| [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|-----------------------------------------------------------------------------------------|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------|------------------------------------------------------------------------------------------|

| Sport Chalet, Inc.                                                                                                              |                                 |
|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
| (Exact name of registrant as specified in its charter)                                                                          |                                 |
|                                                                                                                            |                                 |
| Delaware                                                                                                                        | 95-4390071                           |
| (State or other jurisdiction ofincorporation or organization)                                                                   | (I.R.S. Employer Identification No.) |
|                                                                                                                            |                                 |
| One Sport Chalet Drive, La Cañada, CA  91011(Address of principal executive offices)   (Zip Code) |
|                                                                                                                            |                                 |
| (818) 949-5300(Registrant’s telephone number, including area code)                                                        |
|                                                                                                                            |                                 |

----

|                              |                                                              |   | Page   |
|-----------------------------------|-------------------------------------------------------------------|--------|--------|
| Item 1.                           | Financial Statements                                              |   | 3      |
|                              |                                                              |   |   |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition |   |   |
|                              | and Results of Operations                                         |   | 10     |
|                              |                                                              |   |   |
| Item 3.                           | Quantitative and Qualitative Disclosures About Market Risk        |   | 19     |
|                              |                                                              |   |   |
| Item 4T.                          | Controls and Procedures                                           |   | 19     |
|                              |                                                              |   |   |
|                              |                                                              |   |   |
| PART II – OTHER INFORMATION |
|                              |                                                              |   |   |
|                              |                                                              |   |   |
| Item 1.                           | Legal Proceedings                                                 |   | 20     |
|                              |                                                              |   |   |
| Item 1A.                          | Risk Factors                                                      |   | 20     |
|                              |                                                              |   |   |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds       |   | 20     |
|                              |                                                              |   |   |
| Item 3.                           | Defaults Upon Senior Securities                                   |   | 20     |
|                              |                                                              |   |   |
| Item 4.                           | [Removed and Reserved]                                            |   | 20     |
|                              |                                                              |   |   |
| Item 5.                           | Other Information                                                 |   | 20     |
|                              |                                                              |   |   |
| Item 6.                           | Exhibits                                                          |   | 21     |

----

|                           |   | 13 weeks ended                       |   |
|--------------------------------|--------|--------------------------------------|--------|
|                           |   | June 27, 2010                        |   |   | June 28, 2009 |   |
|                           |   | (in thousands, except share amounts) |   |
| Net sales                      |   | $                                    | 79,687 |   |   | $ | 79,403 |   |
| Cost of goods sold, buying and |   |                                 |   |   |   |
| occupancy costs                |   |                                 | 57,147 |   |   |   | 58,413 |   |
| Gross profit                   |   |                                 | 22,540 |   |   |   | 20,990 |   |
|                           |   |                                 |   |   |   |   |   |   |
| Selling, general and           |   |                                 |   |   |   |   |   |   |
| administrative expenses        |   |                                 | 21,152 |   |   |   | 19,937 |   |
| Depreciation and amortization  |   |                                 | 2,639  |   |   |   | 3,456 |   |
| Loss from operations           |   |                                 | (1,251 | ) |   |   | (2,403 | ) |
|                           |   |                                 |   |   |   |   |   |   |
| Interest expense               |   |                                 | 692    |   |   |   | 581 |   |
| Loss before taxes              |   |                                 | (1,943 | ) |   |   | (2,984 | ) |
|                           |   |                                 |   |   |   |   |   |   |
| Income tax (benefit) provision |   |                                 | -      |   |   |   | - |   |
| Net loss                       |   | $                                    | (1,943 | ) |   | $ | (2,984 | ) |
|                           |   |                                 |   |   |   |   |   |   |
| Loss per share:                |   |                                 |   |   |   |   |   |   |
| Basic and diluted              |   | $                                    | (0.14  | ) |   | $ | (0.21 | ) |
|                           |   |                                 |   |   |   |   |   |   |
| Weighted average number of     |   |                                 |   |   |   |   |   |   |
| common shares outstanding:     |   |                                 |   |   |   |   |   |   |
| Basic and diluted              |   |                                 | 14,187 |   |   |   | 14,123 |   |

