Unfavourable impact from foreign exchange drove sales down 11 per cent year on year, at Performance Sports Group, a manufacturer of high performance sports apparel for the first fiscal quarter ended August 31, 2015.
“Revenues in the first quarter of fiscal 2016 declined 11 per cent to $175.0 million, compared to $197.1 million in the prior fiscal's same quarter,” a press release from Performance Sports stated.
While on a constant currency basis, revenues were down 4 per cent year over year to $189.5 million in the quarter under review.
“The 11 per cent decline was primarily due to the unfavourable impact from foreign exchange and variations in product launch cycles in the hockey, baseball and softball segments,” it explained.
However, offsetting the revenue declines was an 80 per cent constant currency sales growth in the Combat brand, a 24 per cent hike in Lacrosse sales and a 27 per cent constant currency rise in Inaria soccer uniform sales.
Adjusted gross profit in the first fiscal quarter slipped 24 per cent to $55.6 million, while on a constant currency basis; adjusted gross profit decreased 5 per cent to $69.6 million.
As a percentage of revenues, adjusted gross profit margin decreased 540 basis points to 31.8 per cent as against 37.2 per cent in the fiscal ago quarter, primarily driven by unfavourable foreign exchange rates.
SG&A expenses in the first quarter of fiscal 2016 increased by 12 per cent to $40.1 million, compared to $35.8 million in the first quarter of previous fiscal.
According to the company, SG&A rose due to start-up costs related to the 'Own the Moment' retail initiative, higher legal, audit and other corporate costs, due in part to regulatory compliance costs.
Adjusted EBITDA dived down 58 per cent year in year to $16.7 million in the reporting quarter, while on a constant currency basis, adjusted EBITDA was $31.4 million, down 21 per cent.
Adjusted net income in the first quarter dipped higher at 73 per cent to $6.0 million or $0.13 per diluted share, compared to $21.8 million or $0.49 per diluted share in the first quarter of earlier fiscal.
On August 31, 2015, working capital amounted to $374.5 million, compared to $363.7 million on August 31, 2014, while total debt was $454.5 million on August 31, 2015 versus $419.8 million at August 31, 2014.
Performance Sports Group's leverage ratio, as defined under the company's credit facilities, stood at 5.73x as of August 31, 2015, compared to 3.61x one year ago.
“Excluding the impact of foreign currency on the company's trailing 12-month EBITDA, the leverage ratio was 4.11,” the company informed. (AR)
Fibre2Fashion News Desk – India
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