PITTSBURGH, Nov. 18, 2014 /PRNewswire/ -- DICK'S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, today reported sales and earnings results for the third quarter ended November 1, 2014.

Third Quarter Results

The Company reported consolidated net income for the third quarter ended November 1, 2014 of $49.2 million, or $0.41 per diluted share, compared to the Company's expectations provided on August 19, 2014 of $0.38 to 0.42 per diluted share. For the third quarter ended November 2, 2013, the Company reported consolidated net income of $50.0 million, or $0.40 per diluted share.

Net sales for the third quarter of 2014 increased 9.0% to approximately $1.5 billion. Consolidated same store sales increased 1.1%, compared to the Company's guidance of an approximate 1 to 3% increase. Same store sales for DICK'S Sporting Goods increased 1.7%, while Golf Galaxy decreased 8.9%. Third quarter 2013 consolidated same store sales increased 3.3%, adjusted for the shifted retail calendar due to the 53(rd) week in 2012.

"Our third quarter earnings were at the higher end of our guidance, but continued pressures in golf and hunting kept our comp sales at the lower end of our expectations," said Edward W. Stack, Chairman and CEO. "The balance of our business, excluding golf and hunting, continued to deliver strong results, posting a 4.6% comp increase for the quarter. The performance in these other categories, such as women's and youth apparel, are good indicators that our recent actions to reallocate space and payroll within our stores are paying off."

Omni-channel Development

eCommerce penetration for the third quarter of 2014 was 7.3% of total sales, compared to 6.5% in the third quarter last year.

In the third quarter, the Company opened 24 new DICK'S Sporting Goods stores, one new Golf Galaxy store and seven new Field & Stream stores. The Company also relocated one DICK'S Sporting Goods store and one Golf Galaxy store, remodeled five DICK'S Sporting Goods stores and closed one DICK'S Sporting Goods store. As of November 1, 2014, the Company operated 597 DICK'S Sporting Goods stores in 46 states, with approximately 32.0 million square feet and 80 Golf Galaxy stores in 29 states, with approximately 1.4 million square feet.

Store count, square footage and new stores are listed in a table later in the release under the heading "Store Count and Square Footage."

In the beginning of the fourth quarter, the Company opened six new DICK'S Sporting Goods stores, completing its 2014 store development program. The Company opened a total of 45 net new DICK'S Sporting Goods stores, one new Golf Galaxy store and eight new Field & Stream stores. The Company also relocated five DICK'S Sporting Goods stores and two Golf Galaxy stores and remodeled five DICK'S Sporting Goods stores in 2014. The Company also plans to close two Golf Galaxy stores that are at the end of their leases during the fourth quarter.

Balance Sheet

The Company ended the third quarter of 2014 with approximately $78 million in cash and cash equivalents and approximately $281 million in outstanding borrowings under its revolving credit facility. This compares to cash and cash equivalents of approximately $66 million and $116 million of borrowings under its $500 million revolving credit facility at the end of the third quarter of 2013. Over the course of the last 12 months, the Company utilized capital to invest in omni-channel growth, including Field & Stream, and returned over $410 million to shareholders through share repurchases and quarterly dividends.

Total inventory was 12.4% higher at the end of the third quarter of 2014 as compared to the end of the third quarter of 2013, including inventory to support the Company's Field & Stream stores, and inventory for the upcoming holiday season.

Year-to-Date Results

The Company reported consolidated non-GAAP net income for the 39 weeks ended November 1, 2014 of $192.2 million, or $1.58 per diluted share. For the 39 weeks ended November 2, 2013, the Company reported consolidated non-GAAP net income of $199.3 million, or $1.59 per diluted share.

On a GAAP basis, the Company reported consolidated net income for the 39 weeks ended November 1, 2014 of $188.7 million, or $1.55 per diluted share. For the 39 weeks ended November 2, 2013, on a GAAP basis, the Company reported consolidated net income of $199.0 million, or $1.58 per diluted share. The GAAP to non-GAAP reconciliations are included in a table later in the release under the heading "Non-GAAP Net Income and Earnings Per Share Reconciliations."