----

|                                                |   | June 27,                             |    |   | March 28, |   |
|-----------------------------------------------------|--------|--------------------------------------|---------|--------|-----------|--------|
|                                                |   | 2010                                 |    |   | 2010      |   |
|                                                |   | (Unaudited)                          |    |   |      |   |
| Assets                                              |   | (in thousands, except share amounts) |    |
| Current assets:                                     |   |                                 |    |   |      |   |
| Cash and cash equivalents                           |   | $                                    | 2,622   |   |      | $      | 2,906 |   |
| Accounts receivable, net                            |   |                                 | 2,923   |   |      |   | 2,403 |   |
| Merchandise inventories                             |   |                                 | 99,396  |   |      |   | 97,280 |   |
| Prepaid expenses and other current assets           |   |                                 | 950     |   |      |   | 1,235 |   |
| Income tax receivable                               |   |                                 | 2       |   |      |   | 12 |   |
| Total current assets                                |   |                                 | 105,893 |   |      |   | 103,836 |   |
|                                                |   |                                 |    |   |      |   |   |   |
| Fixed assets, net                                   |   |                                 | 32,457  |   |      |   | 34,873 |   |
| Total assets                                        |   | $                                    | 138,350 |   |      | $      | 138,709 |   |
|                                                |   |                                 |    |   |      |   |   |   |
| Liabilities and stockholders' equity                |   |                                 |    |   |      |   |   |   |
| Current liabilities:                                |   |                                 |    |   |      |   |   |   |
| Accounts payable                                    |   | $                                    | 25,235  |   |      | $      | 24,998 |   |
| Loan payable to bank                                |   |                                 | 50,413  |   |      |   | 45,290 |   |
| Salaries and wages payable                          |   |                                 | 2,844   |   |      |   | 3,972 |   |
| Other accrued expenses                              |   |                                 | 13,421  |   |      |   | 15,909 |   |
| Total current liabilities                           |   |                                 | 91,913  |   |      |   | 90,169 |   |
|                                                |   |                                 |    |   |      |   |   |   |
| Deferred rent                                       |   |                                 | 23,735  |   |      |   | 24,056 |   |
| Commitments and contingencies                       |   |                                 |    |   |      |   |   |   |
|                                                |   |                                 |    |   |      |   |   |   |
| Stockholders’ equity:                         |   |                                 |    |   |      |   |   |   |
| Preferred stock, $.01 par value:                    |   |                                 |    |   |      |   |   |   |
| Authorized shares - 2,000,000                       |   |                                 |    |   |      |   |   |   |
| Issued and outstanding shares – none          |   |                                 | -       |   |      |   | - |   |
| Class A Common Stock, $.01 par value:               |   |                                 |    |   |      |   |   |   |
| Authorized shares - 46,000,000                      |   |                                 |    |   |      |   |   |   |
| Issued and outstanding shares – 12,413,490 at |   |                                 |    |   |      |   |   |   |
| June 27, 2010 and 12,412,490 at March 28, 2010      |   |                                 | 124     |   |      |   | 124 |   |
| Class B Common Stock, $.01 par value:               |   |                                 |    |   |      |   |   |   |
| Authorized shares - 2,000,000                       |   |                                 |    |   |      |   |   |   |
| Issued and outstanding shares – 1,775,821 at  |   |                                 |    |   |      |   |   |   |
| June 27, 2010 and 1,770,821 at March 28, 2010       |   |                                 | 18      |   |      |   | 18 |   |
| Additional paid-in capital                          |   |                                 | 35,291  |   |      |   | 35,130 |   |
| Accumulated deficit                                 |   |                                 | (12,731 | )      |      |   | (10,788 | ) |
| Total stockholders’ equity                    |   |                                 | 22,702  |   |      |   | 24,484 |   |
| Total liabilities and stockholders’ equity    |   | $                                    | 138,350 |   |      | $      | 138,709 |   |

