Sports Authority Announces Second Quarter 2005 Results; Reports Diluted EPS of $0.53, Exceeding Expectations by $0.04; Company R

The Sports Authority, Inc. (NYSE:TSA) today announced
results for its second fiscal quarter ended July 30, 2005.

   --  Diluted EPS of $0.53 vs. previous guidance of $0.47 - $0.49

   --  Comparable store sales increase of 0.2%

   --  Raises full year diluted EPS guidance from $1.90 - $1.97 to
        $1.96 - $2.01

   Net income for the second quarter was $14.2 million, or $0.53 per
diluted share, compared with net income of $6.8 million, or $0.26 per
diluted share, including merger integration costs, in the prior year's
second quarter. Excluding the effect of after-tax merger integration
costs of $5.1 million, or $0.19 per diluted share, net income for the
prior year's second quarter was $11.9 million, or $0.45 per diluted
share.
   Total sales for the second quarter were $617.0 million compared
with $605.0 million in the prior year's second quarter, an increase of
$12.0 million, or 2.0%. Second quarter comparable store sales for the
Company increased 0.2%.
   Net income for the 26 weeks ended July 30, 2005 was $22.2 million,
or $0.83 per diluted share, compared with net income of $10.9 million,
or $0.41 per diluted share, including merger integration costs, in the
prior year's comparable period. Excluding the effect of after-tax
merger integration costs of $10.4 million, or $0.39 per diluted share,
net income for the prior year's 26 weeks was $21.3 million, or $0.80
per diluted share.
   Total sales for the 26 weeks ended July 30, 2005 were $1.21
billion compared with $1.18 billion in the prior year's comparable
period, an increase of $31.2 million, or 2.7%. Comparable store sales
for the 26 weeks ended July 30, 2005 increased 1.0%.
   The Company opened one store and closed two stores during the
second quarter to arrive at a total number of stores in operation as
of July 30, 2005 of 392 stores in 45 states.
   Doug Morton, Chief Executive Officer commented, "We exceeded
earnings expectations for the second quarter driven by improvements in
gross margin and effective management of our operating expenses. We
were pleased with the sales performance of several key categories
including active apparel and fitness, however, the impact on our top
line performance was greater than expected due to our decision not to
repeat certain promotional events. This decision also resulted in an
improved gross margin rate and higher gross margin dollars, which
contributed to the favorable EPS performance. In addition, we reduced
quarter end debt by $45 million compared to second quarter last year,
and reduced inventory by $33 million, or 6.6% on a per square foot
basis, over the comparable period last year."

   Guidance for Fiscal Year 2005

   For the third quarter of fiscal 2005, the Company is forecasting a
comparable store sales increase of approximately 1% to 2%, total sales
of approximately $565.0 million and diluted EPS of $0.09, based on
26.8 million diluted shares outstanding in the quarter. The Company
expects to open five new stores and relocate two stores during the
third fiscal quarter.
   For fiscal year 2005, the Company is forecasting comparable store
sales to increase approximately 1.5%. The Company also stated that it
is raising its fiscal year 2005 diluted EPS guidance to $1.96 to
$2.01, based on an estimated 26.7 million diluted shares outstanding,
compared to its previous guidance of $1.90 to $1.97. The Company
expects to open approximately thirteen new stores, relocate four
stores and close seven stores during the year.

   Non-GAAP Financial Measures

   To supplement our condensed consolidated statements of operations
presented on a basis in accordance with accounting principles
generally accepted in the United States of America ("GAAP"), we have
disclosed additional non-GAAP measures of net income and earnings per
share adjusted to exclude merger integration costs we believe
appropriate to enhance an overall understanding of our financial
performance (see income statement tables following). These adjustments
to our GAAP results are made with the intent of providing a more
complete understanding of the underlying operational results. These
non-GAAP measures have been reconciled to the most comparable GAAP
measure as required under SEC rules regarding the use of non-GAAP
financial measures. The presentation of this additional information is
not meant to be considered in isolation or as a substitute for net
income or diluted earnings per share prepared in accordance with GAAP.
   The Sports Authority, headquartered in Englewood, CO, is one of
the nation's largest full-line sporting goods retailers offering a
comprehensive high-quality assortment of brand name sporting apparel
and equipment at competitive prices. As of July 30, 2005, The Sports
Authority operated 392 stores in 45 states under The Sports
Authority(R), Gart Sports(R), Sportmart(R) and Oshman's(R) names. The
Company's e-tailing websites, located at thesportsauthority.com,
gartsports.com, sportmart.com and oshmans.com, are operated by GSI
Commerce, Inc. under license and e-commerce agreements. In addition, a
joint venture with AEON Co., Ltd. operates "The Sports Authority"
stores in Japan under a licensing agreement.

