Sportsman’s Guide Q3 Net Income Jumps 51%

The Sportsman's Guide, Inc. reported sales for the quarter quarter ended September 30, 2004 were $56.6 million, a 37% increase over the $41.2 million reported for the same period one year ago. SGDE reported net earnings of $1.1 million, and earnings of 20 cents per diluted share for the quarter, compared to $710,000, or 13 cents per fully diluted share, for the year-ago period.

For the nine months ended September 30, 2004, sales were $140.0 million, an increase of just under 14% when compared to the $123.0 million reported for the same period in 2003. The Company recorded net earnings of $3.0 million, or $0.57 per fully diluted share, for the first three quarters of the year, compared to net earnings of $2.3 million, or $0.44 per fully diluted share, for the first nine months ended September 30, 2003.

Company officials noted that the increase in sales for the third quarter of 2004 was due to the acquisition of The Golf Warehouse, TGW.com, on June 29, 2004 and increases in Internet-related sales for the Company's base business. Sales at the base business grew 8% and its Internet-related sales were in excess of 41% of total sales in the quarter, compared to approximately 36% of total sales for the same period in 2003.

Gregory R. Binkley, President and Chief Executive Officer of the Company, stated, “The strong results for the quarter were driven by two key factors. The first is our early summer acquisition of The Golf Warehouse. It performed extremely well in the period. In addition, we have also seen year over year improvements in sales and in Internet-related sales in our base business that are encouraging.”

Binkley went on to state, “The addition of TGW, with the majority of its sales generated through the Internet, has changed our Company's profile as we are now more of an on-line retailer than we were previously.”

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

                For The Three Months And Nine Months Ended
                       September 30, 2004 and 2003

                  (In thousands, except per share data)

                          Three months ended        Nine months ended
                             September 30,             September 30,
                           2004         2003         2004         2003
  Sales                  $56,554      $41,213     $140,009     $123,003
  Cost of sales           40,139       28,672       97,329       84,321
    Gross profit          16,415       12,541       42,680       38,682
  Selling, general and
   administrative
   expenses               14,564       11,424       37,839       35,056
    Earnings from
     operations            1,851        1,117        4,841        3,626
  Interest expense           168           --          168           --
  Miscellaneous income
   (expense), net             --          (10)          80          (14)
    Earnings before
     income taxes          1,683        1,107        4,753        3,612
  Income tax expense         614          397        1,720        1,299
    Net earnings          $1,069         $710       $3,033       $2,313

  Net earnings per share:
    Basic                   $.23         $.15         $.64         $.49
    Diluted                 $.20         $.13         $.57         $.44