Big 5 Doubles Q1 Net Income on 5.2% Comp Sales Gain

Big 5 Sporting Goods Corporation reported that net sales for the fiscal 2004 first quarter ended on March 28, 2004 increased 10.0% to $181.0 million from $164.5 million in the first quarter of 2003. Same-store sales increased 5.2% versus the first quarter last year, representing the company's 33rd consecutive quarterly increase in same store sales over comparable prior periods.

Net income, calculated in accordance with generally accepted accounting principles (“GAAP”), increased to $6.8 million, or 30 cents per diluted share, for the 2004 first quarter, compared with net income of $3.4 million, or 15 cents per diluted share, in the same period last year.

Net income for the 2003 first quarter included a charge of $875,000, net of taxes, associated with the redemption of $20.0 million principal amount of the company's 10.875% senior notes. Excluding this charge, net income for the 2003 first quarter was $4.3 million, or 19 cents per diluted share.

“We are pleased to report outstanding first quarter earnings results which meaningfully exceeded both our guidance and analysts' estimates,” said Steven G. Miller, Big 5's Chairman, President and Chief Executive Officer. “Our performance was driven by a 5.2% same store sales increase versus the first quarter of 2003, which represented our 33rd consecutive quarterly increase in same store sales. Once again, our same store performance was positive in each of our five geographic regions and for each of our three major merchandise categories — footwear, apparel and hard goods. The company also benefited from improved operating profit margins and significantly reduced interest costs during the quarter versus the first quarter of 2003. We believe we are well positioned to continue this strong performance into the second quarter and throughout the remainder of 2004.”

Big 5 reports net income and earnings per diluted share in accordance with GAAP and additionally on a pro forma basis to exclude certain effects of the company's partial senior note redemption (as described above). Big 5 uses this pro forma reporting internally to evaluate its operating performance without regard to certain financial effects of the 2003 partial senior note redemption and believes this presentation will provide investors with additional insight into its operating results. A reconciliation of the senior note redemption pro forma adjustments to GAAP appears in the financial statements portion of this release.

The company ended the fiscal 2004 first quarter operating 294 stores, opening three new stores since year-end, two of which were relocations. The company anticipates opening between 15 and 20 net new stores in fiscal 2004.

Big 5 expects to realize same store sales growth in the low to mid-single- digit range for the second fiscal quarter of 2004, resulting in earnings per diluted share in the range of 34 cents to 36 cents.

For the 2004 fiscal year, the company expects same store sales growth in the low to mid-single-digit range, resulting in earnings per diluted share of $1.55 to $1.61 which compares to previous guidance of $1.47 to $1.53 per diluted share. Both the second quarter and full year estimate of earnings per diluted share exclude two cents per diluted share, which will be recorded in the second quarter, related to a charge associated with a redemption of $15.0 million principal amount of the company's 10.875% senior notes. Fiscal 2004 will include 53 weeks for accounting purposes, with the extra week being included in the company's fourth quarter results. This additional week should add approximately 1.75% to fiscal 2004 sales versus fiscal 2003, but should not have a material impact on earnings results for the fourth quarter or year.

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

                                  As Reported                Pro Forma
                                 13 Weeks Ended         13 Weeks Ended (1)
                        March 28, 2004   March 30, 2003   March 30, 2003

  Net sales                $181,005         $164,517         $164,517
  Cost of goods sold,
   buying and occupancy     115,366          106,665          106,665
  Gross profit               65,639           57,852           57,852

  Selling and
   administrative            49,580           45,122           45,122
  Depreciation and
   amortization               2,791            2,516            2,516

  Operating income           13,268           10,214           10,214
  Premium and unamortized
   financing fees related
   to redemption of debt         --            1,483               --
  Interest expense, net       1,936            2,974            2,974

  Income before
   income taxes              11,332            5,757            7,240
  Income tax                  4,533            2,360            2,968

  Net income available
   to common stockholders    $6,799           $3,397           $4,272

  Earnings per share:
    Basic                     $0.30            $0.15            $0.19

    Diluted                   $0.30            $0.15            $0.19