Golf Galaxy’s 2Q: Same-store sales off 11%
Monday, August 24, 2009
Dick’s Sporting Goods reported second-quarter sales increased 3.7 percent, but added that comparable store sales, which included Golf Galaxy locations, declined.
For the period, sales reached $1.1 billion, due primarily to the opening of new stores and the addition of e-commerce sales. However, consolidated same-store sales declined 4.1 percent; it included a 3.2 percent decrease in Dick’s Sporting Goods stores and an 11.1 percent decline in 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, Dick’s chairman and CEO. “In addition, with higher sales and better than anticipated operating leverage, Golf Galaxy performed better than originally expected.”
In the first two quarters of 2009, the Pittsburgh-based company 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 Aug. 1, 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.
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