Net sales for the 39 weeks ended November 1, 2014 increased 9.1% from last year's period to $4.7 billion due to the opening of new stores coupled with a consolidated same store sales increase of 2.0%.

Capital Allocation

In the third quarter of 2014, the Company repurchased approximately 1.6 million shares of its common stock at an average cost of $45.98 per share, for a total cost of $75.0 million. To date, the Company has repurchased $455.6 million of common stock under its $1 billion share repurchase authorization.

On November 13, 2014, the Company's Board of Directors authorized and declared a quarterly dividend in the amount of $0.125 per share on the Company's Common Stock and Class B Common Stock. The dividend is payable in cash on December 26, 2014 to stockholders of record at the close of business on December 5, 2014.

Current 2014 Outlook

The Company's current outlook for 2014 is based on current expectations and includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as described later in this release. Although the Company believes that the expectations and other comments reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations or comments will prove to be correct.


    --  Full Year 2014
        --  Based on an estimated 121 million diluted shares outstanding, the
            Company now anticipates reporting consolidated non-GAAP earnings per
            diluted share of approximately $2.75 to 2.85, excluding a gain on
            the sale of an asset and golf restructuring charges. For the 52
            weeks ended February 1, 2014, the Company reported consolidated
            earnings per diluted share of $2.69.
        --  Consolidated same store sales are now expected to increase
            approximately 1 to 2%, compared to a 1.9% increase in fiscal 2013.
    --  Fourth Quarter 2014
        --  Based on an estimated 120 million diluted shares outstanding, the
            Company currently anticipates reporting consolidated earnings per
            diluted share of approximately $1.18 to 1.28 in the fourth quarter
            of 2014, compared to consolidated earnings per diluted share of
            $1.11 in the fourth quarter of 2013.
        --  Consolidated same store sales are currently expected to increase
            approximately 1 to 3% in the fourth quarter of 2014, as compared to
            a 7.3% increase in the fourth quarter of 2013, adjusted for the
            shifted retail calendar due to the 53(rd) week in 2012.
    --  Capital Expenditures
        --  In 2014, the Company anticipates capital expenditures to be
            approximately $340 million on a gross basis and approximately $245
            million on a net basis. In 2013, capital expenditures were
            approximately $286 million on a gross basis and approximately $238
            million on a net basis.

Conference Call Info

The Company will host a conference call today at 10:00 a.m. Eastern Time to discuss the third quarter results. Investors will have the opportunity to listen to the earnings conference call over the internet through the Company's website located at www.DICKS.com/Investors. To listen to the live call, please go to the website at least fifteen minutes early to register and download and install any necessary audio software.

In addition to the webcast, the call can be accessed by dialing (877) 443-5743 (domestic callers) or (412) 902-6617 (international callers) and requesting the "DICK'S Sporting Goods Earnings Call."

For those who cannot listen to the live webcast, it will be archived on the Company's website for approximately 30 days. In addition, a dial-in replay of the call will be available. To listen to the replay, investors should dial (877) 344-7529 (domestic callers) or (412) 317-0088 (international callers) and enter confirmation code 10054576. The dial-in replay will be available for approximately 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 or otherwise made by our management in connection with the subject matter of this release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors, many of which may be beyond our control. Our future performance and financial results may differ materially from those included in any such forward-looking statements and such forward-looking statements should not be relied upon by investors as a prediction of actual results. You can identify these statements as those that may predict, forecast, indicate or imply future results, performance or advancements and by forward-looking words such as "believe", "anticipate", "expect", "estimate", "predict", "intend", "plan", "project", "goal", "will", "will be", "will continue", "will result", "could", "may", "might" or other words with similar meanings. Forward-looking statements include statements regarding, among other things, the Company's expectations that its recent actions to reallocate space and payroll are driving results, the Company's future performance, growth in the omni-channel network, number of new store openings and capital expenditures.

