Sportsman’s Guide Q1 Income Up 75% on 44% Sales Gain

The Sportsman's Guide, Inc. reported results for the quarter ended March 31, 2005 that, with respect to net sales, were above most recent guidance and, with respect to fully diluted earnings per share, were at the high end of that guidance.

Net sales for the company's first quarter were $64.3 million, compared with $44.6 million reported for the same period in 2004. The quarter over quarter 44.2% increase in consolidated net sales was due in large part to the acquisition of The Golf Warehouse (“TGW”) in June of 2004 and net sales increasing 12% at The Sportsman's Guide (“TSG”). The increase at TSG was largely the result of increased Internet sales.

Net earnings for the quarter were $2.1 million, or 26 cents per fully diluted share, a 79.6% increase over the $1.2 million, or 15 cents per fully diluted share, reported for the same period in 2004. The per share calculations for the most recent period have been adjusted to reflect the company's recent 3-for-2 stock split, distributed to shareholders on April 15, 2005. Without the effect of the split, fully diluted earnings per share for the quarter ended March 31, 2005 would have been 39 cents per share, compared to 22 cents per share for the same period in 2004.

Gregory R. Binkley, president and chief executive officer of the company, stated, “We had a very strong first quarter due to a number of factors. We saw strong net sales at both TGW and TSG. TSG's double digit sales growth was particularly gratifying and was due to our success in generating higher levels of Internet-related sales. The increase in total net sales and in the percentage of Internet-related sales is also the result of the continued strong performance of TGW. The impact of these factors pushed consolidated Internet-related sales to over 50% of total catalog and Internet sales for the very first time in our history.”

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

                            For the quarters ended
                           March 31, 2005 and 2004

                    (In thousands, except per share data)

                                                        For the quarters
                                                         ended March 31,
                                                       2005           2004
    Net sales                                        $64,326        $44,594
    Cost of sales                                     44,544         30,466
      Gross profit                                    19,782         14,128
    Selling, general and administrative expenses      16,472         12,346
      Earnings from operations                         3,310          1,782
    Interest expense                                     (64)            --
    Miscellaneous income, net                             68             42
      Earnings before income taxes                     3,314          1,824
    Income tax expense                                 1,218            657
      Net earnings                                    $2,096         $1,167

    Net earnings per share:
      Basic                                             $.29          $ .16
      Diluted                                           $.26          $ .15

    Weighted average common and common equivalent
     shares outstanding:
      Basic                                            7,107          7,130
      Diluted                                          8,066          8,052