Fox Factory Holding Corp. reported sales in its Specialty Sports Group (SSG), its cycling component segment, delivered its ninth consecutive record revenue quarter in the three months ended July 1. Sales reached $178 million, up 28.1 percent on a year-over-year basis.
The gains in the second quarter were primarily due to increased demand in OEM channels.
Fox Factory’s CEO Mike Dennison told analysts, “We continue to optimize our capacity, our productivity and workforce in Taiwan as well as combat the increased prevalence of COVID on the island and within our factories.”
Regarding channel inventory, Dennison said high-end non-bike levels are still below the preferred levels as the rising popularity of e-bikes continues to fuel demand while supply chains improve.
Added Dennison, “We are, however, seeing signs of a return to normal, and, consequently, we expect SSG to return to more typical growth rates beginning in Q3 and return of seasonality in Q4.”
Companywide, sales increased 23.9 percent to $406.7 million, topping Wall Street’s consensus estimate of $399.07 million. Fox Factory’s guidance called for sales in the range of $385 million to $405 million.
In its other segment, Powered Vehicles Group, sales grew 20.9 percent to $229 million, its second consecutive quarter with over $200 million in revenue. The gains were led by strong performance in its operating product lines and increased efficiency and output in its Gainesville, GA facility, which opened in 2021.
Gross margins improved 120 basis points to 35.1 percent, and non-GAAP adjusted gross margin percentage increased 120 basis points to 35.3 percent. […]