Dick's Sporting Goods 2008 Annual Report Download - page 5

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In total, our overall sales increased 6% to $4.1 billion driven b
y
the addition of 43 Dick’s
S
porting
G
oods stores, 1
0
G
olf
G
alaxy stores, and 15
C
hick’s
S
porting
G
ood’s stores,
which were included for a full year of sales followin
g
our acquisition of the stores in
November 2007. Despite a 4.8
%
decline in our full year comparable sales, we were able
to end the year with no borrowin
g
s under our $440 million line of credit facility and
reduce our average borrowings during the year by 20
%
.
To accomplish this, we had to be proactive and acknowled
g
e that we were in a very
di
ff
erent world. We worked with both our valued branded suppliers as well as our
overseas manufacturin
g
partners to reduce our inventory. At the end of the year, our
inventory was down 1
3
.9
%
on a consolidated basis and down 12.7
%
for Dick’s Sporting
Goods stores only. Our team was able to accom
p
lish this monumental feat while still
i
ncreas
i
ng our merchand
i
se marg
i
n by 16 bas
i
s po
i
nts and ma
i
nta
i
n
i
ng strong relat
i
onsh
i
ps
with our key vendors.
O
ur inventory level and the quality of that inventory allowed us to
be in a position to take advanta
g
e of off-price opportunities from our suppliers and deliver
great promot
i
onal values to our customers
.
O
ur growth for the foreseeable future should be viewed as organic; although, we may look
at opportunistic acquisitions as they become available. We ended the year with
3
84 Dick’s
Sportin
g
Goods stores, 89 Golf Galaxy stores, and 14 Chick’s Sportin
g
Goods stores.
During the year, we added 4
3
Dick’s Sporting Goods stores, approximately
3
5
%
of which
were in new markets while the balance helped fi ll in existin
g
markets.
J
effre
y
R. Hennion
E
x
ecu
tiv
e
Vi
ce
Pr
es
i
de
nt
&
C
hief Marketing Offi cer
L
ee J. Belitsk
y
Senior Vice President –
D
istribution
&
Transportation
K
athryn L.
S
utter
Se
ni
o
r Vi
ce
Pr
es
i
de
nt –
H
uman Resource
s
E
dward W. Stack
C
hairman
,
C
hief Executive
O
ffi ce
r
&
President
J
ose
p
h H.
S
chmidt
E
xecutive Vice President of O
p
erations
&
C
hief
O
perating
O
ffi ce
r
G
wendolyn K. Mant
o
E
x
ecu
tiv
e
Vi
ce
Pr
es
i
de
nt
&
C
hief Merchandisin
g
Offi cer
M
att
h
ew
J
.
Ly
nc
h
Se
ni
o
r Vi
ce
Pr
es
i
de
nt
&
C
hief Information Offi cer
T
imoth
y
E. Kullma
n
E
xecutive Vice President
,
F
inance
,
Administration
&
C
hief Financial Offi cer
2008 MANAGEMENT TEAM
( left to right )
NE DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT 3