09 — 0.12, as compared to $0.14 in 2006. The year-over-year comparison is impacted by several factors, including the shift in the 2007 retail calendar, which positively impacted Q1 and Q2 this year and is offset in Q3 and Q4. Further, the inclusion of Golf Galaxy is approximately $0.02 per share dilutive in the third quarter.

• Comparable store sales for Dick’s Sporting Goods stores are expected to decrease approximately 1 — 3%, or be approximately flat to down 2%, adjusting for the shifted retail calendar which compares to a 8.9% increase in Q3 last year. Golf Galaxy will be included in the quarterly comparable store base beginning in Q2 2008, which will be the first full quarter following the anniversary of the date of acquisition.

• The Company expects to open 24 new Dick’s Sporting Goods stores and one new Golf Galaxy store.

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 athttp://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 68541751. The dial-in replay will be available for 30 days following the live call.

Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

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 Amendment No. 1 to Form 10-K/A for the year ended February 3, 2007 as filed with the Securities and Exchange Commission on June 5, 2007. The Company disclaims any obligation and does not intend to update any forward-looking statements except as may be required by the securities laws.

Company Convertible Notes

The Company’s stock price has triggered an optional conversion right with respect to the Company’s Senior Convertible Notes due 2024, which if exercised will not currently have any dilutive effect on the Company’s outstanding shares, but may cause a dilutive effect if exercised in the future. We do not anticipate that the outstanding notes will be exercised under this optional right. This disclosure constitutes any notice required to be given by the Company under its Indenture dated as of February 18, 2004 with respect to the Company’s Senior Convertible Notes due 2024.

About Dick’s Sporting Goods, Inc.

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 August 4, 2007, the Company operated 315 stores in 34 states primarily throughout the eastern half of the U.S. The Company also owns Golf Galaxy, a multi-channel golf specialty retailer, with 77 stores in 29 states, ecommerce websites and catalog operations.

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

Contact:

Timothy E. Kullman, SVP — Chief Financial Officer or
Dennis Magulick, Director, Investor Relations
724-273-3400
investors@dcsg.com

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

	13 Weeks Ended
	August 4,		% of			July 29,		% of
	2007		Sales			2006		Sales
Net sales	$	1,013,421		100.00	%	$	734,047		100.00	%
Cost of goods sold, including occupancy and distribution costs		714,761		70.53			526,650		71.75
GROSS PROFIT		298,660		29.47			207,397		28.25
Selling, general and administrative expenses		212,747		20.99			159,239		21.69
Pre-opening expenses		2,719		0.27			2,451		0.33
INCOME FROM OPERATIONS		83,194		8.21			45,707		6.23
Interest expense, net		3,629		0.36			2,906		0.40
INCOME BEFORE INCOME TAXES		79,565		7.85			42,801		5.83
Provision for income taxes		31,635		3.12			17,120		2.33
NET INCOME	$	47,930		4.73	%	$	25,681		3.50	%
EARNINGS PER COMMON SHARE:
Basic	$	0.88				$	0.51
Diluted	$	0.83				$	0.47
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		54,290					50,746
Diluted		57,764					54,887

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

	26 Weeks Ended
	August 4,		% of			July 29,		% of
	2007		Sales (1)			2006		Sales (1)
Net sales	$	1,836,975		100.00	%	$	1,379,545		100.00	%
Cost of goods sold, including occupancy and distribution costs		1,293,896		70.44			994,482		72.09
GROSS PROFIT		543,079		29.56			385,063		27.91
Selling, general and administrative expenses		410,755		22.36			311,474		22.58
Pre-opening expenses		9,840		0.54			6,604		0.48
INCOME FROM OPERATIONS		122,484		6.67			66,985		4.86
Interest expense, net		6,835		0.37			5,155		0.37
INCOME BEFORE INCOME TAXES		115,649		6.30			61,830		4.48
Provision for income taxes		46,017		2.51			24,732		1.79
NET INCOME	$	69,632		3.79	%	$	37,098		2.69	%
EARNINGS PER COMMON SHARE:
Basic	$	1.29				$	0.73
Diluted	$	1.21				$	0.68
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		53,920					50,583
Diluted		57,493					54,742

