DICK'S Sporting Goods (DKS) 8-K Dick’s Sporting Goods Reports First Quarter Results

Exhibit 99.1

PRESS RELEASE

Dick’s Sporting Goods Reports First Quarter Results

PITTSBURGH, Pa., May 22, 2008 — Dick’s Sporting Goods, Inc. (NYSE: DKS) today reported sales and earnings results for the first quarter ended May 3, 2008. The results include the operating results of Golf Galaxy and Chick’s Sporting Goods from their respective acquisition dates of February 13, 2007 and November 30, 2007.

First Quarter Results

Net income decreased 4% to $20.8 million and earnings per diluted share decreased 5% to $0.18, compared to prior year net income of $21.7 million, or $0.19 per diluted share. First quarter 2008 results include a pretax gain on sale of a corporate aircraft totaling $2.4 million, or $0.01 per diluted share. Earnings guidance provided on March 11, 2008 was for earnings per diluted share of $0.16 — 0.19.

Net sales for the quarter increased 11% to $912.1 million primarily due to new store sales, partially offset by a comparable store sales decrease of 3.8% for Dick’s Sporting Goods stores, compared to the first quarter of 2007. Comparable store sales for Golf Galaxy on a pro-forma basis decreased 7.4%.

“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.

New Stores

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.”

2008 Outlook

The Company’s current outlook for 2008 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.

“In 2008 we are continuing to grow our business and build our brand. However, we are being cautious about our outlook for the remainder of the year, due to the overall uncertainty of the current economic environment,” said Mr. Stack. “We will constantly monitor business trends and are positioned to take appropriate actions should the economic environment change.”

• Full Year 2008

• Based on an estimated 118.3 million diluted shares outstanding, the Company 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.

• 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.

• Second Quarter 2008

• Based on an estimated 117.5 million diluted shares outstanding, the Company anticipates reporting consolidated earnings per diluted share of approximately $0.34 — 0.38, as compared to earnings per diluted share for the second quarter 2007 of $0.41.

• 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.

Conference Call Info

The Company will be hosting a conference call today at 10:00 am eastern time to discuss the first 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 17110385. 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 include, without limitation, changes in economic and market conditions that affect consumer spending, changes in consumer demand, competitive pressures, currency exchange rate fluctuations, weather conditions, litigation and our ability to manage our operations and growth. Known and unknown risks and uncertainties are more fully described in the Company’s Annual Report on Form 10-K for the year ended February 2, 2008 as filed with the Securities and Exchange Commission on March 27, 2008, and other reports filed with the Securities and Exchange Commission. The Company disclaims any obligation and does not intend to update any forward-looking statements except as may be required by the securities laws.

The prior period EPS numbers presented in this press release have been adjusted to give effect to the two-for-one stock split, in the form of a stock dividend, which became effective on October 19, 2007 to our stockholders of record on September 28, 2007.

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 May 3, 2008, the Company operated 348 Dick’s Sporting Goods stores in 38 states primarily throughout the eastern half of the U.S. The Company also owns Golf Galaxy, Inc., a multi-channel golf specialty retailer, with 83 stores in 30 states, ecommerce websites and catalog operations and Chick’s Sporting Goods, Inc., which operates 15 specialty sporting goods stores in Southern California.

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

Contact:

Timothy E. Kullman, EVP — Finance, Administration & Chief Financial Officer or
Anne-Marie Megela, 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
	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
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		111,216						107,098
Diluted		117,295						114,442

(1) Column does not add due to rounding

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

	May 3,		May 5,		February 2,
	2008		2007		2008
	(unaudited)		(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	46,997	$	41,424	$	50,307
Accounts receivable, net		75,780		61,474		62,035
Income taxes receivable		—		11,674		—
Inventories, net		970,543		818,432		887,364
Prepaid expenses and other current assets		53,227		40,771		50,274
Deferred income taxes		20,131		1,294		19,714
Total current assets		1,166,678		975,069		1,069,694
Property and equipment, net		547,024		489,726		531,779
Construction in progress — leased facilities		31,149		14,930		23,744
Intangible assets, net		97,837		9,323		80,038
Goodwill		304,386		320,045		304,366
Other assets		43,487		53,943		26,014
TOTAL ASSETS	$	2,190,561	$	1,863,036	$	2,035,635
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	401,962	$	386,444	$	365,750
Accrued expenses		231,510		180,736		228,816
Deferred revenue and other liabilities		86,797		74,420		104,549
Income taxes payable		13,442		—		62,583
Current portion of other long-term debt and capital leases		251		152		250
Total current liabilities		733,962		641,752		761,948
LONG-TERM LIABILITIES:
Senior convertible notes		172,500		172,500		172,500
Revolving credit borrowings		121,485		158,557		—
Other long-term debt and capital leases		8,622		8,362		8,685
Non-cash obligations for construction in progress — leased facilities		31,149		14,930		23,744
Deferred revenue and other liabilities		204,553		181,404		180,238
Total long-term liabilities		538,309		535,753		385,167
COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY:
Common stock		851		814		848
Class B common stock		262		266		263
Additional paid-in capital		425,957		346,266		416,423
Retained earnings		489,749		335,639		468,974
Accumulated other comprehensive income		1,471		2,546		2,012
Total stockholders’ equity		918,290		685,531		888,520
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,190,561	$	1,863,036	$	2,035,635

