1156388--3/16/2006--BIG_5_SPORTING_GOODS

related topics

{stock, price, share}

{product, market, service}

{customer, product, revenue}

{operation, natural, condition}

{competitive, industry, competition}

{stock, price, operating}

{condition, economic, financial}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{personnel, key, retain}

{system, service, information}

{acquisition, growth, future}

{cost, operation, labor}

{regulation, change, law}

The terms of our financing agreement impose operating and financial restrictions on us, which may impair our ability to respond to changing business and economic conditions. If we are unable to successfully implement our controlled growth strategy or manage our growing business, our future operating results could suffer. Because our stores are concentrated in the western United States, we are subject to regional risks. If we lose key management or are unable to attract and retain the talent required for our business, our operating results could suffer. Our hardware and software systems are vulnerable to damage that could harm our business. If our suppliers do not provide sufficient quantities of products, our net sales and profitability could suffer. Disruptions at shipping ports at which our products are imported could prevent us from timely distribution and delivery of inventory, which could reduce our sales and profitability. All of our stores rely on a single distribution center into which we have only recently transitioned. Any disruption or other operational difficulties at this new distribution center could reduce our net sales or increase our operating costs. Recently enacted securities laws and regulations are likely to increase our costs. Increased costs or declines in the effectiveness of print advertising could cause our operating results to suffer. Risks Related to Our Industry A downturn in the economy may affect consumer purchases of discretionary items, which could reduce our net sales. Seasonal fluctuations in the sales of sporting goods could cause our annual operating results to suffer significantly. Intense competition in the sporting goods industry could limit our growth and reduce our profitability. We may incur costs from litigation or increased regulation relating to products that we sell, particularly firearms. If we fail to anticipate changes in consumer preferences, we may experience lower net sales, higher inventory markdowns and lower margins. Terrorism and the uncertainty of war may harm our operating results. Risks Related to Investing in Our Common Stock The price of our common stock may be volatile. Substantial amounts of our common stock could be sold in the near future, which could depress our stock price. We cannot provide assurance that we will continue to declare dividends at all or in any particular amounts.

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1156388--3/16/2006--BIG_5_SPORTING_GOODS_CORP