The Sportsman's Guide Changes Accounting for Buyer's Club Member Fees to Adjust Timing of Revenue Recognition; 2005 First Quarte

The Sportsman's Guide Changes Accounting for Buyer's Club Member
Fees to Adjust Timing of Revenue Recognition; 2005 First Quarter EPS Increases
By $0.02
Company Will Restate Results with No Change to Earnings Per Share for the Past
Two Annual Periods; No Cash Flow Impact; All Recent Trends with Respect to Net
Sales and Earnings Growth Remain Intact 


SOUTH ST. PAUL, Minn., June 24  /PRNewswire-FirstCall/ -- The Sportsman's
Guide, Inc. (NASDAQ:SGDE) announced today that it will change its accounting
for Buyer's Club membership fees and restate certain of the Company's
previously issued consolidated financial statements. The restatement will
increase net earnings for the quarters ended March 31, 2005 and 2004 by
$161,000, or $0.02 per diluted share, and $141,000, or $0.01 per diluted share,
respectively. The restatement will also increase net earnings by approximately
$2,000 and $35,000 for the years ended December 31, 2004 and 2003,
respectively, with no impact on diluted earnings per share in either period.

Gregory R. Binkley, President and Chief Executive Officer of the Company,
commented, "This change is the result of comments we received from the
Securities and Exchange Commission arising from their review of our 2004 Annual
Report on Form 10-K and it only impacts our timing of revenue recognition of
the Buyer's Club membership fees. Based on our discussions with the SEC, we
have determined that our membership fees were analogous to refundable fees for
services and should be deferred and recognized in income on a straight-line
basis over the membership term. Under our previous accounting policy we
recognized a portion of the club fees in an amount equal to the discount earned
by the members on actual product shipments."

The change in the Company's revenue recognition policy related to the Buyer's
Club membership fees, when compared to the Company's previous policy, will tend
to delay the recognition of fee income especially in the fourth quarter with
the first three quarters of the next fiscal year benefiting from the change.

"While the impact of the change for the last several annual periods is not
material, we are restating previously issued consolidated financial statements
because the effects of the accounting change to certain past quarterly periods
are more significant and we have included a schedule showing such with this
release. We believe all of our recent trends with respect to revenue and
earnings growth remain intact in all material respects and this accounting
change will have no impact on our cash flows in the past or future periods,"
Binkley concluded.

For further information with respect to this press release and the information
herein, interested parties are invited to review the Company's SEC filings
related to this matter which will be posted on the Company's investor relations
website http://www.sportsmansguideir.com/ .

The Sportsman's Guide is an Internet and catalog retailer offering value-
priced outdoor gear and general merchandise, with a special emphasis on outdoor
clothing, outdoor equipment, golf apparel and equipment and footwear. The
Company sells through both Internet web sites and catalogs. The Company's web
sites include http://www.sportsmansguide.com/ , http://www.tgw.com/ and
http://www.bargainoutfitters.com/ .

This release contains forward looking statements which are subject to change
based on various important factors, including but not limited to general
economic conditions, a changing market environment for the Company's products
and the market acceptance of the Company's catalogs, Internet sites and
offerings.

                       The Sportsman's Guide, Inc.
               Diluted EPS Impact of Financial Restatement


                                    Diluted Earnings Per Share*
                                  2004                      2003
                             As                        As
                          Reported     Restated     Reported     Restated

  First Quarter           $ 0.15       $ 0.16       $ 0.12       $ 0.14


  Second Quarter          $ 0.10       $ 0.16       $ 0.08       $ 0.13


  Third Quarter           $ 0.13       $ 0.17       $ 0.09       $ 0.13


  Fourth Quarter          $ 0.57       $ 0.46       $ 0.47       $ 0.38

  Year Ended
   December 31            $ 0.95       $ 0.95       $ 0.78       $ 0.78



* Quarterly diluted EPS may not add to annual diluted EPS due to differences in
average number of diluted shares outstanding for the various periods and
rounding.

  CONTACT: William P. Bartkowski
           MeritViewPartners
           612.605.8616


DATASOURCE: The Sportsman's Guide



CONTACT:  William P. Bartkowski of MeritViewPartners, [phone] 



Web site:  http://www.sportsmansguide.com/

http://www.sportsmansguideir.com/

http://www.bargainoutfitters.com/

http://www.tgw.com/ 

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