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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
FOR THE TRANSITION PERIOD FROM  ______  TO  ______

Commission File Number: 0-20736

Sport Chalet, Inc.(Exact name of registrant as specified in its charter)

|                                                                            |  |                                                
|--------------------------------------------------------------------------- |  | -----------------------------------------------
|Delaware
(State or other jurisdiction of
incorporation or organization)     |  | 95-4390071
(I.R.S. Employer Identification No.)
|                                                                           
|839 Houseman Street, La Canada, CA
(Address of principal executive offices) |  | 91011
(Zip Code)                               
|                                                                           
|(818) 790-2717
(Registrants telephone number, including area code)         |  |                                                

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [   ]

Number of shares outstanding of the registrants common stock as of October 30, 2002: 6,618,334

1



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TABLE OF CONTENTS



|                               |                                                                                                |  |  |  |  |  |  | 
|------------------------------ | ---------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|Part I  FINANCIAL INFORMATION
|                               | Item 1. Financial Statements.                                                                 
|                               | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
|                               | Item 3. Quantitative and Qualitative Disclosures About Market Risk                            
|                               | Item 4. Controls and Procedures.                                                              
|Part II  OTHER INFORMATION   
|                               | Item 1. Legal Proceedings.                                                                    
|                               | Item 2. Changes in Securities and Use of Proceeds.                                            
|                               | Item 3. Defaults Upon Senior Securities.                                                      
|                               | Item 4. Submission of Matters to a Vote of Securities Holders.                                
|                               | Item 5. Other Information.                                                                    
|                               | Item 6. Exhibits and Reports on Form 8-K.                                                     
|SIGNATURE                     
|EXHIBIT 10.1                  
|EXHIBIT 99.1                  



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SPORT CHALET, INC.

Index to Form 10-Q

|                               |  |         |  |                                                                                       |  |     
|------------------------------ |  | ------- |  | ------------------------------------------------------------------------------------- |  | ----
|                               |  |         |  |                                                                                       |  | Page
|                               |  |         |  |                                                                                       |  |     
|PART I  FINANCIAL INFORMATION
|                               |  | Item 1. |  | Financial Statements                                                                  |  | 3   
|                               |  | Item 2. |  | Managements Discussion and Analysis of Financial Condition
and Results of Operations |  | 8   
|                               |  | Item 3. |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 14  
|                               |  | Item 4. |  | Controls and Procedures                                                               |  | 14  
|PART II  OTHER INFORMATION   
|                               |  | Item 1. |  | Legal Proceedings                                                                     |  | 15  
|                               |  | Item 2. |  | Changes in Securities and Use of Proceeds                                             |  | 15  
|                               |  | Item 3. |  | Defaults Upon Senior Securities                                                       |  | 15  
|                               |  | Item 4. |  | Submission of Matters to a Vote of Securities Holders                                 |  | 15  
|                               |  | Item 5. |  | Other Information                                                                     |  | 15  
|                               |  | Item 6. |  | Exhibits and Reports on Form 8-K                                                      |  | 16  

2



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Part I  FINANCIAL INFORMATION




Item 1. Financial Statements.

SPORT CHALET, INC.

CONDENSED STATEMENTS OF INCOME
(UNAUDITED)

|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |           | 
|----------------------------------------------------- | ------- | - | ------------------ | --------- | ---------------- | - | ---------- | --------- | ---- | - | ----------- | --------- |  | - | ----------- | --------- | 
|                                                      |         |   | Three months ended |           | Six months ended
|                                                      |         |   | September 30,      |           | September 30,   
|                                                      |         |   |                    |           |                 
|                                                      |         |   | 2002               |           | 2001             |   | 2002       |           | 2001
|                                                      |         |   |                    |           |                  |   |            |           |     
|Net sales                                             |         | $ | 56,327,344         |           |                  | $ | 54,658,105 |           |      | $ | 107,532,004 |           |  | $ | 102,607,576 |          
|Cost of goods sold, buying and
occupancy              |         |   | 39,541,506         |           |                  |   | 38,992,351 |           |      |   | 76,964,847  |           |  |   | 71,966,602  |          
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|Gross profit                                          |         |   | 16,785,838         |           |                  |   | 15,665,754 |           |      |   | 30,567,157  |           |  |   | 30,640,974  |          
|Selling, general and administrative
expenses          |         |   | 14,340,812         |           |                  |   | 13,451,196 |           |      |   | 27,940,301  |           |  |   | 26,364,825  |          
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|Income from operations                                |         |   | 2,445,026          |           |                  |   | 2,214,558  |           |      |   | 2,626,856   |           |  |   | 4,276,149   |          
|Interest (expense) income                             |         |   | (84,585            | )         |                  |   | 1,167      |           |      |   | (124,527    | )         |  |   | 70,528      |          
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|Income before taxes                                   |         |   | 2,360,441          |           |                  |   | 2,215,725  |           |      |   | 2,502,329   |           |  |   | 4,346,677   |          
|Income tax provision                                  |         |   | 943,000            |           |                  |   | 892,000    |           |      |   | 1,001,000   |           |  |   | 1,740,000   |          
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|Net income                                            |         | $ | 1,417,441          |           |                  | $ | 1,323,725  |           |      | $ | 1,501,329   |           |  | $ | 2,606,677   |          
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|Earnings per share:                                   |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|                                                      | Basic   |   | $                  | 0.21      |                  |   | $          | 0.20      |      |   | $           | 0.23      |  |   | $           | 0.40      | 
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|                                                      | Diluted |   | $                  | 0.20      |                  |   | $          | 0.19      |      |   | $           | 0.22      |  |   | $           | 0.37      | 
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|Weighted average number of
common shares outstanding: |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|                                                      | Basic   |   |                    | 6,617,667 |                  |   |            | 6,584,023 |      |   |             | 6,610,806 |  |   |             | 6,582,012 | 
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          
|                                                      | Diluted |   |                    | 6,939,971 |                  |   |            | 6,999,520 |      |   |             | 6,970,037 |  |   |             | 6,993,304 | 
|                                                      |         |   |                    |           |                  |   |            |           |      |   |             |           |  |   |             |          

See accompanying notes.