The following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results, and could cause actual results for fiscal 2014 and beyond to differ materially from those expressed or implied in any forward-looking statements included in this release or otherwise made by our management: economic and financial uncertainties may cause a decline in consumer spending; intense competition in the sporting goods industry; changes in consumer demand or shopping patterns; limitations on the availability of attractive store locations and/or lease terms; unauthorized disclosure of sensitive or confidential customer information; risks relating to our private brand offerings; disruptions with our eCommerce services provider or of our information systems; access to adequate capital; changing laws and regulations affecting our business including the regulation of consumer products; factors affecting our vendors; litigation risks; foreign trade issues and currency exchange rate fluctuations; the loss of our key executives, especially Edward W. Stack, our Chairman and Chief Executive Officer; protection of our intellectual property; ability to attract and retain qualified business leaders; disruption at our distribution centers; developments with sports leagues, professional athletes or sports superstars; weather and seasonality of our business; risks associated with strategic investments or acquisitions; risks associated with being a controlled company; our anti-takeover provisions; our current intention to issue quarterly cash dividends; and our share repurchase activity, if any.

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 1, 2014 as filed with the Securities and Exchange Commission ("SEC") on March 28, 2014 and in other reports filed with the SEC. In addition, we operate in a highly competitive and rapidly changing environment; therefore, new risk factors can arise, and it is not possible for management to predict or assess the impact of all such risk factors. Forward-looking statements included in this release are made as of the date of this release. We do not assume any obligation and do not intend to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by the securities laws.

About DICK'S Sporting Goods, Inc.

Founded in 1948, DICK'S Sporting Goods, Inc. is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories. As of November 1, 2014, the Company operated 597 DICK'S Sporting Goods locations across the United States, serving and inspiring athletes and outdoor enthusiasts to achieve their personal best through a blend of dedicated associates, in-store services and unique specialty shop-in-shops dedicated to Team Sports, Athletic Apparel, Golf, Lodge/Outdoor, Fitness and Footwear.

Headquartered in Pittsburgh, PA, DICK'S also owns and operates Golf Galaxy, Field & Stream and True Runner specialty stores. DICK'S offers its products through a content-rich eCommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront. DICK'S Sporting Goods, Inc. news releases are available at www.DICKS.com/Investors. The Company's website is not part of this release.

Contacts:

Anne-Marie Megela, Vice President - Treasury Services and Investor Relations, or
Scott W. McKinney, Director of Investor Relations
DICK'S Sporting Goods, Inc.
investors@dcsg.com
(724) 273-3400




                                                          DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

                                                         CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

                                                             (In thousands, except per share data)


                                                                          13 Weeks Ended
                                                                          --------------

                                            November 1,                 % of                     November 2,                % of
                                                   2014               Sales (1)                              2013
                                                                                                                            Sales
                                                                                                                            -----


    Net sales                                           $1,526,675                             100.00%                               $1,400,623            100.00%

    Cost of goods sold, including occupancy
     and distribution costs                   1,074,703                               70.40                         975,724                          69.66
                                              ---------                               -----                         -------                          -----


    GROSS PROFIT                                451,972                               29.60                         424,899                          30.34


    Selling, general and administrative
     expenses                                   357,708                               23.43                         333,724                          23.83

    Pre-opening expenses                         14,334                                0.94                          12,122                           0.87
                                                 ------                                ----                          ------                           ----


    INCOME FROM OPERATIONS                       79,930                                5.24                          79,053                           5.64


    Interest expense                                858                                0.06                             696                           0.05

    Other income                                  (486)                             (0.03)                        (2,735)                        (0.20)
                                                   ----                               -----                          ------                          -----


    INCOME BEFORE INCOME TAXES                   79,558                                5.21                          81,092                           5.79


    Provision for income taxes                   30,347                                1.99                          31,115                           2.22
                                                 ------                                ----                          ------                           ----


    NET INCOME                                             $49,211                               3.22%                                  $49,977              3.57%
                                                           =======                                ====                                   =======               ====


    EARNINGS PER COMMON SHARE:

    Basic                                                    $0.42                                                                        $0.41

    Diluted                                                  $0.41                                                                        $0.40


    WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING:

    Basic                                       118,142                                                                      123,221

    Diluted                                     120,002                                                                      125,842


    Cash dividend declared per share                        $0.125                                                                       $0.125


    (1) Column does not add due to rounding




                                                          DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

                                                         CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

                                                             (In thousands, except per share data)


