Our continued profitable growth is being fueled by our three growth drivers, which are expansion of our store base, strengthening of our omni-channel capabilities, and development of our margin rate accelerators. Looking at our store growth, we opened four new Dick’s Sporting Goods stores in Q2 and in 2012 we expect to open approximately 38 Dick’s Sporting Goods stores. Our ecommerce business represented approximately 3% of total sales in Q2, with same-store sales increasing 34.6% over Q2 last year.

In Q2 we increased our merchandise margin by 29 basis points. As we move ahead we plan to generate continued margin growth with the three main drivers. One is to leverage our inventory management, another is to emphasize private brands and the third driver is to optimize our product mix. To strengthen our private brand platform we entered into an agreement this month to purchase the intellectual property and rights to the Field & Stream mark in the hunting, fishing, camping, and flannel categories. Upon completion, we expect this acquisition to give us the control and flexibility necessary to maximize and leverage the value of this popular brand. Lastly, we are successfully shifting our product mix to include more higher-margin products by increasing our focus on in-store specialty shops from Nike, Under Armour and The North Face as well as continuing to build our shared-service footwear deck in our new and remodeled stores.

As announced in our release this morning we have fully impaired the value of our investment in JJB. We continue to believe in this market thesis underlying our investment; however, since our investment and its public announce by JJB’s management, JJB’s performance has materially deteriorated from its expectations. The investment was structured to provide us with meaningful upside and to cap our downside. Accordingly we have no further funding obligations and will continue to monitor the situation.

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