Performance Sports Group (PSG) Slashes FY16 EPS Forecast

Performance Sports Group Ltd. (NYSE: PSG) has revised its outlook for its 2016 fiscal year and reported preliminary results for its fiscal third quarter ended February 29, 2016. All figures are in U.S. dollars. Certain metrics, including those expressed on an adjusted and/or constant currency basis, are non-GAAP financial measures (see "Non-GAAP Financial Measures" below). All figures exclude the accounting gain the Company expects to record in the third quarter of fiscal 2016 associated with its acquisition of Easton Hockey in January 2016.

The Company has reduced its fiscal year 2016 Adjusted EPS guidance by approximately $0.55 per diluted share to approximately $0.12 to $0.14 per diluted share as compared to its prior publication of guidance ($0.66 to $0.69 per diluted share), primarily as a result of the following three factors:

(i) a write down of the receivable balance from a U.S. national sporting goods retailer that has filed under chapter 11 and the related anticipated loss of sales from this retailer ($0.09 per share);

(ii) an anticipated reduction in sales, particularly due to weakness in the baseball/softball market ($0.31 per share); and

(iii) additional bad debt reserves primarily for certain U.S. hockey customers and the related anticipated loss of sales from such customers ($0.19 per share).

(Street sees FY16 EPS of $0.65)

Offsetting these reductions are anticipated incremental cost savings of $0.04 per diluted share on an Adjusted EPS basis.

For the third quarter of fiscal 2016, the Company expects to report revenues of approximately $125 million or 9% lower compared to the same quarter last year. On a constant currency basis, total Company revenues are expected to have declined by approximately 6% to $130 million.

Adjusted EPS in the third quarter is expected to be approximately ($0.29) per diluted share (($0.16) per diluted share on a constant currency basis), compared to Adjusted EPS of $0.13 per diluted share in the same quarter last year.

Adjusted EPS in the fourth quarter is expected to be approximately $0.15 to $0.17 per diluted share ($0.20 to $0.22 per diluted share on a constant currency basis), compared to Adjusted EPS of $0.32 per diluted share in the same quarter last year.

Adjusted EPS in fiscal year 2016 is expected to be approximately $0.12 to $0.14 per diluted share ($0.64 to $0.66 per diluted share on a constant currency basis), compared to Adjusted EPS of $1.02 per diluted share in fiscal year 2015.

Management Commentary

"The second half of fiscal 2016 has been impacted by adverse market conditions and related customer credit issues," said Kevin Davis, CEO, Performance Sports Group. "The baseball/softball market is experiencing an unexpected significant downturn in retail sales, including in our important bat category. 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 for baseball and softball products. Additionally, the consolidation of hockey retail in the U.S. has reduced our customers' demand for products more than we previously anticipated as they continue to reduce their inventory levels."

"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 challenges facing our U.S. baseball/softball and hockey businesses," continued Davis, "the rest of our global businesses continue to perform well. In hockey, we expect our non-U.S. order book for the important Back-to-Hockey season, which begins in our fourth quarter, to show continued resilience, with constant currency orders up by low-to-mid single digits."

"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. We will communicate our revised expectations for fiscal 2017 leverage in the future."

Presentation of Financial Information All figures indicated above with respect to the fiscal third quarter, the fiscal fourth quarter and fiscal year 2016 are preliminary, have not been reviewed by the Company's auditors and are subject to change as the Company's financial results are finalized.

The preliminary results and outlook (including anticipated hockey booking orders for the "Back to Hockey" season) provided in this press release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions, and are subject to a number of risks and uncertainties. Please see the section below entitled "Caution Regarding Forward-Looking Statements."

The Company will announce at a later date when it intends to issue a press release with respect to the finalized financial results for the fiscal third quarter ended February 29, 2016. At such time, the Company will also file its quarterly report on Form 10-Q which will include unaudited consolidated financial statements, together with the notes thereto and management's discussion and analysis of financial condition and results of operations of the Company for the three and nine months ended February 29, 2016.

Conference Call Performance Sports Group will hold a conference call today, March 8, 2016, at 8:00 a.m. Eastern time to discuss its preliminary fiscal third quarter results, and outlook for the fiscal fourth quarter and fiscal 2016.

The Company's CEO Kevin Davis, President of PSG Brands Amir Rosenthal, and CFO Mark Vendetti will host the conference call, followed by a question and answer period.

Date: Tuesday, March 8, 2016 Time: 8:00 a.m. Eastern time Toll-free dial-in number: 1-888-587-0615 International dial-in number: 1-719-457-2697 Conference ID: 6645276

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

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