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SPORT CHALET, INC.

CONDENSED BALANCE SHEETS

|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |            |            |            | 
|--------------------------------------------------- | ---------------------------------------------- | ----------------------------------------------------------------------------------------------- | ------------------------------------------ | ---------- | ------------- | ---------- | ---------- | ---------- | ---------- | ---------- | 
|                                                    |                                                |                                                                                                 |                                            |            | September 30, |            | March 31, 
|                                                    |                                                |                                                                                                 |                                            |            | 2002          |            | 2002      
|                                                    |                                                |                                                                                                 |                                            |            |               |            |           
|                                                    |                                                |                                                                                                 |                                            |            | (Unaudited)   |            |            |            |           
|Assets                                              |                                                |                                                                                                 |                                            |            |               |            |            |           
|Current assets:                                     |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    | Cash                                           |                                                                                                 | $                                          | 2,629,216  |               |            | $          | 4,273,485  |           
|                                                    | Accounts receivable, less allowance of $25,000 |                                                                                                 |                                            | 1,446,729  |               |            |            | 678,709    |           
|                                                    | Merchandise inventories                        |                                                                                                 |                                            | 61,677,228 |               |            |            | 47,916,553 |           
|                                                    | Prepaid expenses and other current assets      |                                                                                                 |                                            | 1,725,312  |               |            |            | 1,757,007  |           
|                                                    | Prepaid income taxes                           |                                                                                                 |                                            |           |               |            |            | 448,760    |           
|                                                    | Deferred income taxes                          |                                                                                                 |                                            | 1,242,244  |               |            |            | 1,258,795  |           
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    |                                                | Total current assets                                                                            |                                            |            | 68,720,729    |            |            |            | 56,333,309 |           
|Furniture, equipment and leasehold improvements-net |                                                |                                                                                                 | 26,284,239                                 |            |               |            | 26,577,041 |           
|Deferred income taxes                               |                                                |                                                                                                 | 581,613                                    |            |               |            | 184,492    |           
|Other assets                                        |                                                |                                                                                                 | 186,839                                    |            |               |            | 215,468    |           
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    |                                                | Total assets                                                                                    |                                            | $          | 95,773,420    |            |            | $          | 83,310,310 |           
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           
|Liabilities and stockholders equity                |                                                |                                                                                                 |                                            |            |               |            |            |           
|Current liabilities:                                |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    | Current portion of loans payable to bank       |                                                                                                 | $                                          | 3,885,000  |               |            | $          |           |           
|                                                    | Bank overdraft                                 |                                                                                                 |                                            | 4,881,251  |               |            |            | 7,192,258  |           
|                                                    | Accounts payable                               |                                                                                                 |                                            | 19,702,070 |               |            |            | 10,815,241 |           
|                                                    | Salaries and wages payable                     |                                                                                                 |                                            | 1,582,949  |               |            |            | 2,184,509  |           
|                                                    | Other accrued expenses                         |                                                                                                 |                                            | 4,069,915  |               |            |            | 4,008,208  |           
|                                                    | Income taxes payable                           |                                                                                                 |                                            | 658,721    |               |            |            |           |           
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    |                                                | Total current liabilities                                                                       |                                            |            | 34,779,906    |            |            |            | 24,200,216 |           
|Deferred rent                                       |                                                |                                                                                                 | 4,434,521                                  |            |               |            | 4,185,625  |           
|Stockholders equity                                |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    | Preferred stock, $.01 par value:               |                                                                                                 |                                            |            |               |            |            |            |           
|                                                    |                                                | Authorized
shares  2,000,000                                                                   |                                            |            |               |            |            |            |            |           
|                                                    |                                                | Issued and outstanding shares  none                                                            |                                            |            |               |           |            |            |            |           | 
|                                                    | Common stock, $.01 par value:                  |                                                                                                 |                                            |            |               |            |            |            |           
|                                                    |                                                | Authorized
shares  15,000,000                                                                  |                                            |            |               |            |            |            |            |           
|                                                    |                                                | Issued and outstanding
shares  6,618,334 at September 30, 2002 and 6,595,500
at March 31, 2002 |                                            |            | 66,183        |            |            |            | 65,955     |           
|                                                    | Additional paid-in capital                     |                                                                                                 |                                            | 22,065,584 |               |            |            | 21,932,617 |           
|                                                    | Retained earnings                              |                                                                                                 |                                            | 34,427,226 |               |            |            | 32,925,897 |           
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    | Total stockholders equity                     |                                                                                                 |                                            | 56,558,993 |               |            |            | 54,924,469 |           
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           
|                                                    |                                                |                                                                                                 | Total liabilities and stockholders equity |            | $             | 95,773,420 |            |            | $          | 83,310,310 | 
|                                                    |                                                |                                                                                                 |                                            |            |               |            |            |           

See accompanying notes.

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SPORT CHALET, INC.

CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

|                                                                                  |                                              |                                           |             |                                |             |      |            |           |             |  
|--------------------------------------------------------------------------------- | -------------------------------------------- | ----------------------------------------- | ----------- | ------------------------------ | ----------- | ---- | ---------- | --------- | ----------- | -
|                                                                                  |                                              |                                           |             | Six months ended September 30,
|                                                                                  |                                              |                                           |             |                               
|                                                                                  |                                              |                                           |             | 2002                           |             | 2001
|                                                                                  |                                              |                                           |             |                                |             |     
|Operating activities                                                              |                                              |                                           |             |                                |             |      |            |          
|Net income                                                                        |                                              | $                                         | 1,501,329   |                                |             | $    | 2,606,677  |          
|Adjustments to reconcile net income to net cash provided
by operating activities: |                                              |                                           |             |                                |             |      |            |          
|                                                                                  | Depreciation and amortization                |                                           |             | 2,674,465                      |             |      |            | 2,604,000 |            
|                                                                                  | Deferred income taxes                        |                                           |             | (380,570                       | )           |      |            | 875,510   |            
|                                                                                  | Tax Benefit on employee stock options        |                                           |             | 45,087                         |             |      |            |          |            
|                                                                                  | Changes in operating assets and liabilities: |                                           |             |                                |             |      |            |           |            
|                                                                                  |                                              | Accounts receivable                       |             |                                | (768,020    | )    |            |           | (527,959    | )
|                                                                                  |                                              | Merchandise inventories                   |             |                                | (13,760,675 | )    |            |           | (15,405,060 | )
|                                                                                  |                                              | Prepaid income taxes                      |             |                                | 448,760     |      |            |           | (916,166    | )
|                                                                                  |                                              | Prepaid expenses and other current assets |             |                                | 31,695      |      |            |           | (390,223    | )
|                                                                                  |                                              | Bank overdraft                            |             |                                | (2,311,007  | )    |            |           |            |  
|                                                                                  |                                              | Accounts payable                          |             |                                | 8,886,829   |      |            |           | 10,938,148  |  
|                                                                                  |                                              | Salaries and wages payable                |             |                                | (601,560    | )    |            |           | (883,345    | )
|                                                                                  |                                              | Other accrued expenses                    |             |                                | 61,707      |      |            |           | (1,497,004  | )
|                                                                                  |                                              | Income taxes payable                      |             |                                | 658,721     |      |            |           | (1,286,861  | )
|                                                                                  |                                              | Deferred rent                             |             |                                | 248,896     |      |            |           | 153,120     |  
|                                                                                  |                                              |                                           |             |                                |             |      |            |          
|Net cash used in operating activities                                             |                                              |                                           | (3,264,343  | )                              |             |      | (3,729,163 | )        
|Investing activities                                                              |                                              |                                           |             |                                |             |      |            |          
|Other assets                                                                      |                                              |                                           | 28,629      |                                |             |      | 41,217     |          
|Purchase of furniture, equipment and leasehold improvements                       |                                              |                                           | (2,381,663  | )                              |             |      | (5,155,603 | )        
|                                                                                  |                                              |                                           |             |                                |             |      |            |          
|Net cash used in investing activities                                             |                                              |                                           | (2,353,034  | )                              |             |      | (5,114,386 | )        
|Financing activities                                                              |                                              |                                           |             |                                |             |      |            |          
|Proceeds from bank borrowing                                                      |                                              |                                           | 27,830,000  |                                |             |      |           |          
|Repayments of bank borrowing                                                      |                                              |                                           | (23,945,000 | )                              |             |      |           |          
|Proceeds from exercise of stock options                                           |                                              |                                           | 88,108      |                                |             |      | 33,665     |          
|                                                                                  |                                              |                                           |             |                                |             |      |            |          
|Net cash provided by financing activities                                         |                                              |                                           | 3,973,108   |                                |             |      | 33,665     |          
|                                                                                  |                                              |                                           |             |                                |             |      |            |          
|Decrease in cash and cash equivalents                                             |                                              |                                           | (1,644,269  | )                              |             |      | (8,809,884 | )        
|Cash and cash equivalents at beginning of period                                  |                                              |                                           | 4,273,485   |                                |             |      | 8,945,034  |          
|                                                                                  |                                              |                                           |             |                                |             |      |            |          
|Cash and cash equivalents at end of period                                        |                                              | $                                         | 2,629,216   |                                |             | $    | 135,150    |          
|                                                                                  |                                              |                                           |             |                                |             |      |            |          
|Supplemental Disclosure of Cash Flow Information                                  |                                              |                                           |             |                                |             |      |            |          
|Cash paid during the period for:                                                  |                                              |                                           |             |                                |             |      |            |          
|                                                                                  |                                              | Income taxes                              |             | $                              | 229,000     |      |            | $         | 3,067,517   |  
|                                                                                  |                                              | Interest                                  |             |                                | 32,172      |      |            |           |            |  

See accompanying notes.

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SPORT CHALET, INC.

NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)

1. Basis of Presentation

The accompanying unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United States
for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all information
and footnotes required by accounting principles generally accepted in the
United States for complete financial statements. In the opinion of management,
all adjustments, consisting of normal recurring accruals, considered necessary
for a fair presentation of the results of operations for the periods presented
have been included.

The financial data at March 31, 2002 is derived from audited financial
statements which are included in the Companys Annual Report on Form 10-K for
the year ended March 31, 2002, and should be read in conjunction with the
audited financial statements and notes thereto. Interim results are not
necessarily indicative of results for the full year.

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.

2. Earnings per Share

Earnings per share, basic, is computed based on the weighted average
number of common shares outstanding for the period. Earnings per share,
diluted, is computed based on the weighted average number of common and
potentially dilutive common equivalent shares outstanding for the period. A
reconciliation is as follows:

|                                          |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |           | 
|----------------------------------------- | ------------------------------------------- | - | ------------------ | --------- | ---------------- | - | --------- | --------- | ---- | - | --------- | --------- |  | - | --------- | --------- | 
|                                          |                                             |   | Three months ended |           | Six months ended
|                                          |                                             |   | September 30,      |           | September 30,   
|                                          |                                             |   |                    |           |                 
|                                          |                                             |   | 2002               |           | 2001             |   | 2002      |           | 2001
|                                          |                                             |   |                    |           |                  |   |           |           |     
|Net Income                                |                                             | $ | 1,417,440          |           |                  | $ | 1,323,725 |           |      | $ | 1,501,327 |           |  | $ | 2,606,677 |          
|Weighted average number of common shares: |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |          
|                                          | Basic                                       |   |                    | 6,617,667 |                  |   |           | 6,584,023 |      |   |           | 6,610,806 |  |   |           | 6,582,012 | 
|                                          | Effect
of dilutive securitiesstock options |   |                    | 322,304   |                  |   |           | 415,497   |      |   |           | 359,231   |  |   |           | 411,292   | 
|                                          |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |          
|                                          | Diluted                                     |   |                    | 6,939,971 |                  |   |           | 6,999,520 |      |   |           | 6,970,037 |  |   |           | 6,993,304 | 
|                                          |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |          
|Earnings per share:                       |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |          
|                                          | Basic                                       |   | $                  | 0.21      |                  |   | $         | 0.20      |      |   | $         | 0.23      |  |   | $         | 0.40      | 
|                                          | Effect of dilutive securities               |   | $                  | 0.01      |                  |   | $         | 0.01      |      |   | $         | 0.01      |  |   | $         | 0.03      | 
|                                          |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |          
|                                          | Diluted                                     |   | $                  | 0.20      |                  |   | $         | 0.19      |      |   | $         | 0.22      |  |   | $         | 0.37      | 
|                                          |                                             |   |                    |           |                  |   |           |           |      |   |           |           |  |   |           |          