                                                                          39 Weeks Ended
                                                                          --------------

                                            November 1,                 % of                     November 2,                  % of
                                                   2014                                                      2013
                                                                     Sales (1)                                             Sales (1)
                                                                     --------                                               --------


    Net sales                                           $4,654,473                             100.00%                                 $4,265,755            100.00%

    Cost of goods sold, including occupancy
     and distribution costs                   3,259,063                               70.02                        2,949,872                           69.15
                                              ---------                               -----                        ---------                           -----


    GROSS PROFIT                              1,395,410                               29.98                        1,315,883                           30.85


    Selling, general and administrative
     expenses                                 1,063,351                               22.85                          983,382                           23.05

    Pre-opening expenses                         28,480                                0.61                           18,736                            0.44
                                                 ------                                ----                           ------                            ----


    INCOME FROM OPERATIONS                      303,579                                6.52                          313,765                            7.36


    Interest expense                              2,230                                0.05                            2,081                            0.05

    Other income                                (4,863)                             (0.10)                        (10,675)                         (0.25)
                                                 ------                               -----                          -------                           -----


    INCOME BEFORE INCOME TAXES                  306,212                                6.58                          322,359                            7.56


    Provision for income taxes                  117,550                                2.53                          123,398                            2.89
                                                -------                                ----                          -------                            ----


    NET INCOME                                            $188,662                               4.05%                                   $198,961              4.66%
                                                          ========                                ====                                    ========               ====


    EARNINGS PER COMMON SHARE:

    Basic                                                    $1.58                                                                          $1.62

    Diluted                                                  $1.55                                                                          $1.58


    WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING:

    Basic                                       119,743                                                                        122,942

    Diluted                                     121,734                                                                        125,766


    Cash dividends declared per share                       $0.375                                                                         $0.375


    (1) Column does not add due to rounding




                                                   DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

                                                      CONSOLIDATED BALANCE SHEETS - UNAUDITED

                                                              (Dollars in thousands)


                                           November 1,                       November 2,        February 1,
                                                  2014                                 2013           2014
                                                  ----                                 ----           ----

    ASSETS

    CURRENT ASSETS:

    Cash and cash equivalents                                $77,933                                $65,647              $181,731

    Accounts receivable, net                    87,944                                 81,389                   60,779

    Income taxes receivable                     10,361                                 34,635                    7,275

    Inventories, net                         1,765,119                              1,570,034                1,232,065

    Prepaid expenses and other current
     assets                                     92,375                                104,806                   99,386

    Deferred income taxes                       42,133                                 48,414                   38,835
                                                ------                                 ------                   ------

    Total current assets                     2,075,865                              1,904,925                1,620,071
                                             ---------                              ---------                ---------


    Property and equipment, net              1,195,274                              1,059,865                1,084,529

    Intangible assets, net                     111,195                                 98,792                   98,255

    Goodwill                                   200,594                                200,594                  200,594

    Other assets:

    Deferred income taxes                        2,209                                  3,286                    2,477

    Other                                       70,395                                 80,433                   65,561
                                                ------                                 ------                   ------

    Total other assets                          72,604                                 83,719                   68,038
                                                ------                                 ------                   ------

    TOTAL ASSETS                                          $3,655,532                             $3,347,895            $3,071,487
                                                          ==========                             ==========            ==========


    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES:

    Accounts payable                                        $826,945                               $738,196              $562,439

    Accrued expenses                           307,708                                316,421                  265,040

    Deferred revenue and other liabilities     123,665                                106,847                  154,384

    Income taxes payable                             -                                     -                  19,825

    Current portion of other long-term
     debt and leasing obligations                  461                                  7,540                      899

    Total current liabilities                1,258,779                              1,169,004                1,002,587
                                             ---------                              ---------                ---------

    LONG-TERM LIABILITIES:

    Revolving credit borrowings                280,500                                116,400                        -

    Other long-term debt and leasing
     obligations                                 6,108                                  6,596                    6,476

    Deferred income taxes                       23,584                                 29,160                   38,617

    Deferred revenue and other liabilities     422,407                                328,712                  331,628
                                               -------                                -------                  -------

    Total long-term liabilities                732,599                                480,868                  376,721
                                               -------                                -------                  -------

