Big 5 Sporting Goods Corporation first quarter net sales increased $17.1 million, or 9.0%, to $207.2 million from net sales of $190.1 million for the first quarter of fiscal 2005. Same store sales increased 5.3% for the first quarter, representing the Company's 41st consecutive quarter of positive same store sales comparisons.

Gross profit increased 8.3% to $73.4 million from $67.8 million in the first quarter of the prior year. The Company's gross profit margin was 35.4% in the first quarter of fiscal 2006 versus 35.7% in the first quarter of the prior year. Margin comparisons were affected by higher distribution center costs over the prior year of $4.6 million, which were primarily driven by the completion of the Company's transition to, and the commencement of full-scale operations at, a new distribution center and increased trucking expenses reflecting higher gasoline prices. Gross profit comparisons for the first quarter also were affected by a $1.7 million increase in the current year of distribution center costs capitalized into inventory.

Selling and administrative expenses as a percentage of sales were unchanged from the prior year at 27.7% in the first quarter. Selling and administrative expenses this year were affected by a $1.6 million increase in legal and audit fees during the first quarter, resulting primarily from higher audit costs and higher accounting consultant costs related to Sarbanes-Oxley compliance work, and by a provision of $0.4 million (pre-tax), or $0.01 per diluted share, for the expensing of stock options. For the first quarter, the Company was able to leverage store-related expenses and advertising expenses, which declined 50 basis points and 30 basis points as a percentage of sales, respectively, versus the first quarter of last year.

Depreciation and amortization expense increased $1.0 million, or 27.6%, to $4.4 million for the first quarter, from $3.4 million for the same period last year. This higher expense was primarily due to the commencement of operations at the Company's new distribution center, and also reflected an increase in store count to 326 stores at the end of the first quarter of this year from 309 stores at the end of the first quarter last year. Interest expense for the first quarter of fiscal 2006 increased $0.7 million over the prior year, reflecting rising interest rates.

Net income for the first quarter was $5.9 million, or 26 cents per diluted share, including a charge of one penny per diluted share for the expensing of stock options, compared with net income of $6.4 million, or 28 cents per diluted share, for the first quarter of fiscal 2005.

First quarter fiscal 2006 pre-tax income includes approximately $1.8 million in distribution center transition costs that the Company anticipates will be non-recurring. Additionally, current year earnings reflect charges of approximately $0.7 million in audit and accounting consultant costs for Sarbanes-Oxley compliance work relating to fiscal 2005 that was performed during the first quarter of fiscal 2006. First quarter comparisons also were affected by the aforementioned $1.7 million increase in 2006 of distribution center costs capitalized into inventory. First quarter fiscal 2005 results included a charge of $0.5 million related to a flood loss at one of the Company's stores.

“We are pleased to report our strongest comp store sales performance over the last sixteen quarters,” said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. “Each of our major merchandise categories of footwear, hard goods and apparel posted gains, with exceptional strength in winter products driven by favorable winter weather comparisons, particularly over the last several weeks of the quarter. We are also pleased to now be fully operational in our new distribution center and we continue to realize increasing efficiencies as we gain experience in this substantially larger facility.”

“We feel very confident about our business and because of the improving cash flow in our operations, we are pleased to be able to deliver value to our stockholders through this dividend increase,” said Steven G. Miller. “We also believe that our share repurchase program provides us an additional means to enhance stockholder value over the long term.”

The Company expects to realize same store sales growth in the low to mid- single digit range for the second quarter of fiscal 2006, and earnings per diluted share for the second quarter in the range of $0.23 to $0.27. Second quarter earnings guidance includes a charge of approximately $0.02 per diluted share for the expensing of stock options. The Company continues to expect full-year same store sales growth in the low to mid-single digit range and full-year earnings per diluted share in the range of $1.23 to $1.33. Full- year earnings guidance includes a charge of approximately $0.06 per diluted share for the expensing of stock options. Second quarter and full-year earnings guidance reflects significantly higher trucking expense resulting largely from higher gasoline prices, as well as higher distribution center expenses in connection with the operation of a substantially larger facility. As previously announced, earnings guidance also reflects higher than normal audit-related expenses following the Company's previously completed restatement of prior period financials, higher interest costs resulting from rising interest rates and the expected impact of a significantly lower benefit from inventory cost capitalization than the Company experienced in fiscal 2005.

The Company opened two new stores during the first quarter of fiscal 2006, bringing its store count at the end of the first quarter to 326 stores. The Company has opened one new store in the second quarter to date. The Company anticipates opening a total of three new stores during the second quarter of fiscal 2006, and opening a total of approximately 20 new stores during fiscal 2006.



                       BIG 5 SPORTING GOODS CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                (In thousands, except earnings per share data)

                                                13 Weeks Ended  13 Weeks Ended
                                                 April 2, 2006   April 3, 2005

    Net sales                                       $207,181        $190,099
    Cost of goods sold, buying and occupancy,
     excluding depreciation and amortization,
     shown separately below                          133,754         122,271
    Gross profit                                      73,427          67,828

    Selling and administrative                        57,392          52,651
    Depreciation and amortization                      4,400           3,448

    Operating income                                  11,635          11,729
    Interest expense                                   1,829           1,141

    Income before income taxes                         9,806          10,588
    Income tax                                         3,863           4,174

    Net income                                        $5,943          $6,414


    Earnings per share:
      Basic                                            $0.26           $0.28

      Diluted                                          $0.26           $0.28

    Shares used to calculate earnings per share:
      Basic                                           22,702          22,678

      Diluted                                         22,787          22,813