Big 5 Cuts Guidance on First Quarterly Comp Decrease in Over Eleven Years

Big 5 Sporting Goods Corporation said same store sales declined 0.2% for the fiscal 2007 second quarter, representing its first quarterly decrease in same store sales in over eleven years. Net sales increased $6.0 million, or 2.9%, to $217.8 million from net sales of $211.8 million for the second quarter of fiscal 2006. The Company now expects earnings per diluted share for the fiscal 2007 second quarter to be in the range of 23 cents to 26 cents, compared to previously issued earnings guidance of 25 cents to 33 cents per diluted share.

The revised second quarter earnings guidance reflects sales at the low end of the Company's previously issued sales guidance range and product margins in-line with the fiscal 2006 second quarter. Fiscal 2007 second quarter earnings guidance compared to the prior year reflects lower distribution center expenses offset by a reduction in inventory cost capitalization and higher administrative expenses to support the Company's financial reporting initiatives.

“As we announced with our first quarter results, second quarter sales began to soften in the second half of April,” said Steven G. Miller, the Company's Chairman, President and Chief Executive Officer. “The macro-economic environment remained challenging and continued to affect results throughout the quarter. With a slight increase in promotional activity, we produced positive same store sales in May and June, but those sales increases were not enough to offset the weakness in April.

“We are very proud of our outstanding track record and our positive same store sales streak, which came to an end after 45 consecutive quarters of growth amid a challenging consumer environment,” continued Mr. Miller. “While we are certainly taking a hard look at our operation for ways in which we might be able to improve both our top and bottom line in the current environment, we remain confident in the consistency and effectiveness of our overall business model.”

The Company expects to report second quarter results during the first week of August, 2007. At that time, the Company expects to provide guidance for the fiscal 2007 third quarter and revised guidance for the fiscal 2007 full year.