Profile: Dick's Sporting Goods, Inc. (DKS)

Dick’s Sporting Goods, Inc. (Dick’s), incorporated in 1948, is a full-line sporting goods retailer that offers an assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of January 31, 2009, the Company operated 384 Dick’s Sporting Goods stores in 39 states, 89 Golf Galaxy stores in 31 states, and 14 Chick’s Sporting Goods stores in California. Dick’s carry a variety of brands, including Nike, North Face, Columbia, adidas, TaylorMade, Callaway and Under Armour, as well as private label products sold under names, such as Ativa, Maxfli, Tailgate Gear and Walter Hagen, and private brand products, such as its exclusive lines of Nike ACG, Slazenger, Umbro, Reebok, Field & Stream and adidas baseball merchandise, which are available only in the Company’s stores.

The Company’s stores contain five standalone specialty stores. A typical store has in-store specialty shops, including the Pro Shop, a golf shop with a putting green and hitting area, and video monitors featuring golf tournaments and instruction on the Golf Channel or other sources; the Footwear Center, featuring hardwood floors, a track for testing athletic shoes and a bank of video monitors playing sporting events; the Cycle Shop, designed to sell and service bikes, complete with a mechanics’ work area and equipment on the sales floor; the Sportsman’s Lodge for the hunting and fishing customer, designed to have the look of a bait and tackle shop, and Total Sports, a seasonal sports area displaying sports equipment and athletic apparel associated with specific seasonal sports, such as football and baseball. Its stores allow customers to test golf clubs in an indoor driving range, shoot bows in its archery range, or run on its footwear track.

Apparel

The apparel category consists of athletic apparel, outerwear and sportswear designed for a range of activities and performance levels, as well as apparel designed and fabricated for specific sports, in men’s, women’s and children’s assortments. Technical and performance specific apparel includes offerings for sports, such as golf, tennis, running, fitness, soccer, baseball, football, hockey, swimming, cycling and licensed products. Basic sportswear includes T-shirts, shorts, sweats and warm-ups.

Footwear

The Footwear Center, featuring hardwood floors and a track for testing athletic shoes, offers a selection of athletic shoes for running and walking, tennis, fitness and cross training, basketball and hiking. In addition, it also carries specialty footwear, including casual footwear, and a line of cleated shoes for baseball, football, soccer and golf. Other important categories within the footwear department are boots, socks and accessories.

Hardlines

The Company’s product lines include a selection of fitness equipment, including treadmills, elliptical trainers, stationary bicycles, home gyms, free weights and weight benches. A range of equipment and accessories are available for team sports, such as football, baseball, basketball, hockey, soccer, bowling and lacrosse. Family recreation offerings include lawn games and table games, such as ping-pong, foosball and air hockey. The Sportsman’s Lodge caters to the outdoorsman and includes an offering of equipment for hunting, fishing, camping and water sports. Hunting products include rifles, shotguns, ammunition, global positioning systems, hunting apparel, boots and optics, including binoculars and scopes, knives and cutlery, archery equipment and accessories. Fishing gear, such as rods, reels, tackle and accessories are offered along with camping equipment, including tents and sleeping bags. Equipment offerings for marine and water sports include navigational electronics, water skis, rafts, kayaks, canoes and accessories.

The Pro Shop includes an assortment of golf clubs and club sets, bags, balls, shoes, teaching aids and accessories. The Company carries a range of products featuring golf suppliers, such as TaylorMade, Callaway, Titleist, Cleveland and Nike Golf, as well as its exclusive brands, Walter Hagen, Slazenger and Acuity. Its Cycle Shop, which is designed to sell and service bicycles, complete with a mechanics’ work area, features a selection of bicycle motocross (BMX), all-terrain, freestyle, touring bicycles, scooters and skateboards. In addition, it also offers a range of cycling accessories, including helmets, bicycle carrier racks, gloves, water bottles, and repair and maintenance parts.