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3. New Accounting Pronouncements

In June 2001, the Financial Accounting Standards Board issued Statements
of Financial Accounting Standards No. 141, Business Combinations and No. 142,
Goodwill and Other Intangible Assets. Statement 141 requires that the
purchase method of accounting be used for all business combinations initiated
after June 30, 2001. Statement 141 also includes guidance on the initial
recognition and measurement of goodwill and other intangible assets arising
from business combinations completed after June 30, 2001. Statement 142
prohibits the amortization of goodwill and intangible assets with indefinite
useful lives. Statement 142 requires that these assets be reviewed for
impairment at least annually. Intangible assets with finite lives will continue
to be amortized over their estimated useful lives. Additionally, Statement 142
requires that goodwill included in the carrying value of equity method
investments no longer be amortized. The Company adopted Statement 142 beginning
in the first quarter of fiscal 2003 and it did not have a material impact on
its results of operations.

In August 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 144 Accounting for the Impairment or
Disposal of Long-Lived Assets (SFAS 144), which addresses financial accounting
and reporting for the impairment or disposal of long-lived assets and
supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of, and the accounting and reporting
provisions of APB Opinion No. 30, Reporting the Results of Operations for a
disposal of a segment of a business. SFAS 144 is effective for fiscal years
beginning after December 15, 2001, with earlier application encouraged. The
Company adopted SFAS 144 in the first quarter of fiscal 2003 and it did not
have a material impact on its results of operations.

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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.

Except for the historical information contained herein, the matters
addressed in this Item 2 constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements are subject to a variety of risks and uncertainties, including those
discussed below under the heading Factors That May Affect Future Results and
elsewhere in this Quarterly Report on Form 10-Q, that could cause actual
results to differ materially from those anticipated by the Companys
management. The Private Securities Litigation Reform Act of 1995 (the Act)
provides certain safe harbor provisions for forward-looking statements. All
forward-looking statements made on this Quarterly Report on Form 10-Q are made
pursuant to the Act.

The following should be read in conjunction with the Companys financial
statements and related notes thereto provided under Item 1Financial Statements
above.

Results of Operations

The following tables set forth statements of income data and relative
percentages of net sales for the periods indicated (dollar amounts in
thousands, except per share amounts).

|                                             |         |   |                                  |      |                                |  |        |   |         |   |        |      |         |  |        |   |         |   |         |      |  |  |       |   |  |   |         |      |  |  |       |   | 
|-------------------------------------------- | ------- | - | -------------------------------- | ---- | ------------------------------ |  | ------ | - | ------- | - | ------ | ---- | ------- |  | ------ | - | ------- | - | ------- | ---- |  |  | ----- | - |  | - | ------- | ---- |  |  | ----- | - | 
|                                             |         |   | Three months ended September 30, |      | Six months ended September 30,
|                                             |         |   |                                  |      |                               
|                                             |         |   | 2002                             |      | 2001                           |  | 2002   |   | 2001   
|                                             |         |   |                                  |      |                                |  |        |   |        
|                                             |         |   | Amount                           |      | Percent                        |  | Amount |   | Percent |   | Amount |      | Percent |  | Amount |   | Percent
|                                             |         |   |                                  |      |                                |  |        |   |         |   |        |      |         |  |        |   |        
|Net sales                                    |         | $ | 56,327                           |      |                                |  | 100.0  | % |         | $ | 54,658 |      |         |  | 100.0  | % |         | $ | 107,532 |      |  |  | 100.0 | % |  | $ | 102,608 |      |  |  | 100.0 | %
|Gross profit                                 |         |   | 16,785                           |      |                                |  | 29.8   | % |         |   | 15,666 |      |         |  | 28.7   | % |         |   | 30,567  |      |  |  | 28.4  | % |  |   | 30,641  |      |  |  | 29.9  | %
|Selling, general and
administrative expenses |         |   | 14,340                           |      |                                |  | 25.5   | % |         |   | 13,451 |      |         |  | 24.6   | % |         |   | 27,940  |      |  |  | 26.0  | % |  |   | 26,365  |      |  |  | 25.7  | %
|Income from operations                       |         |   | 2,445                            |      |                                |  | 4.3    | % |         |   | 2,215  |      |         |  | 4.1    | % |         |   | 2,627   |      |  |  | 2.4   | % |  |   | 4,276   |      |  |  | 4.2   | %
|Interest (expense) income                    |         |   | (85                              | )    |                                |  | -0.2   | % |         |   | 1      |      |         |  | 0.0    | % |         |   | (125    | )    |  |  | -0.1  | % |  |   | 71      |      |  |  | 0.1   | %
|Income before taxes                          |         |   | 2,360                            |      |                                |  | 4.2    | % |         |   | 2,216  |      |         |  | 4.1    | % |         |   | 2,502   |      |  |  | 2.3   | % |  |   | 4,347   |      |  |  | 4.2   | %
|Net income                                   |         |   | 1,417                            |      |                                |  | 2.5    | % |         |   | 1,324  |      |         |  | 2.4    | % |         |   | 1,501   |      |  |  | 1.4   | % |  |   | 2,607   |      |  |  | 2.5   | %
|Earnings per share:                          |         |   |                                  |      |                                |  |        |   |         |   |        |      |         |  |        |   |         |   |         |      |  |  |       |   |  |   |         |      |  |  |       |  
|                                             | Basic   |   | $                                | 0.21 |                                |  |        |   |         |   | $      | 0.20 |         |  |        |   |         |   | $       | 0.23 |  |  |       |   |  |   | $       | 0.40 |  |  |       |   | 
|                                             | Diluted |   | $                                | 0.20 |                                |  |        |   |         |   | $      | 0.19 |         |  |        |   |         |   | $       | 0.22 |  |  |       |   |  |   | $       | 0.37 |  |  |       |   | 

