SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory, which offers Fox suspension, Marzocchi, Easton cycling and Race Face products in the cycling market, saw a 15.1 percent increase in sales of bike products in the second quarter. The Q2 results cap a first half that recorded a 13 percent increase in bike-related sales.
Fox's bike-related sales totaled $75 million in the second quarter and $132 million in the half.
In a conference call with investors on Wednesday, Larry Enterline, Fox's CEO, said inventory levels in the bike industry channels where Fox is active is in better shape than in previous years.
"In general the bike industry seems to be having a better year than it has had in recent years," he said. He said Fox sales were strong in Europe and North America. Company officials said sales of its new e-bike forks "did have strength" but were not exceptional.
"We remain enthusiastic about e-bikes and we continue to devote resources to that market," Enterline said. "It's a wave that clearly we want to be able to ride."
Fox recorded a 46.8 percent increase in powered vehicle products in the second quarter.
Across both categories, sales were up 29.8 percent to $156.8 million compared to $120.8 million in the same period last fiscal year.
"Our differentiated bike and powered vehicle market positions fueled broad-based strength across our product portfolio, resulting in record second quarter sales and profitability, both of which exceeded our expectations," said Larry Enterline, Fox's CEO. "We are pleased with our team's continued execution as we further expand into new and existing end markets building upon our core bike and powered vehicle category capabilities with compelling product innovation. We believe we remain well positioned for future growth and based on these strong operational and financial results as well as our outlook for the remainder of the year, we are raising our annual guidance."
For the third quarter of fiscal 2018, the company expects sales in the range of $166 million to $176 million. For the fiscal year 2018, the company expects sales in the range of $596 million to $614 million.
The company said that for the remainder of the year, any impacts from proposed tariffs could be "contained within our current guidance."
