Big 5 Sporting Goods Corporation saw third quarter net sales increase 3.6% to $231.3 million from $223.3 million for the same period last year. Same store sales increased 0.1% for the third quarter.

Gross profit for the fiscal 2007 third quarter increased to $82.0 million from $77.7 million in the third quarter of the prior year. The company's gross profit margin increased to 35.5% in the fiscal 2007 third quarter from 34.8% in the third quarter of the prior year. The gross margin improvement was driven by an increase of approximately 30 basis points in product margins and a $1.0 million decrease in distribution center costs resulting from operational efficiencies realized in the company's new distribution center.

Selling and administrative expenses as a percentage of net sales were 26.8% in the fiscal 2007 third quarter compared to 26.4% in the third quarter of last year.

Net income for the fiscal 2007 third quarter was $8.4 million, or 37 cents per diluted share, versus net income of $7.8 million, or 34 cents per diluted share, for the third quarter of fiscal 2006.

“Our third quarter performance exceeded the upper end of our earnings guidance and demonstrated the strength of our business model,” said Steven G. Miller, the Company's chairman, president and CEO. “While we continued to face a challenging consumer environment throughout the quarter, with particular headwinds in certain of our markets, our team did a tremendous job of overcoming these challenges and producing solid gains in the bottom line. Our same store sales comped positively and we meaningfully increased product margins during the quarter, while realizing significant distribution center savings from improved operating efficiencies.”

Mr. Miller continued, “As we enter the fourth quarter, macro-economic conditions remain challenging and we expect a continuation of this environment for the remainder of the year. However, we believe we have a strong merchandising and promotional plan in place to drive business through the important holiday season.”

For the thirty-nine week period ended September 30, 2007, net sales increased $23.9 million, or 3.7%, to $666.2 million from net sales of $642.3 million in the same period last year. Same store sales increased 0.2% in the first 39 weeks of fiscal 2007 versus the same period last year. Net income was $21.9 million, or 97 cents per diluted share, for the first 39 weeks of fiscal 2007, compared to net income of $21.2 million, or 93 cents per diluted share, in the same period last year.

Quarterly Cash Dividend

The company's Board of Directors has declared a quarterly cash dividend of 9 cents per share of outstanding common stock, which will be paid on December 14, 2007 to stockholders of record as of November 30, 2007.

Share Repurchases and New Repurchase Program

During the 2007 third fiscal quarter and fourth fiscal quarter through October 31, 2007, the company repurchased 586,425 shares of its common stock for a total expenditure of $12.2 million. Since the inception of the company's share repurchase program, which had an initial authorization of $15.0 million, the company has repurchased a total of 666,535 shares, for a total expenditure of $13.9 million. The company has $1.1 million of authorization remaining under this program.

The company's Board of Directors also has authorized an additional share repurchase program for the purchase of up to $20.0 million of the company's common stock. Under the authorization, the company may purchase shares from time to time in the open market or in privately negotiated transactions in compliance with the applicable rules and regulations of the Securities and Exchange Commission. However, the timing and amount of such purchases, if any, would be at the discretion of management, and would depend on market conditions and other considerations.

“Our business model continues to generate significant free cash flow, and we have used that cash flow, together with borrowings under our credit facility, to deliver value to our stockholders by paying our quarterly dividend and repurchasing our stock,” said Mr. Miller. “We are pleased to announce the authorization of a new repurchase program today, as we believe the program confirms and strengthens our commitment to enhancing stockholder value over the long term.”

Guidance

For the fiscal 2007 fourth quarter, the company expects to realize same store sales growth in the low single-digit negative to low single-digit positive range and earnings per diluted share in the range of 36 cents to 46 cents. For the fiscal 2007 full year, the company expects to realize same store sales growth in the low single-digit negative to low single-digit positive range and earnings per diluted share in the range of $1.33 to $1.43. Fourth quarter and full-year guidance assumes that sales will continue to be challenged by macro-economic issues affecting the consumer environment, and full-year 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 overall growth and financial reporting initiatives.

Store Openings

During the fiscal 2007 third quarter, the company opened six new stores, including one relocation, bringing its total store count as of the end of the third quarter to 353 stores. The company has opened three new stores during the fiscal 2007 fourth quarter to date. The company anticipates opening seven additional stores before the end of the year, for a total of 20 new stores, net of relocations, during fiscal 2007.

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

                                  13 Weeks Ended            39 Weeks Ended
                             September 30, October 1, September 30, October 1,
                                 2007         2006        2007          2006

    Net sales                    $231,308   $223,276      $666,161   $642,263
    Cost of goods sold,
     buying and occupancy,
     excluding depreciation
     and amortization shown
     separately below             149,289    145,592       429,036    414,440

    Gross profit                   82,019     77,684       237,125    227,823

    Operating expenses:
      Selling and administrative   62,066     58,961       183,539    174,924
      Depreciation and amortization 4,554      4,069        12,926     12,473

      Total operating expenses     66,620     63,030       196,465    187,397
      Operating income             15,399     14,654        40,660     40,426
      Interest expense              1,582      1,709         4,504      5,407
      Income before income taxes   13,817     12,945        36,156     35,019
      Income taxes                  5,438      5,120        14,247     13,820
      Net income                   $8,379     $7,825       $21,909    $21,199
      Dividends per share declared  $0.09      $0.09         $0.27      $0.25

    Earnings per share:
      Basic                         $0.37      $0.34         $0.97      $0.93
      Diluted                       $0.37      $0.34         $0.97      $0.93

    Weighted-average shares of
     common stock outstanding:
      Basic                        22,406     22,692        22,591     22,701
      Diluted                      22,492     22,794        22,693     22,802