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Kevin Davis, president and CEO, Bauer Performance Sports
Kevin Davis, president and CEO, Bauer Performance Sports
(Deborah Baic/The Globe and Mail)

Bauer looks beyond the ice for growth

Bauer Performance Sports is skating into the wind. The sports equipment company is coming off a blockbuster year, but a few near-term issues are likely to prevent the rally from continuing, and put more pressure on the company’s recent acquisitions to drive profits.

Even though Bauer’s growth is outstripping its competitors, lacklustre quarterly sales, coupled with upcoming challenges associated with recent government tax changes, are causing trouble in the company’s key business: hockey equipment. Despite Bauer’s positive traits -- strong brands, solid management and possible future deals -- investors should expect this stock to stay put for a while, according to Mark Petrie, analyst at CIBC World Markets Inc..