The Sports Authority, Inc. reported that for the fourth quarter ended February 1, 2003, net income amounted to $52.9 million or $1.56 per diluted share versus $15.6 million or $0.47 per diluted share for the comparable period last year. The 2002 fourth quarter net income includes (1) a one-time tax benefit of $40.6 million or $1.20 per diluted share related to the reestablishment of certain deferred tax assets, partially offset by (2) $4.4 million or $0.13 per diluted share in exit costs and impairment charges. The 2001 fourth quarter net income included (1) $3.7 million or $0.11 per diluted share in exit costs and impairment charges partially offset by (2) a gain of $2.5 million or $0.08 per diluted share from the sale of securities.

Income before the non-routine credits and charges amounted to $16.7 million or $0.49 per diluted share for the fourth quarter of 2002 versus $16.8 million or $0.50 per diluted share for the comparable period of the prior year.

Sales for the fourth quarter of 2002 were $388.4 million versus $400.6 million for the fourth quarter of the prior year. Comparable store sales decreased 4.7%.

Marty Hanaka, Chairman and Chief Executive Officer commented, “In the fourth quarter, gross profit as a percentage of sales improved by 120 basis points, thereby mitigating the impact of soft comparable store sales caused by a weak economy, a short holiday shopping season and unfavorable weather patterns. In spite of these challenges, year-end inventory levels were well controlled, decreasing 3.9% per square foot. Also during fiscal 2002, total debt decreased by $59 million on top of a $70 million decrease in the prior year. This translates into a debt to capitalization percentage which has improved from 64% in 2000 to 54% in 2001 and 36% at fiscal 2002 year-end. This is a clear indication that we have been able to improve the overall financial strength of The Sports Authority even during these uncertain macro-economic and geo-political times.”

For fiscal 2002, net income, including non-routine credits and charges, amounted to $59.7 million or $1.75 per diluted share versus $12.4 million or $0.37 per diluted share for the preceding year. Income before non-routine credits and charges amounted to $23.5 million or $0.69 per diluted share in fiscal 2002, representing a 44% improvement over the $16.1 million or $0.48 per diluted share generated in fiscal 2001. Sales in fiscal 2002 amounted to $1.43 billion versus $1.42 billion in fiscal 2001. Comparable store sales for the year decreased 0.3%, primarily due to soft consumer demand during the second half of the fiscal year.

Early first quarter 2003 financial results suggest that restrained consumer spending and the severe winter weather patterns in the Northeast and Mid-Atlantic regions will dampen results. Absent a Middle Eastern conflict, first quarter fully diluted after-tax earnings are currently expected to be in the break-even range. Full fiscal 2003 after-tax earnings are currently estimated at $0.70 to $0.72 per diluted share. It should be noted that fiscal 2003 earnings will be subject to a federal income tax provision whereas fiscal 2002 earnings were not.

On February 20, 2003, The Sports Authority announced that it had entered into a definitive agreement with Gart Sports Company providing for a merger of equals. On a combined basis, The Sports Authority and Gart Sports Company generated sales of approximately $2.5 billion during the fiscal year ended February 1, 2003, operating 385 stores in 45 states nationwide.

THE SPORTS AUTHORITY, INC.
CONSOLIDATED SELECTED FINANCIAL INFORMATION
(Unaudited, Dollars in thousands, except share data)


                            13 Weeks Ended        52 Weeks Ended
                       ----------------------  -----------------------
                       February 1, February 2, February 1, February 2,
                          2003       2002         2003        2002
                       ----------- ----------- ----------- -----------
Sales                   $388,359    $400,577   $1,426,874  $1,415,552
 Comparable store sales
  % increase (decrease)     (4.7)%       1.0%        (0.3)%     (3.0)%
Cost of merchandise
 sold, including
 buying and occupancy
  costs                275,986.0     289,425    1,030,275   1,028,753
                       ----------- ----------- ----------- -----------
Gross profit           112,373.0     111,152      396,599     386,799
 % to sales                 28.9%       27.7%        27.8%       27.3%
License fees and
 rental income           1,473.0       1,101        4,804       3,446
Selling, general and
 administrative
 expenses               95,989.0      93,363      371,590     360,788
 % to sales                 24.7%       23.3%        26.0%       25.5%
Pre-opening
 expense                    45.0           5        1,734           5
Exit costs and
 impairment charges      4,419.0       3,698        4,419       6,353
                       ----------- ----------- ----------- -----------
 Operating income       13,393.0      15,187       23,660      23,099
Gain on sale of
 investment securities         -       2,538            -       2,538
Interest, net           (1,066.0)     (2,104)      (4,590)    (13,332)
                       ----------- ----------- ----------- -----------
Income before income
 taxes, extraordinary
 gain and cumulative 
 effect of accounting 
  change                12,327.0      15,621       19,070      12,305
Income tax
 benefit                40,599.0           -       40,599           -
                       ----------- ----------- ----------- -----------
Income before
 extraordinary gain
 and cumulative 
 effect of 
  accounting change     52,926.0      15,621       59,669      12,305
Extraordinary gain on
 debt repurchase, net
 of tax                        -           -            -         548
Cumulative effect of
 change in accounting
 principle                     -           -            -        (503)
                       ----------- ----------- ----------- -----------
 Net income              $52,926     $15,621      $59,669     $12,350