WESTFORD, CT (BRAIN)—Fox Racing Shox posted its fourth consecutive quarter of double-digit revenue growth this week as net sales soared 66 percent in the third quarter of the year.
Fox reported net sales of $61.3 million for the third quarter of the year, up from $36.9 million during the same period in 2009. For the nine months ending on Sept. 30, Fox’s net sales were $128.7 million compared with $86.8 million last year, an increase of nearly 50 percent.
The revenue jump was due to increased sales in the company’s mountain biking and powered vehicle sectors, according to a report released to the Securities Exchange Commission by Fox’s parent, Compass Diversified Holdings.
“Sales increases in the powered vehicles sector are due to strong sales of suspension products to Ford Motor Company for use in its F-150 Raptor off-road pickup and sales to ATV OEMs. Sales increases in the mountain biking sector are principally due to increased sales to Bike OEMs as our new model year bikes were well received,” the report said.
Income from operations rose from $4.7 million during the third quarter of 2009 to $10.4 million this year. Year-to-date, that number is up from $5.9 million last year to $16.3 million in 2010.
Joseph Massoud, chief operating officer of Compass Diversified Holdings, told analysts in a conference call that the strong growth reflects a “lumpy” business, where one quarter can reflect better than the quarter before or after.
“I don’t think there’s anything I would highlight as being particularly unusual in the [third] quarter except to say though that’s not what next quarter’s going to look like and the quarter after, but it is part of a very good year compared to last year,” Massoud said.
—Nicole Formosa
nformosa@bicycleretailer.com
