Dick's Sporting Goods 2009 Annual Report Download - page 4

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DISCIPL
In last year’s letter to our shareholders, I indicated we would be
very focused on liquidity issues as we in the United States and those
around the world worked through the most severe financial crises
since the Great Depression. We executed our liquidity strategy and
tactics to support this initiative with great success.
We continued to eliminate unproductive inventory from our system.
In 2009, our quarterly inventories were below 2008 levels on a square
foot basis by 9.7%, 5.5%, 8.6%, and 0.4% respectively. We postponed
and reduced the scope of capital projects that we felt would have
little impact on our 2009 operations. Our team also reduced variable
expenses as sales continued similar deterioration from the fourth
quarter of 2008 through the second quarter of 2009. During the year,
we repurchased our $172.5 million of convertible notes and ended
the year once again with no outstanding borrowings under our
$440 million line of credit. As of year end, we increased our cash
balance by $151 million, ending the year with $226 million versus
$75 million in 2008. Taking into account the repurchase of our
convertible notes, we improved our net cash position by $324 million.
In 2009, sales increased on a consolidated basis by 6.8% over 2008
to $4.4 billion. While we ended the year with a negative 1.4% in
consolidated comparable store sales, the consolidated comparable
store sales in the third and fourth quarters increased 1.9% and 2.5%,
respectively. The improvement of sales in the second half of 2009 led
DEAR FELLOW
SHAREHOLDERS
2 Dick’s Sporting Goods, Inc. | 2009 Annual Report