Second Quarter Results

The Company reported consolidated non-GAAP net income for the second quarter ended August 1, 2009 of $42.4 million, or $0.36 per diluted share. The second quarter earnings per diluted share exceeded estimated earnings expectations provided on May 19, 2009 of $0.28 - 0.31 per diluted share. For the second quarter ended August 2, 2008, the Company reported consolidated non-GAAP net income of $44.3 million, or $0.38 per diluted share. Non-GAAP earnings exclude merger and integration costs.

On a GAAP basis, the Company reported consolidated net income for the second quarter ended August 1, 2009 of $38.9 million, or $0.33 per diluted share, compared to $39.9 million, or $0.34 per diluted share for the second quarter of 2008. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliation."

Net sales for the second quarter of 2009 increased by 3.7% to $1,126.8 million due primarily to the opening of new stores and the addition of e-commerce sales, partially offset by a 4.1% decrease in comparable store sales. The 4.1% consolidated same store sales decline consisted of a 3.2% decrease in Dick's Sporting Goods stores and an 11.1% decline in the Golf Galaxy stores.

"In the second quarter, we generated higher than anticipated sales, continued to effectively manage inventory, and leveraged operating expenses. As a result, we generated higher earnings from our Dick's Sporting Goods stores this year compared to the same quarter last year, in spite of the challenging economic environment," said Edward W. Stack, Chairman and CEO. "In addition, with higher sales and better than anticipated operating leverage, Golf Galaxy performed better than originally expected."

New Stores

In the second quarter, the Company opened four Dick's Sporting Goods stores and converted the remaining Chick's Sporting Goods stores to Dick's Sporting Goods stores. The new stores are listed in a table later in the release under the heading "Store Count and Square Footage."

In the first two quarters of 2009, the Company has opened 13 new Dick's Sporting Goods stores, opened one new Golf Galaxy store, converted the Golf Shop to a Golf Galaxy store, closed two Chick's Sporting Goods stores and converted the remaining Chick's Sporting Goods stores to Dick's Sporting Goods stores.

As of August 1, 2009, the Company operated 409 Dick's Sporting Goods stores in 40 states, with approximately 22.7 million square feet and 91 Golf Galaxy stores in 31 states, with approximately 1.5 million square feet.

Balance Sheet

Long term debt declined by $159.0 million from the end of the second quarter of 2008 to the end of the second quarter of 2009 due to the repayment of $172.5 million for the Company's senior convertible notes in the first quarter of this year. The inventory per square foot was 5.5% less at the end of the second quarter 2009 as compared to the end of the second quarter 2008.

Year-to-Date Results

The Company reported consolidated non-GAAP net income for the 26 weeks ended August 1, 2009 of $55.2 million, or $0.47 per diluted share. For the 26 weeks ended August 2, 2008, the Company reported consolidated non-GAAP net income of $63.9 million, or $0.55 per diluted share. Non-GAAP earnings exclude merger and integration costs.

On a GAAP basis, the Company reported consolidated net income for the 26 weeks ended August 1, 2009 of $49.1 million, or $0.42 per diluted share, compared to $59.5 million, or $0.51 per diluted share for the same period last year. The GAAP to non-GAAP reconciliation is included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliation."

Net sales increased 4.4% to $2,086.4 million primarily due to the opening of new stores and the addition of e-commerce sales, partially offset by a comparable store sales decrease of 5.0%.

Current 2009 Outlook

The Company's current outlook for 2009 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.

The Company believes that the remainder of the year will continue to be challenging. However, based on the second quarter results and the Company's expectations for the second half of the year, it is raising its annual earnings estimates and increasing the expected same store sales for 2009.