Three Months Ended September 30, 2002 Compared to Three Months Ended
September 30, 2001.Sales have increased from $54.7 million for the three
months ended September 30, 2001 to $56.3 million for the same period this year,
a 3.0% increase. The increase is the result of opening two new stores in
November 2001, partially offset by a comparable store sales decrease of 2.3%.
Comparable store sales are based upon stores opened throughout both periods.
Comparable store sales have decreased as discretionary spending remains tightly
managed by consumers in reaction to the prolonged economic slowdown.

Gross profit as a percent of sales increased from 28.7% for the three
months ended September 30, 2001 to 29.8% for the same period this year
primarily due to lower markdowns partially offset by increased occupancy costs.
In the prior year the Company ran an aggressive end-of-summer clearance
promotion that was not repeated to the same extent this year resulting in lower
markdowns. Comparable store sales and the new larger distribution center caused
occupancy costs to increase by 100 basis points in the period ended September
30, 2002 as compared to the same period last year.

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Selling, general and administrative expenses as a percent of sales
increased from 24.6% for the three months ended September 30, 2001 to 25.5% for
the same period this year. The increase is primarily the result of lower than
expected sales in conjunction with increased utility costs as a percent of
sales.

Interest expense was $85,000 for the period ended September 30, 2002,
compared to interest income of $1,000 for the period ended September 30, 2001,
due to the increased use of the Companys credit facility in the current period
as compared to the same period last year.

The effective income tax rate was 40.3% for the three months ended
September 30, 2001, compared to 40.0% for the same period this year, which
differs from the statutory rate of 39.8% as a result of permanent differences
between financial reporting and tax-basis income.

Net income increased from $1.3 million, or $0.19 per diluted share, for
the three months ended September 30, 2001 to $1.4 million, or $0.20 per diluted
share, for the same period this year, primarily as a result of increased sales
and better inventory management.

Six Months Ended September 30, 2002 Compared to Six Months Ended September
30, 2001.Sales have increased from $102.6 million for the six months ended
September 30, 2001 to $107.5 million for the same period this year, a 4.8%
increase. The increase is the result of opening one store in the period ended
September 30, 2001 and two new stores in November 2001, partially offset by a
comparable store sales decrease of 1.4%. Comparable store sales are based upon
stores opened throughout both periods. Comparable store sales have decreased
as discretionary spending remains tightly managed by consumers in reaction to
the prolonged economic slowdown.

Gross profit as a percent of sales decreased from 29.9% for the six months
ended September 30, 2001 to 28.4% for the same period this year due to the
decrease in comparable store sales and the new larger distribution center
caused occupancy costs to increase by 100 basis points in the period ended
September 30, 2002 as compared to the same period last year. Although consumer
purchasing has trended towards value merchandise, more recently this tendency
has diminished resulting in lower markdowns as compared to the prior year when
an aggressive end of summer clearance promotion was not repeated to the same
extent this year.

Selling, general and administrative expenses as a percent of sales
increased from 25.7% for the six months ended September 30, 2001 to 26.0% for
the same period this year. The increase is primarily the result of lower than
expected sales.

Interest expense was $125,000 for the period ended September 30, 2002,
compared to interest income of $71,000 for the period ended September 30, 2001,
due to the increased use of the Companys credit facility in the current period
compared to the same period last year.

The effective income tax rate was 40.0% for the six month periods ending
September 30, 2001 and 2002, which differs from the statutory rate of 39.8% as
a result of permanent differences between financial reporting and tax-basis
income.

Net income decreased from $2.6 million, or $0.37 per diluted share, for
the six months ended September 30, 2001 to $1.5 million, or $0.22 per diluted
share, for the same period this year, primarily as a result of decreased gross
profit as consumer purchasing trended towards value merchandise, partially
offset by better inventory management.

9



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Liquidity and Capital Resources

The Companys primary capital requirements are for inventory and store
expansion, relocation and remodeling. Historically, cash from operations,
credit terms from vendors and bank borrowing have met the Companys liquidity
needs. Management believes that these sources will be sufficient to fund
currently anticipated cash requirements for the foreseeable future.

Net cash used in operating activities was $3.3 million for the six months
ended September 30, 2002 compared to $3.7 million for the same period last year
as the result of lower net income, adjusted for depreciation and amortization,
and increases in bank overdraft combined with accounts payable offset by
inventory purchases.

Inventories increased by $13.8 million and $15.4 million for the six
months ended September 30, 2002 and 2001, respectively, compared to the
respective year-end balances primarily due to the seasonal build-up of summer
related inventory. Inventory at September 30, 2002 is $3.8 million greater
than the same period last year primarily as a result of the opening of two
stores since the end of this period in the prior year.

Historically accounts payable increases as inventory increases. In fiscal
2002, invested cash built-up in prior years was used to fund the Companys
expansion plans causing a bank overdraft of $4.9 million, which represents the
total of checks in transit in excess of cash on hand. For the six months ended
September 30, 2002 and 2001, accounts payable combined with bank overdraft
increased $6.6 million and $10.9 million, respectively, primarily as a result
of increased inventory levels and the timing of payments to vendors.

