It seems Performance Sports Group Ltd (NYSE: PSG) cannot find an exciting sport to play as investigators zero in on the company at its greatest hour of need. Investors were already disappointed by the company’s warning that F4Q2016 sales will drop by as much as 10% YoY. Then the issue of legal actions multiplying around the company has further stirred the mucky waters for investors.
It is no wonder that the stock that is already down more than 81% YTD continued to trend lower in the last session.
Because it is required by law to speak about these things, Performance Sports Group Ltd (NYSE: PSG) has announced that investigators at the U.S. Securities and Exchange Commission are trailing it. The company didn’t expound on the subject of investigation, but the investigations are coming only days after the company announced that it was undertaking an internal probe into its financials.
Besides the SEC investigations, Performance Sports Group is also facing regulatory inquiry in Canada.
Performance Sports Group Ltd (NYSE: PSG) also said that it will delay filing its annual report for fiscal 2016.
As if that is not enough, shareholder rights attorneys at Sutts, Strosberg LLP have announced that they are investigating the company. The investigations relate to the PSG’s warning that it will not meet the annual filing deadline for its fiscal 2016.
Investigations by the attorneys at Sutts, Strosberg LLP could trigger a class action. The law firm has encouraged investors in PSG who are interested in discussing their rights.
Complicated business environment
Performance Sports Group Ltd (NYSE: PSG) is facing a complicated business environment characterized by weak sales as some of its customers have gone bankrupt. The company recently announced the closing of one of its facilities and layoff of close to 15% of its workforce to try and come with the difficult business conditions. Performance Sports Group’s baseball/softball segment has been particularly shaken.
F4Q2016 results – Performance Sports Group Ltd (NYSE: PSG)
Performance Sports Group Ltd (NYSE: PSG) is looking for F4Q2016 revenue of $133 million, suggesting a 10% decline from the same period last year. Fiscal 2016 revenue is also expected to dip 10% from the previous year.