----

|                                             |   | 13 weeks ended |    |
|--------------------------------------------------|--------|----------------|---------|
|                                             |   | June 27, 2010  |    |   | June 28, 2009 |   |
|                                             |   | (in thousands) |    |
| Operating activities                             |   |           |    |   |   |   |
| Net loss                                         |   | $              | (1,943  | ) |   | $ | (2,984 | ) |
| Adjustments to reconcile net loss to net cash    |   |           |    |   |   |   |   |   |
| used in operating activities:                    |   |           |    |   |   |   |   |   |
| Depreciation and amortization                    |   |           | 2,639   |   |   |   | 3,456 |   |
| Share-based compensation                         |   |           | 149     |   |   |   | 91 |   |
| Changes in operating assets and liabilities:     |   |           |    |   |   |   |   |   |
| Accounts receivable                              |   |           | (520    | ) |   |   | (1,290 | ) |
| Merchandise inventories                          |   |           | (2,116  | ) |   |   | (11,273 | ) |
| Prepaid expenses and other current assets        |   |           | 285     |   |   |   | 972 |   |
| Income tax receivable                            |   |           | 10      |   |   |   | 1,001 |   |
| Accounts payable                                 |   |           | 237     |   |   |   | 2,327 |   |
| Salaries and wages payable                       |   |           | (1,128  | ) |   |   | (1,431 | ) |
| Other accrued expenses                           |   |           | (2,488  | ) |   |   | (4,015 | ) |
| Deferred rent                                    |   |           | (321    | ) |   |   | (387 | ) |
| Net cash used in operating activities            |   |           | (5,196  | ) |   |   | (13,533 | ) |
|                                             |   |           |    |   |   |   |   |   |
| Investing activities                             |   |           |    |   |   |   |   |   |
| Purchase of fixed assets                         |   |           | (223    | ) |   |   | (208 | ) |
| Net cash used in investing activities            |   |           | (223    | ) |   |   | (208 | ) |
|                                             |   |           |    |   |   |   |   |   |
| Financing activities                             |   |           |    |   |   |   |   |   |
| Proceeds from bank borrowing                     |   |           | 89,337  |   |   |   | 99,405 |   |
| Repayments of bank borrowing                     |   |           | (84,214 | ) |   |   | (88,756 | ) |
| Checks drawn in excess of cash balances          |   |           | -       |   |   |   | 3,092 |   |
| Proceeds from exercise of stock options          |   |           | 12      |   |   |   | - |   |
| Net cash provided by financing activities        |   |           | 5,135   |   |   |   | 13,741 |   |
|                                             |   |           |    |   |   |   |   |   |
| (Decrease) increase in cash and cash equivalents |   |           | (284    | ) |   |   | - |   |
| Cash and cash equivalents at beginning of period |   |           | 2,906   |   |   |   | 290 |   |
| Cash and cash equivalents at end of period       |   | $              | 2,622   |   |   | $ | 290 |   |
|                                             |   |           |    |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information |   |           |    |   |   |   |   |   |
| Cash paid during the period for:                 |   |           |    |   |   |   |   |   |
| Interest                                         |   | $              | 649     |   |   | $ | 598 |   |

----

| 1.  | Description of Business and Basis of Presentation |
|----------|---------------------------------------------------|

| 2.  | Liquidity |
|----------|-----------|

----

|   | · | Continuing to improve the functionality and efficiency of sportchalet.com by leveraging our business partners’ significant knowledge in their areas of expertise. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing to refine the way each store is merchandised to best fit to its individual store market area and customer base through information provided by our Action Pass customer relationship program. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increasing utilization of our growing Action Pass membership to create ever more effective marketing vehicles. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Continuing to refine and expand our Team Sales Division by attracting new universities and leagues as customers, while focusing on continuously improving profitability through more efficient manufacturing and embellishment processes. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Recommitment to ensuring we have the best trained merchandise and specialty services experts throughout our Company. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing toward the full utilization of our information systems to understand our business better and to improve efficiency in both inventory and overall operating costs. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.  | Income Taxes |
|----------|--------------|

----

| 4.  | Loss per Share |
|----------|----------------|

|                                     |   | 13 weeks ended                       |   |
|------------------------------------------|--------|--------------------------------------|--------|
|                                     |   | June 27, 2010                        |   |   | June 28, 2009 |   |
|                                     |   | (in thousands, except share amounts) |   |
| Net loss                                 |   | $                                    | (1,943 | ) |   | $ | (2,984 | ) |
|                                     |   |                                 |   |   |   |   |   |   |
| Weighted average number of common shares |   |                                 | 14,187 |   |   |   | 14,123 |   |
|                                     |   |                                 |   |   |   |   |   |   |
| Basic and diluted loss per share         |   | $                                    | (0.14  | ) |   | $ | (0.21 | ) |