(1) Column does not add due to rounding

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

	August 4,		July 29,		February 3,
	2007		2006		2007
	(unaudited)		(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	50,489	$	32,926	$	135,942
Accounts receivable, net		62,514		53,091		39,687
Income taxes receivable		—		—		15,671
Inventories, net		791,654		636,839		641,464
Prepaid expenses and other current assets		41,811		18,133		37,015
Deferred income taxes		1,079		3,954		—
Total current assets		947,547		744,943		869,779
Property and equipment, net		499,109		392,412		433,071
Construction in progress - leased facilities		7,681		11,254		13,087
Goodwill		320,156		156,628		156,628
Other assets		71,658		47,900		51,700
TOTAL ASSETS	$	1,846,151	$	1,353,137	$	1,524,265
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	357,184	$	296,221	$	286,668
Accrued expenses		208,061		166,756		190,365
Deferred revenue and other liabilities		74,631		51,325		87,798
Income taxes payable		2,717		4,940		—
Current portion of other long-term debt and capital leases		152		141		152
Total current liabilities		642,745		519,383		564,983
LONG-TERM LIABILITIES:
Senior convertible notes		172,500		172,500		172,500
Revolving credit borrowings		52,307		41,430		—
Other long-term debt and capital leases		8,320		8,444		8,365
Non-cash obligations for construction in progress — leased facilities		7,681		11,254		13,087
Deferred revenue and other liabilities		187,994		121,695		144,780
Total long-term liabilities		428,802		355,323		338,732
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY:
Common stock		419		373		397
Class B common stock		133		136		134
Additional paid-in capital		387,977		236,620		302,766
Retained earnings		383,570		239,940		315,453
Accumulated other comprehensive income		2,505		1,362		1,800
Total stockholders’ equity		774,604		478,431		620,550
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,846,151	$	1,353,137	$	1,524,265

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

	26 Weeks Ended
	August 4,			July 29,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	69,632		$	37,098
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		38,036			26,246
Deferred income taxes		(10,391	)		(10,419	)
Stock-based compensation		14,781			12,525
Excess tax benefit from stock-based compensation		(30,592	)		(4,419	)
Tax benefit from exercise of stock options		3,745			609
Other non-cash items		1,370			1,288
Changes in assets and liabilities:
Accounts receivable		(12,056	)		(5,179	)
Inventories		(79,217	)		(101,141	)
Prepaid expenses and other assets		(2,550	)		(9,024	)
Accounts payable		57,967			49,135
Accrued expenses		1,527			15,015
Income taxes payable / receivable		46,551			(8,196	)
Deferred construction allowances		22,593			4,967
Deferred revenue and other liabilities		(8,460	)		(6,485	)
Net cash provided by operating activities		112,936			2,020
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(76,884	)		(63,712	)
Proceeds from sale-leaseback transactions		9,226			4,583
Payment for purchase of Golf Galaxy, net of $4,859 cash acquired		(221,461	)		—
Net cash used in investing activities		(289,119	)		(59,129	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings, net		52,307			41,430
Payments on other long-term debt and capital leases		(97	)		(116	)
Construction allowance receipts		2,699			5,799
Proceeds from sale of common stock under employee stock purchase plan		2,466			2,098
Proceeds from exercise of stock options		24,712			6,150
Excess tax benefit from stock-based compensation		30,592			4,419
Decrease in bank overdraft		(22,013	)		(6,309	)
Net cash provided by financing activities		90,666			53,471
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		64			—
NET DECREASE IN CASH AND CASH EQUIVALENTS		(85,453	)		(3,638	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		135,942			36,564
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	50,489		$	32,926
Supplemental non-cash investing and financing activities:
Construction in progress — leased facilities	$	(5,406	)	$	3,916
Accrued property and equipment	$	1,027		$	15,223
Cash paid for interest	$	7,509		$	4,551
Cash paid for income taxes	$	5,426		$	42,083

Store Count and Square Footage

The stores that opened during the second quarter of 2007 are as follows:

DICK’S SPORTING GOODS		GOLF GALAXY
Store	Market	Store	Market
Lake Grove, NY	Long Island	Sacramento, CA	Sacramento
Concord, NC	Charlotte	San Diego, CA	San Diego
Millville, NJ	Jersey South
Flower Mound, TX	Dallas
Oswego, IL	Chicago
Murfreesboro, TN	Nashville

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

	Q2 YTD
					Fiscal		Fiscal
					2007		2006
	Dick’s						Dick’s
	Sporting						Sporting
	Goods		Golf Galaxy		Total		Goods
Beginning stores		294		65		359		255
Q1 New		15		10		25		8
Q2 New		6		2		8		5
Ending stores		315		77		392		268
Relocated stores		1		—		1		—

Square Footage:
(in millions)

	Dick’s
	Sporting
	Goods		Golf Galaxy		Total
Q1 2006		15.2		0.9		16.1
Q2 2006		15.5		0.9		16.4
Q3 2006		16.7		0.9		17.6
Q4 2006		16.7		0.9		17.6
Q1 2007		17.4		1.1		18.5
Q2 2007		17.8		1.1		18.9

Summary Proforma Financial Information

The following unaudited proforma summary presents information as if Golf Galaxy had been acquired at the beginning of the periods presented.

