DULUTH, Ga. (BRAIN) — Continued inventory “recalibrations” in the global industry and uncertainty about consumer and bike-maker demand has Fox Factory executives cautiously forecasting flat sales in its bike-product segment this year.
“We think there could be upside in the bike business this year, but keep in mind we’ve had a couple of really challenging years forecasting in that business, so we’re conservative right now,” Fox Factory CEO Mike Dennison said in a call with analysts Thursday.
“What we’ve seen so far in Q1 are pretty positive signals,” Dennison continued, regarding the bike business. “We think inventory is better in control. That’s a great sign. We think our product launches and our product diversification in that space is good,” he said.
Fox Factory’s bike-product sales finished 2024 on the upswing, with a 8.3% increase in revenue in the fourth quarter. For the full-year, however, its bike business was down 14% from 2023 due to continued inventory adjustments and cautious buying.
“Bike dealers, distributors, and OEMs are all very resistant to inventory positions,” Dennison said. He said that resistance dampened purchasing in late 2024, but left the industry flexibility to react to unexpected demand later in the year.
“In general, the bike industry is significantly healthier coming out of ’24 than coming out of ’23 … There’s going to be a good build this year as new products really start to get launched.
“Remember, the industry really hasn’t seen a lot of new products in the last several years because people are trying to burn through […]
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