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PITTSBURGH-Dick’s Sporting Goods Inc. on Tuesday posted quarterly results that were much higher than expected as revenue as new store openings offset a decline in same-store sales that was worst in its Golf Galaxy division. The locally headquartered retailer’s stock traded for as high as $20.56 on Tuesday but ended the day at $18.67, down 5.6% ($1.11) on double the average trading volume.

For the first quarter, which for Dick’s ended May 2, the retailer or sporting equipment, apparel and footwear, posted a profit of $10.2 million, or $0.09 a share, on a 5% increase in revenue to $959.7 million. That’s two cents and $45-million better than analysts’ average expectation, which typically do not consider one-time items in their estimates. Excluding one-time items, which this quarter included $4.4 million related to the integration of Chick’s Sporting Goods, earnings were $0.11 per share, four pennies higher than the average expectation.

Net sales increased 5.2% due primarily to the opening of new stores– nine Dick’s Sporting Goods stores and one Golf Galaxy store–and the addition of e-commerce sales. Same-store sales declined 6% thanks to a 19.7% decline at its Golf Galaxy stores. Same-store sales at Dick’s Sporting Goods stores declined 4.6% due in part to a decline in both total transactions (-2.5%) and sales per transaction(-2.1%), executives told analysts on the quarterly conference call.

The Company currently operates 394 Dick’s Sporting Goods stores in 39 states, 91 Golf Galaxy stores in 31 states, and 13 Chick’s Sporting Goods stores in California. Based on its first quarter results the company raised the low end of its annual earnings estimates and increased the expected same store sales for all of 2009.

Comparable store sales are expected to decrease between 9% and 6% compared to a 4.8% decrease in 2008. On a GAAP basis, the company expects to report consolidated earnings of approximately $0.85- to 0.97 per share in 2009 compared to a net loss of $0.36 per diluted share in 2008. The Non-GAAP expectation, which excludes estimated impairment charges for merger and integration costs, is for earnings of $1.15 per share.

The Company currently expects to open approximately 20 new Dick’s Sporting Goods stores, relocate one Dick’s Sporting Goods store and open one new Golf Galaxy store. In the second quarter the Company expects to open approximately four of the stores. The company’s CapEx for 2009 is $60 million, nearly half what it was in 2008.

Executives said the company is seeing better rents as of late because the lack of new development has it looking at second-generation facilities for its expansion needs. Upon further questioning Dicks president/COO Joe Schmidt told analysts the company is looking at a lot of former GI Joe’s stores in the Northwest and now plans to open more stores in 2010 than in 2009.

“We’ve been looking at existing real estate and finding favorable rent conditions,” Dicks president/COO Joe Schmidt told analysts.

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