Sportsman’s Guide Doubles Q2 Profits on 9% Sales Gain

The Sportsman's Guide, Inc. sales for the second quarter were $38.0 million, an increase over the $34.8 million reported for the same period one year ago. The Company reported net earnings of $646,000, and earnings of $0.12 per fully diluted share for the quarter, slightly above its most recent guidance. This compares to $317,000, or $0.06 per share, reported for the three months ended June 30, 2002.

For the six months ended June 30, 2003, sales were $81.8 million, an increase over the $76.3 million reported for 2002. The Company recorded net earnings of $1.6 million, or $0.31 per fully diluted share, for the year, compared to net earnings of $1.1 million, or $0.22 per share, for the first six months ended June 30, 2002.

Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “Our strong second quarter results were due in large part to increasing Internet-related sales, which reached 36.5 percent of total sales in the quarter, compared to just under 30 percent of total sales for the same period in 2002. This is an all time record with respect to Internet-related sales as a percentage of total sales.”

In addition to the higher sales levels, the increase in margins from numerous product categories also contributed to the higher level of profitability. These categories included camping, optics, automotive and hardware products. Total catalog circulation for the quarter was 9.2 million, compared to 8.8 million for the same period in 2002.

                      
                         The Sportsman's Guide, Inc.
                     Consolidated Statements of Earnings
                                 (Unaudited)

                  For The Three Months And Six Months Ended
                            June 30, 2003 and 2002

                    (In thousands, except per share data)

                                       Three months ended   Six months ended
                                            June 30,            June 30,
                                         2003     2002       2003     2002
    Sales                               $38,041  $34,791    $81,790  $76,256
    Cost of sales                        26,097   24,240     55,649   52,402
      Gross profit                       11,944   10,551     26,141   23,854
    Selling, general and administrative
     expenses                            10,902   10,057     23,632   22,144
      Earnings from operations            1,042      494      2,509    1,710
    Miscellaneous income (expense), net     (33)       4         (4)      33
      Earnings before income taxes        1,009      498      2,505    1,743
    Income tax expense                      363      181        902      642
      Net earnings                         $646     $317     $1,603   $1,101

    Net earnings per share:
      Basic                                $.14     $.07       $.34     $.23
      Diluted                              $.12     $.06       $.31     $.22