Performance Sports Group (PSG) Tops Q1 EPS by 2c

Performance Sports Group (NYSE: PSG) reported Q1 EPS of $0.13, $0.02 better than the analyst estimate of $0.11. Revenue for the quarter came in at $175 million versus the consensus estimate of $177.13 million.

"As we anticipated, product launch timing in our hockey and baseball/softball businesses along with foreign currency exchange rates affected our first quarter financial results," said Kevin Davis, CEO of Performance Sports Group. "We estimate the strengthened U.S. dollar lowered our first quarter Adjusted EPS by approximately 60% or $0.21 compared to the prior year. Despite the ongoing impact of currency on our reported results, we continue to see solid growth across our brands, including continued market share gains in the recently completed back-to-hockey season, which runs from April through September.

"In terms of product timing, based upon retailer demand, this year we launched our new hockey products earlier in the season, resulting in more sales than usual in our fourth quarter. We also launched only one new EASTON bat family compared to two last year, yet were able to maintain our sales in baseball. This was driven in part by 76% sales growth in EASTON batting helmets and solid double-digit sales growth in our senior league bats across both our EASTON and COMBAT brands. In fact, our COMBAT brand had a very strong first quarter, growing constant currency revenues by 80%. The effect of product launch timing, a characteristic of our business, was partially offset by our fast-growing lacrosse business. In the first quarter, lacrosse sales were up 24%, driven by continued strong growth in MAVERIK's head and shaft categories, including the new CENTRIK head launch.

"As we look to the remainder of fiscal 2016, we reiterate our expectation that, on a currency-neutral basis, our brands will continue to outpace the growth of the markets we serve, resulting in market share gains and increased profitability. Supporting this outlook is our plan for a two-family launch in our hockey business in the fourth quarter of fiscal 2016, as well as other new product initiatives across all of our sports. We will also continue to leverage the strength of our performance sports platform with the goal of delivering significant cost reductions and operating efficiencies, with these efforts designed to support a profit growth rate that exceeds the pace of our revenue growth in fiscal 2016 and beyond, on a constant currency basis."

For earnings history and earnings-related data on Performance Sports Group (PSG) click here.

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