BIG DOG HOLDINGS, INC

BIG DOG HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (Unaudited)

			September 30,
			2004	2003

ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$ 2,330,000	$ 576,000
	Account receivable, net		403,000	257,000
	Inventories		51,791,000	33,319,000
	Prepaid expenses and other current assets		1,214,000	1,238,000
	Deferred income taxes		1,287,000	960,000
		Total current assets	57,025,000	36,350,000
PROPERTY AND EQUIPMENT, Net			10,520,000	4,404,000
INTANGIBLE ASSETS, Net DEFERRED INCOME TAXES			172,000 1,292,000	115,000 968,000
OTHER ASSETS			420,000	285,000
TOTAL			$ 69,429,000	$ 42,122,000

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Short-term borrowings Accounts payable		$ 15,628,000 7,720,000	$ 2,873,000 4,397,000
	Income taxes payable		452,000	---------
	Accrued expenses and other current liabilities		5,235,000	2,579,000
		Total current liabilities	29,035,000	9,849,000
NOTES PAYABLE CAPITAL LEASE OBLIGATIONS DEFERRED RENT			530,000 298,000 953,000	--------- --------- 627,000
DEFERRED GAIN ON SALE-LEASEBACK			261,000	314,000
	Total liabilities		31,077,000	10,790,000
STOCKHOLDERS' EQUITY			38,352,000	31,332,000
	TOTAL		$ 69,429,000	$ 42,122,000

BIG DOG HOLDINGS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS


			Three Months Ended		Nine Months Ended
			September 30,		September 30,
			2004	2003	2004	2003
			(Unaudited)		(Unaudited)
NET SALES			$ 42,695,000	$ 29,487,000	$ 105,619,000	$ 69,049,000
COST OF GOODS SOLD			19,262,000	12,658,000	47,934,000	29,899,000
GROSS PROFIT			23,433,000	16,829,000	57,685,000	39,150,000
OPERATING EXPENSES:
	Selling, marketing and distribution		19,363,000	12,390,000	52,371,000	35,584,000
	General and administrative		1,811,000	1,189,000	5,544,000	3,723,000
		Total operating expenses	21,174,000