| 5. | Loan Payable to Bank |
|----|----------------------|

----

| 6.  | Share-based Compensation |
|----------|--------------------------|

|                 |   | 13 weeks ended |   |
|----------------------|--------|----------------|--------|
|                 |   | June 27, 2010  |   |   | June 28, 2009 |   |
|                 |   | (in thousands) |   |   |   |   |
| Compensation expense |   | $              | 239    |   |   | $ | 91 |   |
| Income tax benefit   |   | $              | -      |   |   | $ | - |   |

|                    |   | 13 weeks ended |   |
|-------------------------|--------|----------------|--------|
|                    |   | June 27, 2010  |   |   | June 28, 2009 |   |
| Risk-free interest rate |   |           | 2.4    | % |   |   | 2.1 | % |
| Expected volatility     |   |           | 83.7   | % |   |   | 80.9 | % |
| Expected dividend yield |   |           | 0      | % |   |   | 0 | % |
| Expected life in years  |   |           | 10.0   |   |   |   | 7.5 |   |

|                             |   | Shares |      |   | Weighted Average Exercise Price |   | Weighted-Average Remaining Contractual Term (Years) |   |   | Aggregate Intrinsic Value (in 000's) |
|----------------------------------|--------|--------|-----------|--------|---------------------------------|--------|-----------------------------------------------------|--------|--------|--------------------------------------|
| Outstanding as of March 28, 2010 |   |   | 1,910,936 |   |                            | $      | 2.91                                                |   |   |                                 |   |   |
| Granted                          |   |   | 12,500    |   |                            |   | 2.66                                                |   |   |                                 |   |   |
| Exercised                        |   |   | (96,000   | )      |                            |   | 2.36                                                |   |   |                                 |   |   |
| Forfeited or expired             |   |   | (50,152   | )      |                            |   | 3.67                                                |   |   |                                 |   |   |
| Outstanding as of June 27, 2010  |   |   | 1,777,284 |   |                            | $      | 2.91                                                |   | 7.3    |                                 | $ |  274,394 |

----

| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------------|----------------------------------------------------------------------------------------------|

----

|   | · | Continuing to improve the functionality and efficiency of sportchalet.com by leveraging our business partners’ significant knowledge in their areas of expertise. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing to refine the way each store is merchandised to best fit to its individual store market area and customer base through information provided by our Action Pass customer relationship program. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increasing utilization of our growing Action Pass membership to create ever more effective marketing vehicles. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Continuing to refine and expand our Team Sales Division by attracting new universities and leagues as customers, while focusing on continuously improving profitability through more efficient manufacturing and embellishment processes. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Recommitment to ensuring we have the best trained merchandise and specialty services experts throughout our Company. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Continuing toward the full utilization of our information systems to understand our business better and to improve efficiency in both inventory and overall operating costs. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | 13 weeks ended |   |   |          |   |   |   |   |
|------------------------------------|--------|----------------|--------|--------|---------------|--------|--------|--------|--------|
|                               |   | June 27, 2010  |   |   | June 28, 2009 |   |   | Dollar |   |   | Percentage |   |
|                               |   | Amount         |   |   | Percent       |   |   | Amount |   |   | Percent |   |   | Change |   |   | Change |   |
| Net sales                          |   | $              | 79,687 |   |          |   | 100.0  | %      |   | $ | 79,403 |   |   |   | 100.0 | % |   | $ | 284 |   |   |   | 0.4 | % |
| Gross profit                       |   |           | 22,540 |   |          |   | 28.3   | %      |   |   | 20,990 |   |   |   | 26.4 | % |   |   | 1,550 |   |   |   | 7.4 | % |
| Selling, general and               |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| administrative expenses            |   |           | 21,152 |   |          |   | 26.5   | %      |   |   | 19,937 |   |   |   | 25.1 | % |   |   | 1,215 |   |   |   | 6.1 | % |
| Depreciation and amortization      |   |           | 2,639  |   |          |   | 3.3    | %      |   |   | 3,456 |   |   |   | 4.4 | % |   |   | (817 | ) |   |   | (23.6 | %) |
| Loss from operations               |   |           | (1,251 | )      |          |   | (1.6   | %)     |   |   | (2,403 | ) |   |   | (3.0 | %) |   |   | 1,152 |   |   |   | (47.9 | %) |
| Interest expense                   |   |           | 692    |   |          |   | 0.9    | %      |   |   | 581 |   |   |   | 0.7 | % |   |   | 111 |   |   |   | 19.1 | % |
| Loss before taxes                  |   |           | (1,943 | )      |          |   | (2.4   | %)     |   |   | (2,984 | ) |   |   | (3.8 | %) |   |   | 1,041 |   |   |   | (34.9 | %) |
| Income tax (benefit) provision     |   |           | -      |   |          |   | 0.0    | %      |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | * |   |
| Net loss                           |   |           | (1,943 | )      |          |   | (2.4   | %)     |   |   | (2,984 | ) |   |   | (3.8 | %) |   |   | 1,041 |   |   |   | (34.9 | %) |
|                               |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss per share:                    |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                  |   | $              | (0.14  | )      |          |   |   |   |   | $ | (0.21 | ) |   |   |   |   |   | $ | 0.07 |   |   |   | (35.2 | %) |
|                               |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Percentage change not meaningful. |   |           |   |   |          |   |   |   |   |   |   |