Net cash used in investing activities for the six months ended September
30, 2002 was $2.4 million, resulting from capital expenditures primarily for
two new stores scheduled to open in November 2002 and the relocation of the
corporate headquarters. For the same period last year net cash used in
investing activities was $5.1 million, primarily from capital expenditures to
enhance merchandising presentation in the Companys existing stores, capital
expenditures related to the Companys new distribution center and the opening
of one new store.

Net cash provided by financing activities reflects advances and repayment
of borrowings under the Companys revolving credit facility. As of September
30, 2002, the Company had $4.0 million outstanding on this facility for the
seasonal build-up of inventory. There were no borrowings during the six months
ended September 30, 2001.

The Companys credit facility with Bank of America National Trust and
Savings Association, Inc. (the Lender) provides for advances up to $20
million, increasing to $30 million for the period October 1, 2002 through
December 31, 2002, less the amount of any outstanding draws, up to a $1.5
million maximum in authorized letters of credit. Interest accrues at the
Lenders prime rate plus 1/4% (5.0% at September 30, 2002) or can be fixed
for a period of time at the then current rate established under one of several
indices, all at the Companys option. This credit facility expires on
September 30, 2003, and the Company expects to renegotiate and extend the term
of this agreement or obtain another form of financing before that date. The
Companys obligation to the Lender is presently secured by a first priority
lien on substantially all of the Companys non-real estate assets, and the
Company is subject to several restrictive covenants. The principal operating
covenants require the Company to maintain certain minimum cash flow coverage
and debt to equity ratios and restrict the level of capital expenditures,
calculated on a quarterly basis. The Company currently is in compliance with
the

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amended covenants. The Company believes its credit line with the Lender is
sufficient to fund capital expenditures for the foreseeable future and to meet
seasonal fluctuations in cash flow requirements. However, unexpected
conditions could require the Company to request additional borrowing capacity
from the Lender or alter its expansion plans or operations.

The Companys primary contractual obligations and commitments are its
store leases with initial terms expiring from 2004 through 2020 and typically
provide for multiple five-year renewal options:

|                        |  |                  |             | 
|----------------------- |  | ---------------- | ----------- | 
|Payments due by period: |  | Operating Leases
|                        |  |                 
|Through March 31, 2003  |  | $                | 12,992,154  | 
|2 - 3 years             |  |                  | 26,087,236  | 
|4 - 5 years             |  |                  | 25,124,427  | 
|After 5 years           |  |                  | 58,266,144  | 
|Total                   |  | $                | 122,469,961 | 

All retail store leases provide for base rent which may or may not be
credited against percentage rent based upon gross sales from the premises. In
some of the leases, base rental amounts increase as the lease term progresses,
although in some cases, the Company expects that percentage rent will more than
offset the base rental amounts.

No cash dividends were declared on Common Stock in fiscal 2002. The
Company intends to retain earnings for use in the operation and expansion of
its business and, therefore, does not anticipate paying any cash dividends in
the foreseeable future.

Critical Accounting Policies and Use of Estimates

The Companys significant accounting policies are described in Note 2 of
the Companys Annual Report on Form 10-K for the year ended March 31, 2002,
which have been prepared in accordance with accounting principles generally
accepted in the United States. In preparing the financial statements, the
Company is required to make estimates and judgments which affect the results of
its operations and the reported value of assets and liabilities. Actual results
may differ from these estimates. The Company believes that the following
summarizes critical accounting policies which require significant judgments and
estimates in the preparation of its consolidated financial statements

Inventory Valuation.Merchandise inventories are stated at the lower of
cost (first-in, first-out determined by the retail method of accounting) or
market. The Company considers cost to include direct cost of merchandise, plus
internal costs associated with merchandise procurement, storage and handling.
The Company regularly reviews aged and excess inventories to determine if the
carrying value of such inventories exceeds market value; a reserve is recorded
to reduce the carrying value to market value as necessary. A determination of
market value requires estimates and judgment based on the Companys historical
markdown experience and anticipated markdowns based on future merchandising and
advertising plans, seasonal considerations, expected business trends and other
factors.

Gift Certificate Redemption.The Company offers its customers the option
of purchasing gift certificates which may be used toward the future purchase of
the Companys product offerings. These

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gift certificates have no expiration dates. The Company records
unredeemed gift certificates as a liability until the point of redemption. The
Companys historical experience indicates that not all issued gift certificates
get redeemed. Accordingly, the Company periodically adjusts the carrying value
of the gift certificate liability. The Company monitors redemptions rates as a
percent of issuances and uses this information to estimate probable redemption
of all outstanding gift certificates. This calculation is based on historical
experience, and future redemption rates may vary if consumer purchasing
practices change.

Factors That May Affect Future Results

The statements which are not historical facts contained in this Quarterly
Report on Form 10-Q are forward looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that involve risks and
uncertainties. These risks and uncertainties include, but are not limited to,
those set forth below.

Economic
Conditions. The retail industry historically has been subject to
substantial cyclical variation, and a recession in the general economy or
uncertainties regarding future economic prospects that affect consumer spending
habits have had, and may in the future have, a materially adverse effect on the
Companys results of operations.

Competition.
The sporting goods business and the retail environment are
highly competitive, and the Company competes with national, regional and local
full-line sporting goods chains, specialty stores, supplier owned stores,
discount and department stores, and e-tailers. A number of the Companys
competitors are larger and have greater resources than the Company.

Regional Market
Concentration. Currently, all of the Companys stores are
located in Southern California and the Las Vegas area of Nevada. Accordingly,
the Company is subject to regional risks, such as the economy, weather
conditions, natural disasters and government regulations. If the region were
to suffer an economic downturn or if other adverse events were to occur, there
could be an adverse effect on the Companys net sales and profitability and its
ability to implement its planned growth. Several of the Companys competitors
operate stores across the United States and, thus, are not as vulnerable as the
Company to such regional risks.

