BRASELTON, Ga. (BRAIN) — Fox Factory Holding Corp. has suspended non-essential operations at its North American factories due to COVID-19. The company also has lowered its earnings guidance for its first fiscal quarter and suspended full-year guidance.
Fox said its manufacturing facilities in North America have been affected by local and state "shelter in place" or "stay at home" orders requiring temporary suspension of non-essential operations in some facilities. In addition, the company said it is taking precautions to ensure the safety of its employees, including the adherence to best practice guidelines from federal, state, and/or local government authorities.
Fox also is enacting executive pay cuts and temporary furloughs, curtailing non-essential capital expenditures, and reducing expenses overall.
"The health and wellness of our employees remains a top priority as we work together with our valued customers and suppliers during this time of global uncertainty," said CEO Mike Dennison. "Across our organization, we are taking necessary safety, support, and other measures to best manage our business in the current operating environment as we continue to deliver performance-defining products. Going forward, we believe we will be well-positioned for long-term growth in our diversified bike and powered vehicle businesses. However, given the near-term uncertainty we believe it is prudent to suspend our annual outlook at this time."
For the first quarter of fiscal year 2020, Fox said it now expects sales to be slightly above the low end of its previously provided guidance range of $182 million to $190 million. Non-GAAP adjusted earnings per diluted share is now expected to be at or near the low end of its previously provided guidance range of $0.55 to $0.60.
The company will report first-quarter financial results on May 6.