    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY:

    Common stock                                   925                                    982                      961

    Class B common stock                           249                                    249                      249

    Additional paid-in capital                 987,892                                937,742                  958,943

    Retained earnings                        1,330,542                              1,064,511                1,187,514

    Accumulated other comprehensive income          15                                     78                       24

    Treasury stock, at cost                  (655,469)                             (305,539)                (455,512)
                                              --------                               --------                 --------

    Total stockholders' equity               1,664,154                              1,698,023                1,692,179
                                             ---------                              ---------                ---------

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                               $3,655,532                             $3,347,895            $3,071,487
                                                          ==========                             ==========            ==========




                                             DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES

                                           CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

                                                        (Dollars in thousands)


                                                                               39 Weeks Ended
                                                                               --------------

                                                               November 1,                November 2,
                                                                      2014                        2013
                                                                      ----                        ----

    CASH FLOWS FROM OPERATING ACTIVITIES:

    Net income                                                                 $188,662                           $198,961

    Adjustments to reconcile net income to
     net cash provided by (used in)
     operating activities

    Depreciation and amortization                                  131,000                                113,437

    Deferred income taxes                                         (18,063)                                 4,718

    Stock-based compensation                                        19,430                                 20,610

    Excess tax benefit from exercise of
     stock options                                                 (6,588)                              (20,966)

    Tax benefit from exercise of stock
     options                                                            28                                    125

    Gain on sale of asset                                         (14,428)                                     -

    Other non-cash items                                               435                                    435

    Changes in assets and liabilities:

    Accounts receivable                                           (14,146)                              (28,850)

    Inventories                                                  (533,054)                             (473,848)

    Prepaid expenses and other assets                             (12,870)                               (9,752)

    Accounts payable                                               290,216                                209,346

    Accrued expenses                                                25,532                                  3,440

    Income taxes payable / receivable                             (16,362)                              (66,680)

    Deferred construction allowances                                87,898                                 37,125

    Deferred revenue and other liabilities                        (24,933)                              (45,804)
                                                                   -------                                -------

    Net cash provided by (used in) operating
     activities                                                    102,757                               (57,703)
                                                                   -------                                -------

    CASH FLOWS FROM INVESTING ACTIVITIES:

    Capital expenditures                                         (271,257)                             (196,862)

    Proceeds from sale of other assets                              74,534                                 11,000

    Deposits and purchases of other assets                        (26,780)                              (60,048)
                                                                   -------                                -------

    Net cash used in investing activities                        (223,503)                             (245,910)
                                                                  --------                               --------

    CASH FLOWS FROM FINANCING ACTIVITIES:

    Revolving credit borrowings                                  1,057,600                                680,000

    Revolving credit repayments                                  (777,100)                             (563,600)

    Payments on other long-term debt and
     leasing obligations                                             (806)                               (2,139)

    Construction allowance receipts                                      -                                     -

    Proceeds from exercise of stock options                         10,671                                 34,920

    Excess tax benefit from exercise of
     stock options                                                   6,588                                 20,966

    Minimum tax withholding requirements                           (7,722)                              (13,090)

    Cash paid for treasury stock                                 (200,000)                             (105,603)

    Cash dividends paid to stockholders                           (46,564)                              (48,977)

    (Decrease) increase in bank overdraft                         (25,710)                                21,603
                                                                   -------                                 ------

    Net cash provided by financing
     activities                                                     16,957                                 24,080
                                                                    ------                                 ------

    EFFECT OF EXCHANGE RATE CHANGES ON CASH
     AND CASH EQUIVALENTS                                              (9)                                  (34)
                                                                       ---                                    ---

    NET DECREASE IN CASH AND CASH
     EQUIVALENTS                                                 (103,798)                             (279,567)

    CASH AND CASH EQUIVALENTS, BEGINNING OF
     PERIOD                                                        181,731                                345,214
                                                                   -------                                -------

    CASH AND CASH EQUIVALENTS, END OF PERIOD                                    $77,933                            $65,647
                                                                                =======                            =======


    Store Count and Square Footage
    ------------------------------


    The stores that opened during the third quarter of 2014 are as follows:


