Since many of Dick's Sporting Goods products are primarily used in the warm months, Dick's earnings are highly seasonal. Furthermore, Dick's Sporting Goods typically experiences greater sales during the fourth quarter holiday season. Thus, a stronger or weaker than normal holiday season can considerably help or hurt Dick's Sporting Goods. Since the holiday season in 2008 is predicted to be dismal for many retailers, Dick's Sporting Goods 2008 earnings may miss their targets.
Like most other retailers, Dick's is vulnerable to downturns in the economy, as consumers save more and spend less. Dick's struggled with the economy's downturn in 2008 as sales on net increased 11%, but comparable store sales decreased 3.8% and 7.4% at Dick's stores and Golf Galaxy stores, respectively during Q1 2008. Additionally, in Q3 2008, Dick's comparable store sales decreased 2.8% although its revenue increased 10% following the 2007 acquisition of Chick's.