   (tables to follow)

   This announcement contains, in addition to historical information,
certain forward-looking statements that involve risks and
uncertainties. Actual results could differ materially from those
currently anticipated as a result of a number of factors, including
risks and uncertainties discussed in The Sports Authority's filings
with the Securities and Exchange Commission. Those risks include,
among other things, the possibility that the Company's independent
auditors may identify additional issues or other considerations while
they complete their review of the Company's financial statements,
rapidly changing accounting rules, regulations and interpretations,
the competitive environment in the sporting goods industry in general
and in the specific market areas of the Company, consumer confidence,
changes in discretionary consumer spending, changes in costs of goods
and services and economic conditions in general, and in the companies'
specific market areas, unseasonable weather and those risks generally
associated with the integration of the companies. The Company assumes
no obligation to update any forward-looking statements as a result of
new information or future events or developments.
-0-
*T
                      The Sports Authority, Inc.
              Condensed Consolidated Statements of Income
        (Dollars in thousands, except share and per share data)

----------------------------------------------------------------------

                           13 Weeks Ended          26 Weeks Ended
                       ----------------------- -----------------------

                        July 30,    July 31,    July 30,    July 31,
                          2005        2004        2005        2004
                       ----------- ----------- ----------- -----------
Net sales                $617,034    $605,025  $1,208,265  $1,177,065
Cost of goods sold,
 buying, and occupancy    442,985     436,707     873,358     849,442
                       ----------- ----------- ----------- -----------
     Gross profit         174,049     168,318     334,907     327,623
     Gross profit %          28.2%       27.8%       27.7%       27.8%
Operating expenses:
     Selling, general
      and
      administrative
      expenses            144,952     143,636     287,115     282,881
     Selling, general
      and
      administrative
      expenses %             23.5%       23.7%       23.8%       24.0%
     Integration costs          -       8,419           -      16,977
     Store pre-opening
      expenses                471         758       1,178       1,681
                       ----------- ----------- ----------- -----------
Operating income           28,626      15,505      46,614      26,084
Non-operating income
 (expense):
     Interest              (5,345)     (4,838)    (10,841)     (9,126)
     Other income             215         423         865         944
                       ----------- ----------- ----------- -----------
Income before income
 taxes                     23,496      11,090      36,638      17,902
     Income tax expense    (9,281)     (4,325)    (14,472)     (6,982)
                       ----------- ----------- ----------- -----------
Net income                $14,215      $6,765     $22,166     $10,920
                       =========== =========== =========== ===========
Earnings per share:
     Basic                  $0.55       $0.26       $0.85       $0.43
                       =========== =========== =========== ===========
     Diluted                $0.53       $0.26       $0.83       $0.41
                       =========== =========== =========== ===========
Basic weighted average
 shares outstanding    26,050,048  25,696,137  25,962,964  25,548,588
                       =========== =========== =========== ===========
Diluted weighted
 average shares
 outstanding           26,774,677  26,469,345  26,682,016  26,435,375
                       =========== =========== =========== ===========

Reconciliation of GAAP measures to pro forma, non-GAAP measures:
----------------------------------------------------------------

Results of operations for the 13 and 26 weeks ended July 31, 2004
include merger integration costs. In order to present comparable
results year over year, the following table provides a reconciliation
of GAAP basis net income to pro forma net income excluding these
costs, and including income tax expense at effective tax rates.

Income before income
 taxes as reported                    $11,090                 $17,902
    Integration costs                   8,419                  16,977
                                   -----------             -----------
Pro forma income before
 income taxes                          19,509                  34,879
     Income tax expense at
      effective tax rates              (7,609)                (13,603)
                                   -----------             -----------
Pro forma net income                  $11,900                 $21,276
                                   ===========             ===========
Pro forma earnings per
 share:
     Basic                              $0.46                   $0.83
                                   ===========             ===========
     Diluted                            $0.45                   $0.80
                                   ===========             ===========
Basic weighted average
 shares outstanding                25,696,137              25,548,588
                                   ===========             ===========
Diluted weighted
 average shares
 outstanding                       26,469,345              26,435,375
                                   ===========             ===========

                      The Sports Authority, Inc.
                 Condensed Consolidated Balance Sheets
                        (Dollars in thousands)

----------------------------------------------------------------------

                                    July 30,   January 29,  July 31,
                                      2005        2005        2004
                                   ----------- ----------- -----------
ASSETS

Current assets:
     Cash and cash equivalents        $31,623     $24,838     $30,535
     Merchandise inventories          738,380     728,853     771,444
     Other current assets             134,838     128,969     165,092
                                   ----------- ----------- -----------
          Total current assets        904,841     882,660     967,071
Property and equipment, net           280,169     256,312     244,312
Other long-term assets                293,714     312,209     287,077
                                   ----------- ----------- -----------
               Total assets        $1,478,724  $1,451,181  $1,498,460
                                   =========== =========== ===========

LIABILITIES AND STOCKHOLDERS'
 EQUITY

Current liabilities:
     Accounts payable                $303,901    $339,492    $349,612
     Other current liabilities        176,256     187,650     178,237
                                   ----------- ----------- -----------
          Total current
           liabilities                480,157     527,142     527,849
Long-term debt                        344,429     305,383     389,815
Other long-term liabilities           138,773     133,647     120,286
                                   ----------- ----------- -----------
          Total liabilities           963,359     966,172   1,037,950
                                   ----------- ----------- -----------
          Total stockholders'
           equity                     515,365     485,009     460,510
                                   ----------- ----------- -----------
               Total liabilities
                and stockholders'
                equity             $1,478,724  $1,451,181  $1,498,460
                                   =========== =========== ===========
*T