SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory on Thursday announced its highest quarterly revenue in company history, driven in part by an 85.5% growth in its bicycle-product division.
Sales in the division totaled $118.4 million — a division quarterly record — up from $63.8 million in the same quarter last year. Last year’s quarter was impacted by the COVID-19 restrictions at Fox’s factories.
The company said OE and aftermarket sales contributed to the growth and it expects demand to remain very strong in the bike market for the rest of the fiscal year, although supply chain issues remain a challenge.
On a call with investors, CFO Scott Humphrey said Fox is still filling immediate demand for bicycle products. "Restocking is not happening yet — we're still looking at meeting demand, not re-stocking shelves, so we are gaining more confidence as we look toward the rest of this year," Humphrey said.
CEO Mike Dennison said he expects bicycle product sales to continue through 2021 and "a good portion of 2022 ... at this point it's too early to call on 2023, but demand will continue to outstrip demand from everything we can see."
"The tectonic shift created in the consumer demand by the pandemic seems more tangible than just a transitory bubble" — Fox CEO Mike Dennison
He said sales of e-bikes, including "E-SUVs" were contributing to the growth. And he noted that Fox's sales team finished its 2023 model year sales tools six months ahead of schedule.
"The tectonic shift created in the consumer demand by the pandemic seems more tangible than just a transitory bubble," Dennison told investors in prepared remarks Thursday. "The demand for our products in both PVG (Powered Vehicle Group) and SSG (Specialty Sports Group) continues to be strong. We expect the challenges related to the supply chain and commodity price inflation to continue, but we believe we have processes places to mitigate the majority of these headwinds. I am hopeful that pandemic-related challenges will continue to subside in the foreseeable future as vaccinations progress here and around the world."
Powered vehicle sales also up
Fox Factory’s powered-vehicle product revenue was up 35% in the quarter, to $162.7 million.
Company-wide gross margin was 34.8%, up from 30.7% in the prior-year quarter. The company noted that in the first quarter of last year it incurred $1.8 million in additional factory costs due to mandatory factory closures.
Fox raised its guidance for the next quarter and the full fiscal year. It now is forecasting Q2 sales of $275-295 million and earnings per share of 95 cents to $1.05. For the full year, it expects sales of $1.11-$1.16 billion and EPS of $3.70 to $4.
Also on Thursday, Fox announced it had appointed a new president of its Powered Vehicle Group, a new Chief Legal Officer, and a new Chief Purpose & Inclusion Officer.
Fox sells bike products under the Fox, Marzocchi, RaceFace, and Easton brands, which make up its Specialty Sports Group.
