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 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.