----

|                                  |   | 13 weeks ended |   |
|---------------------------------------|--------|----------------|--------|
|                                  |   | June 27, 2010  |   |   | June 28, 2009 |   |
|                                  |   | (in thousands) |   |
| Net loss                              |   | $              | (1,943 | ) |   | $ | (2,984 | ) |
| Depreciation and amortization         |   |           | 2,639  |   |   |   | 3,456 |   |
| Merchandise inventories               |   |           | (2,116 | ) |   |   | (11,273 | ) |
| Accounts payable                      |   |           | 237    |   |   |   | 2,327 |   |
| Other accrued expenses                |   |           | (2,488 | ) |   |   | (4,015 | ) |
| Other                                 |   |           | (1,525 | ) |   |   | (1,044 | ) |
| Net cash used in operating activities |   | $              | (5,196 | ) |   | $ | (13,533 | ) |

----

|                           |   | 52 weeks ended |   |
|--------------------------------|--------|----------------|--------|
|                           |   | June 27, 2010  |   |   | June 28, 2009 |   |
|                           |   | (in thousands) |   |
| Net loss                       |   | $              | (7,233 | ) |   | $ | (50,705 | ) |
| Income tax (benefit) provision |   |           | (9,139 | ) |   |   | 8,826 |   |
| Interest expense               |   |           | 2,873  |   |   |   | 2,119 |   |
| Depreciation and amortization  |   |           | 11,827 |   |   |   | 14,088 |   |
| Share-based compensation       |   |           | 678    |   |   |   | 373 |   |
| Non-cash impairment charge     |   |           | 10,935 |   |   |   | 10,730 |   |
| EBITDA                         |   | $              | 9,941  |   |   | $ | (14,569 | ) |

----

|                          |   | Payment due by period |    |
|-------------------------------|--------|-----------------------|---------|
|                          |   |                  |    |   | Less than |   |   |   |   |   |   |   |   | More than |   |
|                          |   | Total                 |    |   | 1 year |   |   | 2-3 year |   |   | 4-5 year |   |   | 5 years |   |
| Contractual obligations       |   | (in thousands)        |    |
| Operating leases (a)          |   | $                     | 195,319 |   |   | $ | 30,849 |   |   | $ | 61,088 |   |   | $ | 45,970 |   |   | $ | 57,412 |   |
| Employment contracts          |   |                  | 636     |   |   |   | 170 |   |   |   | 339 |   |   |   | 127 |   |   |   | - |   |
| Total contractual obligations |   | $                     | 195,955 |   |   | $ | 31,019 |   |   | $ | 61,427 |   |   | $ | 46,097 |   |   | $ | 57,412 |   |

| (a) Amounts include the direct lease obligations.  Other obligations required by the lease agreements such as contingent rent based on sales, common area maintenance, property taxes and insurance are not fixed amounts and, therefore, are not included.  The amount of the excluded expenses are: $11.5 million and $10.5 million for fiscal years 2010 and 2009, respectively.  Operating lease obligations reflect savings from lease modifications, assume "kick-out clauses" (as defined below) will be excercised and do not reflect potential renewals or replacements of expiring leases. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | We have a history of losses which could continue in the future. |
|--------|--------|-----------------------------------------------------------------|