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

	13 Weeks Ended
	May 3,			May 5,
	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	20,775		$	21,701
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		20,400			16,402
Deferred income taxes		(10,950	)		(4,696	)
Stock-based compensation		5,370			6,902
Excess tax benefit from stock-based compensation		(848	)		(8,957	)
Tax benefit from exercise of stock options		159			2,484
Tax benefit from convertible bond hedge		744			680
Gain on sale of asset		(2,356	)		—
Changes in assets and liabilities:
Accounts receivable		7,922			(2,496	)
Inventories		(83,179	)		(105,995	)
Prepaid expenses and other assets		(16,371	)		(777	)
Accounts payable		38,456			71,021
Accrued expenses		(20,147	)		(17,039	)
Income taxes receivable / payable		(48,292	)		12,426
Deferred construction allowances		7,324			9,136
Deferred revenue and other liabilities		(5,127	)		(7,805	)
Net cash used in operating activities		(86,120	)		(7,013	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(49,393	)		(45,410	)
Purchase of corporate aircraft		(25,107	)		—
Proceeds from sale of corporate aircraft		27,463			—
Proceeds from sale-leaseback transactions		—			165
Payment for purchase of Golf Galaxy, net of $4,859 cash acquired		—			(221,449	)
Net cash used in investing activities		(47,037	)		(266,694	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings, net		121,485			158,557
Payments on other long-term debt and capital leases		(59	)		(57	)
Construction allowance receipts		7,454			—
Proceeds from exercise of stock options		2,456			17,396
Excess tax benefit from stock-based compensation		848			8,957
Decrease in bank overdraft		(2,244	)		(5,701	)
Net cash provided by financing activities		129,940			179,152
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(93	)		37
NET DECREASE IN CASH AND CASH EQUIVALENTS		(3,310	)		(94,518	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		50,307			135,942
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	46,997		$	41,424
Supplemental disclosure of cash flow information:
Construction in progress — leased facilities	$	7,405		$	1,843
Accrued property and equipment	$	16,948		$	(7,647	)
Cash paid for interest	$	2,841		$	3,340
Cash paid for income taxes	$	72,537		$	3,318
Stock options issued for acquisition (net of tax benefit upon exercise)	$	7,266		$	7,630

Store Count and Square Footage

The stores that opened during the first quarter of 2008 are as follows:

DICK’S		GOLF GALAXY
Store	Market	Store	Market
Tempe, AZ	Phoenix	Towson, MD	Baltimore
Huber Heights, OH	Dayton	Pembroke Pines, FL	Miami
Portland, OR	Portland	Fairview Heights, IL	St. Louis
Williamsburg, VA	Virginia Beach	Montgomeryville, PA	Philadelphia
Ocala, FL	Ocala
Montgomery, AL	Montgomery
Tupelo, MS	Tupelo
Noblesville, IN	Indianapolis

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

	Fiscal 2008								Fiscal 2007
	Dick’s Sporting				Chick’s Sporting				Dick’s Sporting
	Goods		Golf Galaxy		Goods		Total		Goods		Golf Galaxy		Total
Beginning stores		340		79		15		434		294		65		359
Q1 New		8		4		—		12		15		10		25
Ending stores		348		83		15		446		309		75		384
Relocated stores		—		—		—		—		—		—		—

Square Footage:
(in millions)

	Dick’s Sporting				Chick’s Sporting
	Goods		Golf Galaxy		Goods		Total
Q1 2007		17.4		1.1		—		18.5
Q2 2007		17.8		1.1		—		18.9
Q3 2007		19.0		1.2		—		20.2
Q4 2007		19.0		1.3		0.8		21.1
Q1 2008		19.5		1.3		0.8		21.6

Non-GAAP Financial Measures

In addition to reporting the Company’s financial results in accordance with generally accepted accounting principles (“GAAP”), the Company provides information regarding net income and earnings per diluted share adjusted for the gain on sale of asset, pro-forma comparable store sales, earnings before interest, taxes and depreciation (“EBITDA”) as well as a reconciliation from the Company’s gross capital expenditures, net of tenant allowances. The following measures are considered non-GAAP and are not preferable to GAAP financial information; however, the Company believes this information provides additional measures of performance that the Company’s management, analysts 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 athttp://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.

Pro-forma Net Income and Proforma Earnings Per Share Reconciliation
(in thousands, except per share data):

	13 Weeks Ended
	May 3, 2008
				Per
	Amounts			Share
Net income and earnings per diluted share (GAAP)	$	20,775		$	0.18
Less: Gain on sale of asset, after tax		(1,402	)		(0.01	)
Pro-forma net income and earnings per share	$	19,373		$	0.17

Pro-forma Comparable Store Sales

The following pro-forma 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.

	Dick's Sporting
	Goods			Golf Galaxy			Consolidated
13 weeks ended May 5, 2007		2.0	%		5.5	%		2.3	%
13 weeks ended May 5, 2007 shifted(1)		0.1	%		0.8	%		0.1	%
13 weeks ended May 3, 2008		-3.8	%		-7.4	%		-4.1	%

(1) Adjusted for the shifted retail calender

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
	May 3,			May 5,
EBITDA	2008			2007
	(dollars in thousands)
Net income	$	20,775		$	21,701
Provision for income taxes		14,141			14,383
Interest expense, net		1,658			3,207
Depreciation and amortization		20,400			16,402
Less: Gain on sale of asset		2,356			—
EBITDA	$	54,618		$	55,693
% decrease in EBITDA		-2	%

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.

	13 Weeks Ended
	May 3,			May 5,
	2008			2007
	(dollars in thousands)
Gross capital expenditures	$	(49,393	)	$	(45,410	)
Proceeds from sale-leaseback transactions		—			165
Changes in deferred construction allowances		7,324			9,136
Construction allowance receipts		7,454			—
Net capital expenditures	$	(34,615	)	$	(36,109	)