Proforma Results for 13 and 26 Weeks Ended July 29, 2006 — Unaudited⁽¹⁾
(In thousands, except per share amounts)

	Dick’s
	Sporting		Golf
13 Weeks Ended	Goods		Galaxy		Consolidated
Net Sales	$	734,047	$	100,171	$	834,218
Net Income		25,681		4,872		30,553
Basic earnings per share	$	0.51			$	0.60
Diluted earnings per share	$	0.47			$	0.56
Weighted Average Common Shares Outstanding
Basic		50,746		—		50,746
Diluted		54,887		—		54,887

	Dick’s
	Sporting		Golf
26 Weeks Ended	Goods		Galaxy		Consolidated
Net Sales	$	1,379,545	$	164,299	$	1,543,844
Net Income		37,098		4,456		41,554
Basic earnings per share	$	0.73			$	0.82
Diluted earnings per share	$	0.68			$	0.76
Weighted Average Common Shares Outstanding
Basic		50,583		—		50,583
Diluted		54,742		—		54,742

(1) The unaudited proforma results present information as if Golf Galaxy had been acquired at the beginning of the periods. The proforma amounts include certain reclassifications to Golf Galaxy amounts to conform them to the Company’s reporting calendar, an increase in pre-tax interest expense for the 13 and 26 weeks ended of $2,853 and $5,620 respectively, 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 periods and use of the statutory tax rate of the Company in effect during the periods presented to determine net income. 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.

Non-GAAP Financial Measures

The Company has provided non-GAAP financial information in this earnings release which includes comparable store sales as if Golf Galaxy had been acquired at the beginning of the periods presented. The proforma financial information is considered non-GAAP and is not preferable to GAAP financial information; however, the Company believes this information provides additional measures of performance that the Company’s management and investors can use to compare core, operating results between reporting periods. These non-GAAP measures are provided below and on the Company’s website at http://www.dickssportinggoods.com/ (click on the Investor Relations link at the top of the home page). The Company’s website is not part of this press release.

Proforma Comparable Store Sales

	Dick’s Sporting Goods		Golf Galaxy		Consolidated
13 weeks ended July 29, 2006		6.5%		0.4%		6.0%
13 weeks ended August 4, 2007		7.2%		4.7%		7.0%
26 weeks ended July 29, 2006		6.9%		0.1%		6.2%
26 weeks ended August 4, 2007		4.7%		4.7%		4.7%

The proforma comparable store sales present information as if Golf Galaxy had been acquired at the beginning of the periods presented. The sales have been adjusted to conform to the Company’s reporting calendar and method of reporting comparable sales. Golf Galaxy will be included in the quarterly comparable store base beginning in Q2 2008, which will be the first full quarter following the anniversary of the date of acquisition.

EBITDA

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.

	13 Weeks Ended
	August 4,			July 29,
EBITDA	2007			2006
	(dollars in thousands)
Net income	$	47,930		$	25,681
Provision for income taxes		31,635			17,120
Interest expense, net		3,629			2,906
Depreciation and amortization		21,634			13,737
EBITDA	$	104,828		$	59,444
% increase in EBITDA		76	%

	26 Weeks Ended
	August 4,			July 29,
EBITDA	2007			2006
	(dollars in thousands)
Net income	$	69,632		$	37,098
Provision for income taxes		46,017			24,732
Interest expense, net		6,835			5,155
Depreciation and amortization		38,036			26,246
EBITDA	$	160,520		$	93,231
% increase in EBITDA		72	%

Reconciliation of Gross Capital Expenditures to Capital Expenditures

The following table represents a reconciliation of the Company’s gross capital expenditures to its capital expenditures, net of tenant allowances.

	26 Weeks Ended
	August 4,			July 29,
	2007			2006
	(dollars in thousands)
Gross capital expenditures	$	(76,884	)	$	(63,712	)
Proceeds from sale-leaseback transactions		9,226			4,583
Changes in deferred construction allowances		22,593			4,967
Construction allowance receipts		2,699			5,799
Net capital expenditures	$	(42,366	)	$	(48,363	)