For the fourth quarter ended May 31, revenues increased 18 percent due to strong growth in ice hockey equipment (14 percent), including fourth quarter growth in sticks (61 percent) and goalie equipment (41 percent), lacrosse (130 percent) and apparel (87 percent). Revenues from the North American market were up 15 percent while sales outside North America were up 27 percent in the period. Excluding the impact of foreign exchange, revenues grew by 20 percent in the fourth quarter of fiscal 2012.
The continued strong performance in hockey equipment has increased Bauer's global ice hockey equipment market share to 52 percent.
Revenues from the North American market grew by 20 percent for the full fiscal year 2012 compared to the same period last year, while sales outside North America grew by 29 percent in the same period. Excluding the impact of foreign exchange, revenues grew by 19 percent in fiscal 2012.
Ice hockey equipment revenues grew by 23 percent for the full year, led in part by a 30 percent increase in composite sticks and a 20 percent increase in skates. Bauer continues to see solid performance as well in both its lacrosse and apparel product categories, which have delivered year over year revenue increases of 51 percent and 33 percent, respectively.
"We are excited to report that in our recently concluded fiscal year, we achieved our stated objective to annually grow revenue faster than the industry and our earnings at a faster rate than our revenue," said Kevin Davis, president and CEO, Bauer Performance Sports. "We grew our market share profitably during fiscal 2012 and continued our strong momentum in some key categories such as skates, where we have a market share in excess of 60 percent, and sticks where we continue to separate ourselves as the number one brand in the industry. We are also very excited about the strong performance of our lacrosse business, especially in light of our recent acquisition of Cascade Helmets Holdings, Inc., which gives us a strengthened position in North America's fastest growing team sport. Our 18 percent revenue growth in the fourth quarter exceeded our previously reported Back-to-Hockey booking order growth of 12 percent, as the requested timing of shipments for the season fell more in Q4 vs. Q1 this year. We are excited about the start of the season and look forward to a successful Back-to-Hockey 2012."
Adjusted gross profit for fiscal 2012 increased by $22.2 million, or 18 percent to $145.1 million. Adjusted gross profit as a percentage of revenues was 38.7 percent in fiscal 2012, compared to 40.2 percent in the comparative period in 2011. During the fourth quarter of fiscal 2012, Adjusted gross profit increased by $3.5 million, or 11 percent, to $35.2 million, and adjusted gross profit as a percentage of revenues decreased to 43.7 percent from 46.5 percent. The decline in adjusted gross profit as a percentage of revenues during the quarter and in fiscal 2012 was primarily due to the growth in composite stick sales which have lower gross profit margins compared to our other ice hockey categories. Also contributing to the decline in adjust gross profit percentage were higher product costs, partially offset by lower freight and distribution costs.