Oshman's Sporting Goods Inc (AMEX:OSH) announced results for its second quarter and first six months of fiscal 2000 ended July 29, 2000.

Total sales for the second quarter of fiscal 2000 were $78.3m compared with $76.3m in the prior year's second quarter. Comparable store sales during the quarter increased 5.1 per cent.

The company had net income of $2.3m, or $.39 per share, calculated on a diluted share basis, for the second quarter of fiscal 2000 compared to a net loss of $1m, or $.17 per share, during the prior year's second quarter.

Total sales for the first six months of fiscal 2000 were $152.9m compared to $147.6m for the same period in the prior year. Comparable store sales for the six months increased 6.6 per cent.

The company had net income of $11.6m, or $1.96 per diluted share, in the first six months of fiscal 2000 compared to a net loss of $1.5m, or $.26 per share, in the prior year's first six months.

There were no unusual items in the second quarter. However, the results for the first six months of the current year include a first quarter $6.8m gain on the sale of an owned property in Los Angeles, Calif. The company also recorded additional reserves for closing stores and a write-off of assets no longer in use during the first quarter. These charges totaled approximately $468,000. In addition, the company has converted from the retail method of accounting for inventory to the cost method. This accounting change resulted in a cumulative gain of $972,000 in the first quarter.

Alvin N. Lubetkin, president and chief executive officer of Oshman's, said: "Our second quarter results represent another important step forward in producing consistently profitable results through the execution of our strategies. We earned a profit of $.39 per share as against last year's loss of $.17, and excluding unusual items, a first half profit of $.75 per share versus last year's loss of $.26.

"Sales continued to be an important profit driver with comparable store increases of 5.1 per cent. The growth came from most areas of the country and from a number of merchandise categories. Footwear continued to be a leader for us, enhanced by our High Impact selling format, and many hard-line categories were also strong.

"Our debt has dropped by 65.9 per cent this year, driven by our inventory reduction efforts as well as our profitability. Our net worth has grown by 31.3 per cent since the beginning of the year, and our debt/equity ratio now stands at 26.8 per cent compared to over 100 per cent at the beginning of the year.

Oshman's currently operates 56 sporting goods specialty stores including 42 SuperSports USA stores and 14 traditional stores. The company's SuperSports USA stores are located primarily in medium to large metropolitan areas across the United States, offering high quality name brand and private label equipment and sportswear.


OSHMAN'S SPORTING GOODS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JULY 29, 2000 AND JULY 31, 1999
(UNAUDITED)
(in thousands except for per share amounts)

THREE MONTHS ENDED SIX MONTHS ENDED
2000 1999 2000 1999
------ ------ ------- ------
Net Sales $78,285 $76,274 $152,947 $147,648
Income (loss) before
income taxes and
cumulative effect
of change in
accounting method
for inventory 2,496 (1,010) 11,100 (1,476)
Income taxes 170 4 484 35
---------- ---------- --------- ---------
Net income (loss)
before cumulative
effect of change
in accounting
method for
inventory 2,326 (1,014) 10,616 (1,511)
Cumulative effect
of change in
accounting method
for inventory -- -- 972 --
Net income (loss) $2,326 $(1,014) $11,588 $(1,511)
========== ========== ========= =========
Earnings (loss) per
share before
cumulative effect
of change in
accounting method
for inventory
Basic earnings
(loss) per share $.40 $(.17) $1.83 $(.26)
========== ========== ========= =========
Diluted earnings
(loss) per share $.39 $(.17) $1.79 $(.26)
========== ========== ========= =========
Cumulative effect
of change in
accounting method
for inventory
Basic earnings
(loss) per share $ -- $ -- $.17 $ --
========== ========== ========= =========
Diluted earnings
(loss) per share $ -- $ -- $.17 $ --
========== ========== ========= =========
Net earnings (loss)
Basic earnings
(loss) per share $.40 $(.17) $2.00 $(.26)
========== ========== ========= =========
Diluted earnings
(loss) per share $.39 $(.17) $1.96 $(.26)
========== ========== ========= =========
Weighted average
shares 5,755 5,830 5,784 5,830
Dilutive effect of
stock options 173 -- 138 --
---------- ---------- --------- ---------
Diluted weighted
average shares
outstanding 5,928 5,830 5,922 5,830
========== ========== ========= =========
Same store sales
increase (decrease) 5.1% (1.5)% 6.6% (.8)%
========== ========== ========= =========
Number of stores at
end of period:
SuperSports USA
stores 42 42

Traditional stores 14 17
---------- ----------
Total 56 59
========== ==========


OSHMAN'S SPORTING GOODS INC.
CONSOLIDATED BALANCE SHEETS
JULY 29, 2000, JANUARY 29, 2000 AND JULY 31, 1999
BALANCE SHEET HIGHLIGHTS
(in thousands)

JULY 29, 2000 JAN. 29, 2000 JULY 31, 1999
------------- ------------- -------------
Assets (UNAUDITED) (UNAUDITED)
Current Assets
Cash and cash equivalents 1,076 321 290
Accounts receivable, less
allowance of $88 July 00,
Jan 00 and July 99 1,927 1,750 1,413
Merchandise inventories 85,630 94,157 101,094
Prepaid expenses and other 2,114 466 2,752
------- ------- -------
Total current assets 90,747 96,694 105,549
Net property, plant
and equipment 33,728 35,963 34,892
Other assets 155 8 229
------- ------- -------
124,630 132,665 140,670
======= ======= =======
Liabilities and
Stockholders' Equity
Current Liabilities
Current maturities of
long-term obligations 73 58 17
Trade accounts payable 33,572 30,094 40,039
Accrued liabilities 21,741 20,998 17,836
Store closing reserve 846 1,044 693
------- ------- -------
Total current liabilities 56,232 52,194 58,585
Long term obligations 12,773 37,463 36,565
Other noncurrent liabilities 7,887 6,643 7,036
Stockholders' equity 47,738 36,365 38,484
------- ------- -------
124,630 132,665 140,670
======= ======= =======