Single
Distribution Center. The Company has a single distribution center
and if there is a natural disaster or other serious disruption at the facility,
merchandise may be lost or undeliverable to our stores, thereby, reducing sales
and profitability.

Expansion
Plan. The Companys continued growth is dependent to a
significant degree upon its ability to open new stores on a profitable basis.
The Companys ability to expand will depend, in part, on business conditions
and the availability of satisfactory store locations based on local competitive
conditions, site availability and cost, and the Companys ability to provide
and maintain high service levels and quality brand merchandise at competitive
prices. In addition, a decline in the Companys overall financial performance,
increased rents or any other adverse effects arising from the commercial real
estate market in the Companys markets may adversely effect the Companys
current growth plan. There can be no assurance that the Company will possess
sufficient funds to finance the expenditures related to its planned growth,
that new stores can be opened on a timely basis, that such new stores can be
operated on a profitable basis, or that such growth will be manageable.

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Future Capital
Requirements. The Company may not be able to fund its
future growth or react to competitive pressures if it lacks sufficient funds.
Unexpected conditions could cause the Company to be in violation of its
Lenders operating covenants. Currently, the Company feels it has sufficient
cash available through its bank credit facilities and cash from operations to
fund existing operations for the foreseeable future. The Company cannot be
certain that additional financing will be available in the future if necessary.

Management of
Growth. Since its inception, the Company has experienced
periods of rapid growth. No assurance can be given that the Company will be
successful in maintaining or increasing its sales in the future. Any future
growth in sales will require additional working capital and may place a
significant strain on the Companys management, management information systems,
inventory management, distribution facilities and receivables management. Any
failure to timely enhance the Companys operating systems, or unexpected
difficulties in implementing such enhancements, could have a material adverse
effect on the Companys results of operations.

Dependence on
Key Personnel. The Company depends on the continued service
of its senior management. The loss of the services of any key employee could
hurt the business. Also, the future success of the Company depends on its
ability to identify, attract, hire, train and motivate other highly skilled
personnel. Failure to do so may adversely affect future results.

Seasonality.
The Companys business is seasonal in nature. As is typical
with other sporting goods retailers, the Companys sales volume increases
significantly during the Christmas holiday season and the peak ski and
snowboard season generally corresponds to the months of November, December and
January. Therefore, the Companys results of operations are likely to vary
during its fiscal year. Historically the Companys operating results have been
influenced by the quantity and timing of snowfall at the resorts frequented by
those living in Southern California. An early seasonal snowfall often
influences sales as it generally extends the demand for winter related
merchandise while a late snowfall will have the opposite effect. Suppliers in
the ski and snowboard industry require purchasing commitments in April for a
fall delivery. If snowfall does not provide an adequate base, occurs late in
the season, or if sales do not meet expectations, the Company may be required
to mark down its winter apparel and equipment.

Variability of
Quarterly Results. The Company has experienced, and
expects to continue to experience, a substantial variation in its net sales and
operating results from quarter to quarter. The Company believes that the
factors which influence this variability of quarterly results include general
economic and industry conditions that affect consumer spending, changing
consumer demands, the timing of the Companys introduction of new products, the
level of consumer acceptance of each new product, the seasonality of the
markets in which the Company participates, the weather and actions of
competitors. Accordingly, a comparison of the Companys results of operations
from period to period is not necessarily meaningful, and the Companys results
of operations for any period are not necessarily indicative of future
performance.

Closely
Controlled Stock. At October 30, 2002, Norbert Olberz, the
Companys founder, Chairman Emeritus, director and principal stockholder (the
Principal Stockholder), owned approximately 66% of the Companys outstanding
common stock. Mr. Olberz effectively has the ability to control the outcome on
all matters requiring stockholder approval, including, but not limited to, the
election and removal of directors, and any merger, consolidation or sale of all
or substantially all of the Companys assets, and to control the Companys
management and affairs.

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Stock Price. The market price of the Companys common stock is likely to
be volatile and could be subject to significant fluctuations in response to
factors such as quarterly variations in operating results, operating results
which vary from the expectations of securities analyst and investors, changes
in financial estimates, changes in market valuations of competitors,
announcements by the Company or its competitors of a material nature, additions
or departures of key personnel, future sales of common stock and stock volume
fluctuations. Also, general political and economic conditions such as a
recession or interest rate fluctuations may adversely affect the market price
of the Companys stock.




Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Companys exposure to interest rate risk consists primarily of
borrowings under its credit facility that bears interest at floating rates
(primarily LIBOR rates). The impact on earnings or cash flows during the next
fiscal year from a one percentage point change in the interest rate would not
be significant.




Item 4. Controls and Procedures.

Within the 90 days prior to the filing date of this report, the Chief
Executive Officer and the Chief Financial Officer of the Company, with the
participation of the Companys management, carried out an evaluation of the
effectiveness of the Companys disclosure controls and procedures pursuant to
Exchange Act Rule 13a-14. Based upon that evaluation, the Chief Executive
Officer and the Chief Financial Officer believe that, as of the date of the
evaluation, the Companys disclosure controls and procedures are effective in
making known to them material information relating to the Company (including
its consolidated subsidiaries) required to be included in this report.

Disclosure controls and procedures, no matter how well designed and
implemented, can provide only reasonable assurance of achieving an entitys
disclosure objectives. The likelihood of achieving such objections is affected
by limitations inherent in disclosure controls and procedures. These include
the fact that human judgment in decision-making can be faulty and that
breakdowns in internal control can occur because of human failures such as
simple errors or mistakes or intentional circumvention of the established
process.

There were no significant changes in the Companys internal controls or in
other factors that could significantly affect internal controls, known to the
Chief Executive Officer or the Chief Financial Officer, subsequent to the date
of the evaluation.

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##### Table of Contents






Part II  OTHER INFORMATION




Item 1. Legal Proceedings.

