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Dick's Sporting Goods Inc. Q1 2008 Earnings Call Transcript

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2008-05-22 14:04:23.0

Tags: Dick's Sporting Goods Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Matthew Fassler of Goldman Sachs please proceed.

Matthew Fassler - Goldman Sachs

Thanks a lot and good morning to you. A couple of questions; I guess I would like to be begin with what kind of assumptions you have about the macro backdrop and then any other factors driving sales as you think about your expectations for the reminder of the year and obviously I know you guys never use weather as an excuse of any sort; obviously parts of the first quarter were difficult, perhaps May is difficult. From that perspective if you could give us any color on how you think the weather has impacted our business that would be helpful.

Ed Stack

Matt I think that the weather has had some impact although I believe the majority of what the issue is today centers around the whole outlook of the economy and consumer sentiment in those concerns and I think that’s something that we are fighting right now and I can outline some of the things that we are planning to do because of this, whether it would be continuing to work with our vendors to provide exclusive and unique products for our consumers to looking at expenses that are not going to negatively impact our -- we don’t feel will negatively impact our business as we bring those expenses inline with sales expectations, so right now we think this is more the economic state of affairs that we are in versus the weather.

Matthew Fassler - Goldman Sachs

Can you give us some color added on product mix and how the cycle or other factors might have impacted that?

Ed Stack

Well, what exactly do you mean that?

Matthew Fassler - Goldman Sachs

I guess sources of relative strength and weakness within the top line.

Ed Stack

There was some strengths in some areas and weaknesses in others. The golf business was particularly weak, the base ball business has been -- was pretty good, the cleat business was really very good. We had a number of products that were exclusive and unique to us whether it was the Ortiz shoe that we put a marketing campaign around with using Ortiz in the commercial or the AROD shoe or what we did with the deal that surrounds Ryan Howard, so where we have been able to do promotions and marketing events such as that it’s been better. The fitness business has gotten a little better; we were really very pleased about that. The tackle business has been very difficult and that’s probably one area that I would say has been weather driven because of all the rain. A lot of the streams and rivers are high, they are running pretty fast; tough to fish, but again the majority of our issue is around the economic environment.

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