    Store                                        Market                     Concept
    -----                                        ------                     -------

    Coral Springs, FL                            Miami/Ft. Lauderdale       DICK'S Sporting Goods

    Lakeland, FL                                 Lakeland                   DICK'S Sporting Goods

    Garden City, KS                              Garden City                DICK'S Sporting Goods

    Frankfort, KY                                Lexington                  DICK'S Sporting Goods

    Wilmington, NC                               Wilmington                 DICK'S Sporting Goods

    North Myrtle
     Beach, SC                                   Myrtle Beach               DICK'S Sporting Goods

    Columbus, MS                                 Columbus                   DICK'S Sporting Goods

    Stockton, CA                                 Stockton                   DICK'S Sporting Goods

    Burlington, WA                               Burlington                 DICK'S Sporting Goods

    Muncie, IN                                   Muncie                     DICK'S Sporting Goods

    Patchogue, NY                                Long Island                DICK'S Sporting Goods

    Savannah, GA                                 Savannah                   DICK'S Sporting Goods

    Palmdale, CA                                 Palmdale                   DICK'S Sporting Goods

    Federal Way, WA                              Seattle                    DICK'S Sporting Goods

    Richmond, IN                                 Richmond                   DICK'S Sporting Goods

    Springfield, VA                              Washington D.C.            DICK'S Sporting Goods

    Orlando, FL                                  Orlando                    DICK'S Sporting Goods

    Roseville, MI                                Detroit                    DICK'S Sporting Goods

    Richmond, KY                                 Lexington                  DICK'S Sporting Goods

    Nampa, ID                                    Boise                      DICK'S Sporting Goods

    Holland, MI                                  Grand Rapids               DICK'S Sporting Goods

    Wentzville, MO                               St. Louis                  DICK'S Sporting Goods

    Turlock, CA                                  Modesto                    DICK'S Sporting Goods

    Fremont, CA                                  San Francisco              DICK'S Sporting Goods

    Cary, NC                                     Raleigh                    Golf Galaxy

    Cary, NC                                     Raleigh                    Field & Stream

    Columbus, OH                                 Columbus                   Field & Stream

    Washington, PA                               Pittsburgh                 Field & Stream

    Altoona, PA                                  Altoona                    Field & Stream

    Rochester, NY                                Rochester                  Field & Stream

    Horseheads, NY                               Elmira                     Field & Stream

    Miamisburg, OH                               Dayton                     Field & Stream


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


    Store Count:


                                                          Fiscal 2014                                                      Fiscal 2013
                                                          -----------                                                      -----------

                                                DICK'S Sporting Goods                          Specialty Store              Total         DICK'S Sporting Goods     Specialty Store          Total

                                                                                                Concepts (1)                                                         Concepts (1)
                                                                                                 -----------                                                          -----------

    Beginning stores                                               558                                                  84            642                       518                     83               601

    Q1 New stores                                                    8                                                   -             8                         2                      -                2

    Q2 New stores                                                    8                                                   1              9                         7                      -                7

    Q3 New stores                                                   24                                                   8             32                        25                      3                28

    Ending stores                                                  598                                                  93            691                       552                     86               638
                                                                   ---                                                 ---            ---                       ---                    ---               ---


    Closed stores                                                    1                                                   -             1                         -                     -                -


    Ending stores                                                  597                                                  93            690                       552                     86               638
                                                                   ===                                                 ===            ===                       ===                    ===               ===


    Remodeled stores                                                 5                                                   -             5                         3                      -                3

    Relocated stores                                                 5                                                   2              7                         1                      1                 2


    Square Footage:

    (in millions)


                                                                                                                                          DICK'S Sporting Goods     Specialty Store        Total (2)

                                                                                                                                                                     Concepts (1)
                                                                                                                                                                      -----------

    Q1 2013                                                                                                                                                 28.3                    1.4              29.7

    Q2 2013                                                                                                                                                 28.7                    1.4              30.0

    Q3 2013                                                                                                                                                 29.9                    1.5              31.4

    Q4 2013                                                                                                                                                 30.1                    1.5              31.6
    -------                                                                                                                                                 ----                    ---              ----

    Q1 2014                                                                                                                                                 30.6                    1.5              32.1

    Q2 2014                                                                                                                                                 30.9                    1.6              32.5

    Q3 2014                                                                                                                                                 32.0                    2.0              34.0


    (1) Includes the Company's Golf Galaxy, Field & Stream and True Runner stores.

