Sportsman’s Guide Posts 8% Sales Gain; Income Jumps 50%

The Sportsman's Guide, Inc. reported results for the third quarter ended September 30, 2005 that, with net sales of $61.5 million, compared to $57.0 million for last year's third quarter. The nearly 8% increase in consolidated net sales, year over year for the third quarter, was the result of sales growth at both The Golf Warehouse and The Sportsman's Guide. For the nine months ended September 30, 2005, net sales were $189.9 million, a 34% increase over the $141.4 million reported for the first three quarters of 2004.

Net earnings for the quarter were $2.2 million, or 26 cents per fully diluted share, a 50% increase over the $1.4 million, or 17 cents per fully diluted share, reported for the same period in 2004. For the first three quarters of 2005, net earnings were $7.0 million, or 84 cents per fully diluted share, compared to $3.9 million, or 49 cents per fully diluted share for the first nine months of 2004, an increase of more than 70%. The earnings per share numbers for 2004 have been restated to reflect the company's change in accounting policy for Buyer's Club revenues announced in June of this year and adjusted to reflect the 3-for-2 stock split, distributed April 15, 2005.

Gregory R. Binkley, president and CEO of the company, stated, “We had another record quarter due to a continuation of the positive trends that have been affecting our business the last few years. We saw net sales growth at both TGW and TSG; with TGW's growth especially strong. We also continued to generate high levels of Internet-related sales, as they once again totaled nearly 60% of total catalog and Internet sales for the quarter.”

Binkley also noted that the recently completed quarter is the first where the results are comparable with those of the previous year given that the 2004 third quarter also included the results of The Golf Warehouse, acquired June 29, 2004.

              The Sportsman's Guide, Inc. and Subsidiaries
                     Consolidated Statements of Earnings
                                 (UNAUDITED)

                  For The Three Months And Nine Months Ended
                         September 30, 2005 and 2004

                    (In thousands, except per share data)

                             Three months ended        Nine months ended
                                September 30,             September 30,
                            2005          2004         2005         2004
                                       (Restated)                (Restated)
    Net sales              $61,549      $57,039     $189,905     $141,403
    Cost of sales           42,060       40,139      130,938       97,329
      Gross profit          19,489       16,900       58,967       44,074
    Selling, general and
     administrative
     expenses               15,983       14,564       47,931       37,839
      Earnings from
       operations            3,506        2,336       11,036        6,235
    Interest expense           (67)        (168)        (213)        (168)
    Other income
     (expense), net             23           --          182           80
      Earnings before
       income taxes          3,462        2,168       11,005        6,147
    Income tax expense       1,273          791        4,052        2,222
      Net earnings          $2,189       $1,377       $6,953       $3,925

    Net earnings per share:
      Basic                   $.30         $.20         $.97         $.55
      Diluted                 $.26         $.17         $.84         $.49