|   | · | The limited availability under our revolving credit facility may result in insufficient working capital. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | The covenants in our revolving credit facility may limit future borrowings to fund our operations. |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | If our vendors do not provide sufficient quantities of products, our net sales and profitability could suffer. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | If we are unable to effectively manage and expand our alliances and relationships with selected suppliers of brand name products, we may be unable to effectively execute our strategy to differentiate ourselves from our competitors. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A downturn in the economy has affected consumer purchases of discretionary items, significantly reducing our net sales and profitability. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | No assurance can be given that we will be successful in reducing operating expenses and controlling costs in an amount sufficient to return to profitability. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We may need to record additional impairment losses in the future if our stores' operating performance does not improve. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Intense competition in the sporting goods industry could limit our growth and reduce our profitability. |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | Our future operations may be dependent on the availability of additional financing. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Because our stores are concentrated in the western portion of the United States, we are subject to regional risks. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | If we are unable to predict or react to changes in consumer demand, we may lose customers and our sales may decline. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | Failure to protect the integrity and security of our customers’ information could expose us to litigation and materially damage our standing with our customers. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | As a result of the current economic downturn, we have delayed opening new stores.  Continued growth is uncertain and subject to numerous risks. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If we lose key management or are unable to attract and retain talent, our operating results could suffer. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | Seasonal fluctuations in the sales of sporting goods could cause our annual operating results to suffer. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Our quarterly operating results may fluctuate substantially, which may adversely affect our business. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | Declines in the effectiveness of marketing could cause our operating results to suffer. |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | Problems with our information systems could disrupt our operations and negatively impact our financial results. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | We are controlled by our Founder and management, whose interests may differ from other stockholders. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | The price of our Class A Common Stock and Class B Common Stock may be volatile. |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Provisions in the Company's charter documents could discourage a takeover that stockholders may consider favorable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | We may be subject to periodic litigation that may adversely affect our business and financial performance. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | Changes in accounting standards and subjective assumptions, estimates and judgments related to complex accounting matters could significantly affect our financial results. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Terrorist attacks or acts of war may harm our business. |
|--------|--------|---------------------------------------------------------|

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|   | · | We rely on one distribution center and any disruption could reduce our sales. |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | We may pursue strategic acquisitions, which could have an adverse impact on our business. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Our comparable store sales will fluctuate and may not be a meaningful indicator of future performance. |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | A regional or global health pandemic could severely affect our business. |
|--------|--------|--------------------------------------------------------------------------|

|   | · | Global warming could cause erosion of both our Winter and Summer seasonal businesses over a long-term basis. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

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| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk. |
|---------------|-------------------------------------------------------------|

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| Item 1.  | Legal Proceedings. |
|---------------|--------------------|

| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------------|--------------------------------------------------------------|

| Item 3.  | Defaults Upon Senior Securities. |
|---------------|----------------------------------|

| Item 4. | [Removed and Reserved]. |
|---------|-------------------------|

| Item 5.  | Other Information. |
|---------------|--------------------|

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| Item 6.  | Exhibits. |
|---------------|-----------|

|   | 3.1 | Certificate of Incorporation restated as of November 4, 2009 (incorporated by reference to Exhibit 3.1 of the Company’s Form 10-Q for the quarter ended September 27, 2009) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | 3.2 | Bylaws of Sport Chalet, Inc. amended as of September 15, 2009 (incorporated by reference to Exhibit 3.2 of the Company’s Form 10-Q for the quarter ended September 27, 2009) |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  4.1 | Form of Certificate for Class A Common Stock (incorporated by reference to Exhibit 4.1 to the Company's Registration of Certain Classes of Securities on Form 8-A, filed on September 29, 2005) |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  4.2 | Form of Certificate for Class B Common Stock (incorporated by reference to Exhibit 4.1 to the Company's Registration of Certain Classes of Securities on Form 8-A, filed on September 29, 2005) |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-----------------------------------------------------------------------------------------------------------------------|

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|                                  | SPORT CHALET, INC. |                                        |
|---------------------------------------|--------------------|---------------------------------------------|
|                                  |               |                                        |   |
| DATE:   August 6, 2010 | By:                | /s/ Howard K. Kaminsky                      |   |
|                                  |               | Howard K. Kaminsky                          |   |
|                                  |               | Executive Vice President-Finance,           |   |
|                                  |               | Chief Financial Officer and Secretary       |   |
|                                  |               | (On behalf of the Registrant and as         |   |
|                                  |               | Principal Financial and Accounting Officer) |   |