    (2) Column may not add due to rounding.

Non-GAAP Financial Measures

In addition to reporting the Company's financial results in accordance with generally accepted accounting principles ("GAAP"), the Company believes that certain non-GAAP financial information provides users of the Company's financial information with additional useful information in evaluating operating performance between reporting periods. These measures should be viewed as supplementing, and not as an alternative or substitute for, the Company's financial results prepared in accordance with GAAP. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. A reconciliation of the Company's non-GAAP measures to the most directly comparable GAAP financial measures are provided below and on the Company's website at www.DICKS.com/Investors.


    Non-GAAP Net Income and Earnings Per Share Reconciliations:

    (in thousands, except per share data):


                                                                                                       Fiscal 2014

                                                                                             39 Weeks Ended November 1, 2014
                                                                                             -------------------------------


                                                                As Reported             Gain on Sale of                     Golf
                                                                                              Asset                    Restructuring
                                                                                                                          Charges              Non-GAAP Total
                                                                -----------            ----------------               --------------           --------------

    Net sales                                                               $4,654,473                                              $        -                $         -         $4,654,473

    Cost of goods sold, including
     occupancy and distribution
     costs                                                        3,259,063                                        -                            (2,405)         3,256,658
                                                                  ---------                                      ---                             ------          ---------


    GROSS PROFIT                                                  1,395,410                                        -                              2,405          1,397,815


    Selling, general and
     administrative expenses                                      1,063,351                                   14,428                            (17,960)         1,059,819

    Pre-opening expenses                                             28,480                                        -                                  -            28,480
                                                                     ------                                      ---                                ---            ------


    INCOME FROM OPERATIONS                                          303,579                                 (14,428)                             20,365            309,516


    Interest expense                                                  2,230                                        -                                  -             2,230

    Other income                                                    (4,863)                                       -                                  -           (4,863)
                                                                     ------                                      ---                                ---            ------


    INCOME BEFORE INCOME TAXES                                      306,212                                 (14,428)                             20,365            312,149


    Provision for income taxes                                      117,550                                  (5,771)                              8,146            119,925
                                                                    -------                                   ------                               -----            -------


    NET INCOME                                                                $188,662                                                $(8,657)                    $12,219            $192,224
                                                                              ========                                                 =======                     =======            ========


    EARNINGS PER COMMON SHARE:

    Basic                                                                        $1.58                                                                                      $1.61

    Diluted                                                                      $1.55                                                                                      $1.58


    WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING:

    Basic                                                           119,743                                                                                       119,743

    Diluted                                                         121,734                                                                                       121,734


    During the first quarter of 2014, the
     Company recorded a pre-tax $14.4
     million gain on sale of a corporate
     aircraft. During the second quarter
     of 2014, the Company recorded pre-
     tax restructuring charges of $20.4
     million including a $14.3 million
     non-cash impairment of trademarks
     and store assets, severance charges
     of $3.7 million resulting from the
     elimination of specific staff in the
     golf area of its DICK'S stores and
     consolidation of DICK'S golf and Golf
     Galaxy corporate and administrative
     functions, and a $2.4 million write-
     down of excess golf inventories. The
     provision for income taxes for the
     aforementioned adjustments were
     calculated at 40%, which approximates
     the Company's blended tax rate.