   Full Year 2009     --  Based on an estimated 117 million diluted shares outstanding, the       Company currently anticipates reporting non-GAAP consolidated earnings       per diluted share of approximately $1.02 - 1.07, excluding merger and       integration costs. For the full year 2008, the Company reported       consolidated earnings per diluted share of $1.15, excluding a non-cash       impairment charge and merger and integration costs.     --  On a GAAP basis, the Company is anticipating reporting consolidated       earnings per diluted share of approximately $0.97 - 1.02 in 2009       compared to a net loss of $0.36 per diluted share in 2008.     --  Comparable store sales are expected to decrease approximately 5 to 4%       compared to a 4.8% decrease in 2008. The comparable store sales       calculation for the full year 2009 includes Dick's Sporting Goods       stores and Golf Galaxy stores. The comparable store sales calculation       for the full year 2008 includes Dick's Sporting Goods stores only.     --  The Company currently expects to open approximately 24 new Dick's       Sporting Goods stores in 2009. The increase in the number of new       stores compared to previous expectations is due to the Company's plans       to accelerate its expansion in the Pacific Northwest.    Third Quarter 2009     --  Based on an estimated 117 million diluted shares outstanding, the       Company anticipates reporting consolidated earnings per diluted share       of approximately $0.04 - 0.07 in the third quarter of 2009. In the       third quarter of 2008, the Company reported non-GAAP earnings per       diluted share of $0.07, excluding merger and integration costs, or       $0.05 on a GAAP basis.     --  Comparable store sales are expected to decrease approximately 6 to 4%       compared to a 2.8% decrease in the third quarter last year. The       comparable store sales calculation for the third quarter in 2008 and       2009 includes Dick's Sporting Goods stores and Golf Galaxy stores. It       excludes Chick's Sporting Goods stores converted to Dick's Sporting       Goods stores.     --  The Company expects to open approximately 11 new Dick's Sporting Goods       stores in the third quarter. The accelerated expansion in the Pacific       Northwest is expected to have a negative impact on earnings per       diluted share of approximately $0.01 in the third quarter, which has       been considered in the earnings expectations.    Cash Flow     --  In 2009, the Company anticipates producing positive operating cash       flow, net of capital expenditures, in excess of that generated in       2008. This is expected to be accomplished through continued effective       inventory management and the anticipated reduction of net capital       expenditures to $70 million in 2009 as compared to $115 million in       2008.    New Accounting Pronouncement   

In May 2008, the FASB issued FSP APB 14-1, which impacts the accounting treatment for convertible debt instruments that allow for either mandatory or optional cash settlements. FSP APB 14-1 impacted the accounting associated with the Company's senior convertible notes. This FSP requires the Company to recognize additional non-cash interest expense based on the market rate for similar debt instruments without the conversion feature. FSP APB 14-1 was effective for fiscal periods beginning in 2009 and required retrospective application. The Company adopted this accounting standard in the first quarter of 2009, and accordingly, the prior periods' financial statements included herein have been adjusted. Adoption of this standard reduced previously reported earnings per diluted share for the second quarter and full year fiscal 2008 by $0.01 and $0.04, respectively.

Conference Call Info

The Company will be hosting a conference call today at 10:00 a.m. 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 web cast will be archived on the Company's web site for 30 days. In addition, a dial-in replay will be available shortly after the call. To listen to the replay, investors should dial 888-286-8010 (domestic callers) or 617-801-6888 (international callers) and enter confirmation code 34430126. 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, the current economic and financial downturn and its effect on consumer spending, changes in macro economic factors and market conditions, including the housing market and fuel costs, that impact the level of consumer spending for the types of merchandise sold by the Company, potential volatility in our stock price and the tightening of availability and higher costs associated with current and new sources of credit resulting from uncertainty in financial markets, changes in consumer demand, the retailing environment and customer preferences and spending habits, competitive pressures, pricing and promotional activities of competitors, changes in law and regulation including consumer protection and labor, currency exchange rate fluctuations, weather conditions, litigation, risks and costs associated with combining businesses and/or assimilating acquired companies 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 January 31, 2009 as filed with the Securities and Exchange Commission on March 20, 2009, 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.

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 1, 2009, the Company operated 409 Dick's Sporting Goods stores in 40 states primarily throughout the eastern half of the U.S. The Company also owns Golf Galaxy, Inc., a multi-channel golf specialty retailer, with 91 stores in 31 states, ecommerce websites and catalog operations.

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

   Contact:   Timothy E. Kullman, EVP - Finance, Administration,   Chief Financial Officer and Treasurer or   Anne-Marie Megela, Director, Investor Relations   724-273-3400   investors@dcsg.com                       DICK'S SPORTING GOODS, INC.