S&P trims Outerstuff

S&P said it trimmed Outerstuff LLC to CCC from CCC+, citing third quarter results “significantly” below the agency’s estimates.

“Outerstuff’s weak operating performance continued through the third quarter, and we now believe a default could occur over the next 12 months. Through the first three quarters of 2019, Outerstuff’s revenue fell about 11% from the same period last year, and its last-12-months EBITDA was negative mainly because of continued weak sales of National Football League (NFL) products and the slow ramp up of the Fanatics deal signed in late 2018,” said S&P in a press release.

The company was also hurt by management’s decision to take back inventory from certain retailers in the first quarter and weak Umbro sales after a good year for Umbro in 2018, S&P said.

The outlook is negative.

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