                                                                           Fiscal 2013

                                                                 39 Weeks Ended November 2, 2013
                                                                 -------------------------------


                                   As Reported               Recovery of                 Asset Impairment
                                                             Previously                        Charge
                                                           Impaired Asset                                            Non-GAAP Total
                                   -----------            ---------------                ----------------            --------------

    Net sales                                  $4,265,755                                                $        -                 $         -        $4,265,755

    Cost of goods sold, including
     occupancy and distribution
     costs                           2,949,872                                       -                                    -           2,949,872
                                     ---------                                     ---                                  ---           ---------


    GROSS PROFIT                     1,315,883                                       -                                    -           1,315,883


    Selling, general and
     administrative expenses           983,382                                       -                              (7,881)             975,501

    Pre-opening expenses                18,736                                       -                                    -              18,736
                                        ------                                     ---                                  ---              ------


    INCOME FROM OPERATIONS             313,765                                       -                                7,881              321,646


    Interest expense                     2,081                                       -                                    -               2,081

    Other income                      (10,675)                                  4,342                                     -             (6,333)
                                       -------                                   -----                                   ---              ------


    INCOME BEFORE INCOME TAXES         322,359                                 (4,342)                                7,881              325,898


    Provision for income taxes         123,398                                       -                                3,152              126,550
                                       -------                                     ---                                -----              -------


    NET INCOME                                   $198,961                                                  $(4,342)                      $4,729           $199,348
                                                 ========                                                   =======                       ======           ========


    EARNINGS PER COMMON SHARE:

    Basic                                           $1.62                                                                                        $1.62

    Diluted                                         $1.58                                                                                        $1.59


    WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING:

    Basic                              122,942                                                                                          122,942

    Diluted                            125,766                                                                                          125,766


    During the first quarter of 2013, the
     Company determined that it would
     recover $4.3 million of its
     investment in JJB Sports, which it
     had previously fully impaired. There
     is no related tax expense as the
     Company reversed a portion of the
     deferred tax valuation allowance it
     had previously recorded for net
     capital loss carryforwards it did not
     expect to realize at the time its
     investment in JJB Sports was fully
     impaired. During the second quarter
     of 2013, the Company recorded a pre-
     tax $7.9 million non-cash impairment
     charge to reduce the carrying value
     of a corporate aircraft held for sale
     to fair market value. The provision
     for income taxes was calculated at
     40%, which approximates the Company's
     blended tax rate.

Adjusted EBITDA

Adjusted EBITDA should not be considered as an alternative to net income or any other generally accepted accounting principles measure of performance or liquidity. Adjusted EBITDA, as the Company has calculated it, may not be comparable to similarly titled measures reported by other companies. Adjusted 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, capital investments and certain non-recurring, infrequent or unusual items.




                                13 Weeks Ended
                                --------------

                   November 1,                 November 2,
                           2014                        2013
                           ----                        ----

                            (dollars in thousands)

    Net income                       $49,211                          $49,977

    Provision
     for income
     taxes               30,347                               31,115

    Interest
     expense                858                                  696

     Depreciation
     and
     amortization        41,229                               37,123
                                                             ------

    EBITDA                          $121,645                         $118,911
                                    ========                         ========


    % increase
     in EBITDA               2%



                              39 Weeks Ended

                   November 1,                 November 2,
                           2014                        2013
                           ----                        ----

                          (dollars in thousands)

    Net income                      $188,662                         $198,961

    Provision
     for income
     taxes              117,550                              123,398

    Interest
     expense              2,230                                2,081

     Depreciation
     and
     amortization       131,000                              113,437

    EBITDA                          $439,442                         $437,877
                                    ========                         ========

    Less:
     Recovery
     of
     previously
     impaired
     asset                    -                             (4,342)

    Less: Gain
     on sale of
     asset             (14,428)                                   -

    Add: Golf
     restructuring
     charges              6,043                                    -
                          -----                                  ---

    Adjusted
     EBITDA, as
     defined                        $431,057                         $433,535
                                    ========                         ========


    % decrease
     in
     adjusted
     EBITDA                (1)%

Reconciliation of Gross Capital Expenditures to Net Capital Expenditures

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


                                  39 Weeks Ended
                                  --------------

                  November 1,                November 2,
                         2014                        2013
                         ----                        ----

                              (dollars in thousands)

    Gross capital
     expenditures               $(271,257)                       $(196,862)

    Proceeds from
     sale-
     leaseback
     transactions           -                                 -

    Deferred
     construction
     allowances        87,898                             37,125

    Construction
     allowance
     receipts               -                                 -
                          ---                               ---

    Net capital
     expenditures               $(183,359)                       $(159,737)
                                 =========                         =========

SOURCE DICK'S Sporting Goods, Inc.