Performance Sports' Stock Plunges After Profit Outlook Cut

Performance Sports Group Ltd.'s stock plunged 32% in premarket trade Tuesday, after the sports equipment and apparel maker slashed its full-year profit outlook. The company said it now expects fiscal 2016 adjusted earnings per share of 12 cents to 14 cents, down from an estimate of 66 cents to 69 cents provided in January, and below the FactSet consensus of 66 cents. The reasons for the lowered outlook include weakness in the baseball and softball market, increased bad-debt reserves for certain U.S. hockey customers and write downs of receivables from a sporting goods retailer that went bankrupt. On March 2, Sports Authority filed for chapter 11 bankruptcy protection. For the fiscal third quarter ended in February, the company expects an adjusted per-share loss of 29 cents, compared with the FactSet consensus of a per-share profit of 13 cents. "The baseball/softball market is experiencing an unexpected significant downturn in retail sales, including in our important bat category," said Chief Executive Kevin Davis.