The Company is involved in various routine legal proceedings incidental to
the conduct of its business. Management does not believe that any of these
legal proceedings will have a material adverse impact on the business,
financial condition or results of operations of the Company, either due to the
nature of the claims, or because management believes that such claims should
not exceed the limits of the Companys insurance coverage.




Item 2. Changes in Securities and Use of Proceeds.

None




Item 3. Defaults Upon Senior Securities.

Not Applicable




Item 4. Submission of Matters to a Vote of Securities Holders.

At the annual meeting of stockholders on August 1, 2002, the three Class 1
Directors, Al D. McCready, Eric Olberz and Frederick H. Schneider were
re-elected to the Companys Board of Directors. There were 6,136,073,
6,131,358 and 6,135,523 votes for and 19,445, 24,160 and 19,995 votes withheld,
respectively, for each of Mr. McCready, Mr. Olberz and Mr. Schneider. The
Companys Class 2 Directors, John R. Attwood and Craig Levra and Class 3
Directors, Norbert Olberz and Kenneth Olsen continue to serve on the Board.
The terms of the Class 1, 2 and 3 Directors presently expire at the annual
meeting of stockholders in fiscal year 2006, 2004 and 2005, respectively.

The stockholders also voted to ratify the amendment of the 1992 Incentive
Award Plan increasing from 1,200,000 to 1,500,000 the number of shares of the
Companys Common Stock which may be subject to awards granted thereunder. The
vote was 5,972,581 for, 66,462 against and 116,475 abstained.




Item 5. Other Information.

Stockholder Proposals

The proxy materials for the 2002 annual meeting of the stockholders to be
held on August 1, 2002 were mailed to stockholders of the Company on June 21,
2002. Under certain circumstances, stockholders are entitled to present
proposals at stockholders meetings. Any such proposal to be included in the
proxy statement for the Companys 2003 annual meeting of stockholders must be
submitted by a stockholder prior to February 22, 2003 in a form that complies
with applicable regulations. In the event a stockholder proposal is not
submitted to the Company prior to May 7, 2003, the proxies solicited by the
Board of Directors for the 2003 annual meeting of the stockholders will confer
authority on the holders of the proxy to vote the shares in accordance with
their best judgment and discretion if the proposal is presented at the 2003
annual meeting of stockholders without any discussion of the proposal in the
proxy statement for such meeting.

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Related Party Transaction

In October 2002 the Company moved its corporate headquarters to a new
building in La Canada, California. The 27,500 square foot building is owned by
La Canada Properties, Inc., a California corporation under the control of the
Principal Stockholder. The Companys independent directors have approved the
lease for this new building which includes monthly rent of $37,125 for an
initial term of ten years and grants the Company the option to extend the term
of the lease for two additional periods of five years each. Management
believes that the occupancy costs to the Company under this lease are no higher
than those which would be charged by an unrelated third party under similar
circumstances. The lease is attached as an exhibit to this Form 10-Q.




Item 6. Exhibits and Reports on Form 8-K.



| | (a) |  | Exhibits
| | --- |  | --------

|     |  |                                                                                                                      
|---- |  | ---------------------------------------------------------------------------------------------------------------------
|10.1 |  | Lease between the Company and La Canada Properties, Inc.                                                             
|99.1 |  | Certification Pursuant to 18 U.S.C. Section 1350 as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



| | (b) |  | Reports on Form 8-K.
| | --- |  | --------------------

During the quarter for which this Report on Form 10-Q is filed, no reports on Form 8-K were filed.




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned duly authorized officer and principal financial officer.

|                       |  |                    |  |                                                                                                                                        
|---------------------- |  | ------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------
|                       |  | SPORT CHALET, INC.
|                      
|DATE: October 30, 2002 |  | By:                |  | /s/ HOWARD K. KAMINSKY                                                                                                                 
|                       |  |                    |  |                                                                                                                                        
|                       |  |                    |  | Howard K. Kaminsky
Executive Vice President-Finance,
Chief Financial Officer and Secretary
(Principal Financial and Accounting Officer)

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CERTIFICATION

I, Craig Levra, certify that:



|1. |  | I have reviewed this quarterly report on Form 10-Q of Sport Chalet, Inc.;                                                                                                                                                                                                                                                     
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
|  
|3. |  | Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant. as of, and for, the periods presented in this quarterly report;                  
|  
|4. |  | The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:                                                                                                     



| | a) |  | designed such disclosure controls and procedures to ensure that
material information relativing to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and                                                                                                    
|
| | c) |  | presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;                                                                                                                          



|5. |  | The registrants other certifying officers and I have disclosed based on our
most recent evaluation, to the registrants auditors and the audit committee of
registrants board of directors (or persons performing the equivalent
function):
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and                                                                                                                                        



|6. |  | The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                       |  |                                     
|---------------------- |  | ------------------------------------
|Date: October 30, 2002 |  | /s/ Craig Levra                     
|                       |  |                                     
|                       |  | Craig Levra,
Chief Executive Officer

17



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##### Table of Contents



CERTIFICATION

I, Howard Kaminsky, certify that:



|1. |  | I have reviewed this quarterly report on Form 10-Q of Sport Chalet, Inc.;                                                                                                                                                                                                                                                     
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
|  
|3. |  | Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant. as of, and for, the periods presented in this quarterly report;                  
|  
|4. |  | The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:                                                                                                     



| | a) |  | designed such disclosure controls and procedures to ensure that
material information relativing to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and                                                                                                    
|
| | c) |  | presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;                                                                                                                          



|5. |  | The registrants other certifying officers and I have disclosed based on our
most recent evaluation, to the registrants auditors and the audit committee
registrants board of directors (or persons performing the equivalent
function):
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and
| |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  |  | b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and                                                                                                                                        



|6. |  | The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                         |  |  |  |                                         
|------------------------ |  |  |  | ----------------------------------------
|Date : October 30,  2002 |  |  |  | /s/ Howard Kaminsky                     
|                         |  |  |  |                                         
|                         |  |  |  | Howard Kaminsky,
Chief Financial Officer

18