Performance Sports Group Down 60% After Guidance Cut

Performance Sports Group Ltd PSG is down more than 63 percent on the day, trading at $3.19.

The swan dive is being attributed to guidance cuts from the company.

The revision follows preliminary Q3 2015 results, and includes a reduced FY2016 adjusted EPS to ~$0.12–$0.14/diluted share, a drop of approximately $0.55/diluted share. These numbers compare to prior guidance of $0.66–$0.69/diluted share.

Related Link: Earlier Wunderlich Downgraded Performance Sports Group To Hold

According to Performance Sports Group CEO Kevin Davis, "The second half of fiscal 2016 has been impacted by adverse market conditions and related customer credit issues."

"This weakening of consumer demand, coupled with the chapter 11 filing by one of the largest U.S> national sporting goods retailers, is reducing our sales […] In light of these events and challenges, including the bankruptcy of an internet baseball retailer in our second quarter, we decided to increase our bad debt reserves for certain of our U.S. hockey and baseball/softball customers."

Despite the lowered guidance, Davis remains optimistic, "Finally, even with our revised Adjusted EPS guidance, we expect debt reduction of between $35 million to $40 million during the second half of fiscal 2016."