TSA Beats Q4 Guidance on 2.4% Comp-Sales Increase

The Sports Authority, Inc. net income for the fourth quarter was $29.8 million, or $1.10 per diluted share, compared with $25.3 million, or $0.96 per diluted share in the prior year's fourth quarter. This also beat previous EPS guidance of $1.07. Comparable store sales increased 2.4% for the fourth quarter and 1.5% for the full year. Total sales for the fourth quarter were $741.1 million compared with $713.8 million in the prior year's fourth quarter, an increase of $27.3 million, or 3.8%.

Merchandise inventories reduced $58.7 million (-9.9% on a per square foot basis) vs. the prior year end
Long-term debt reduced $69.2 million vs. the prior year end

Net income for the 52 weeks ended January 28, 2006 was $55.4 million, or $2.06 per diluted share, compared with net income of $33.5 million, or $1.27 per diluted share, including merger integration costs, in the prior year. Excluding the effect of after-tax merger integration costs of $13.2 million, or $0.50 per diluted share, net income for the prior year was $46.7 million, or $1.77 per diluted share.

Total sales for the fiscal year ended January 28, 2006 were $2.509 billion compared with $2.436 billion in the prior fiscal year, an increase of $73.5 million, or 3.0%. Comparable store sales for the fiscal year ended January 28, 2006 increased 1.5%.

The Company opened two new stores, relocated one store and closed one store during the fourth quarter to arrive at a total number of stores in operation as of January 28, 2006 of 398 stores in 45 states.

Doug Morton, Chief Executive Officer commented, “We exceeded our comparable sales expectations for the fourth quarter due to strong sales performances in active and outdoor apparel, fitness and team sports. The favorable sales combined with improved gross margins and continued expense controls resulted in earnings exceeding our previous guidance. Additionally, year end debt and inventory levels were significantly reduced versus the prior year end. Finally, I would like to thank all of our associates for their hard work and dedication in helping to deliver a successful quarter and fiscal year.”

On January 23, 2006 The Sports Authority, Inc. announced that it had entered into a definitive agreement to be acquired by an investor group led by Leonard Green & Partners, L.P. and including members of Sports Authority's senior management team, for $37.25 per share in cash.

Excluding the impact of the proposed acquisition by an investor group led by Leonard Green & Partners, L.P., for fiscal year 2006, the Company is forecasting comparable store sales to increase approximately 2% and diluted EPS between $2.35 and $2.40 based on an estimated 27.5 million diluted shares outstanding. This forecast includes the impact of a fifty-third week to be included in the Company's fourth fiscal quarter and the impact of expensing stock options in accordance with Financial Accounting Standards Board No. 123R. The Company expects to open twelve new stores and close three stores during the year.

                      The Sports Authority, Inc.
              Condensed Consolidated Statements of Income
       (Dollars in thousands, except share and per share data)
     ------------------------------------------------------------ 

                        13 Weeks Ended            52 Weeks Ended
                   ------------------------- -------------------------

                    January 28,  January 29,  January 28,  January 29,
                       2006         2005         2006         2005
                   ------------ ------------ ------------ ------------
Net sales          $   741,087  $   713,756  $ 2,509,330  $ 2,435,863
Cost of goods sold,
 buying, and
 occupancy             524,119      508,760    1,802,123    1,756,879
                   ------------ ------------ ------------ ------------
  Gross profit         216,968      204,996      707,207      678,984
  Gross profit %          29.3%        28.7%        28.2%        27.9%
Operating expenses:
  Selling, general
   and administrative
   expenses            163,525      157,540      593,797      579,776
  Selling, general
   and administrative
   expenses %             22.1%        22.1%        23.7%        23.8%
  Merger integration
   costs                     -            -            -       21,750
  Store pre-opening
   expenses                115          769        2,636        4,012
                   ------------ ------------ ------------ ------------
Operating income        53,328       46,687      110,774       73,446
Non-operating
 income (expense):
  Interest expense      (5,619)      (5,455)     (22,368)     (20,103)
  Other income, net      1,458          112        3,122        1,396
                   ------------ ------------ ------------ ------------
Income before
 income taxes           49,167       41,344       91,528       54,739
  Income tax 
   expense             (19,378)     (16,044)     (36,111)     (21,272)
                   ------------ ------------ ------------ ------------
Net income         $    29,789  $    25,300  $    55,417  $    33,467
                   ============ ============ ============ ============
Earnings per share:
  Basic            $      1.13  $      0.98  $      2.12  $      1.30
                   ============ ============ ============ ============
  Diluted          $      1.10  $      0.96  $      2.06  $      1.27
                   ============ ============ ============ ============
Basic weighted
 average shares
 outstanding        26,425,686   25,845,562   26,165,203   25,691,176
                   ============ ============ ============ ============
Diluted weighted
 average shares
 outstanding        27,017,673   26,442,288   26,869,823   26,412,279
                   ============ ============ ============ ============