SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory Holding Corp. racked up sales of $80.2 million in the first quarter, an 18.3 percent increase over the previous year. Fox, which bought Easton Cycling and Race Face in late 2014, said sales in its bike division were up 27 percent, while sales of motor vehicle products were up 9.1 percent.
Gross margin increased 360 basis points to 31.3 percent, compared with 27.7 percent in the same period last fiscal year. Net income was $3.3 million, or 9 cents per diluted share, compared with $800,000, or 2 cents per diluted share, in the same period last fiscal year
"We started 2016 with solid momentum across both our bike and powered vehicle product offerings. Strong operational execution enabled us to achieve sales growth above our expectations and earnings at the high end of our guidance," said Larry L. Enterline, Fox's CEO. "We remain confident that Fox is well-positioned for future growth as we benefit from our diversified product portfolio and the team's continued execution of our strategic initiatives. We believe these efforts will drive profitability and enhance long-term shareholder value."
The company said the increase in bike product sales was primarily due to the continued success of its 2016 product lineup, particularly in the OEM channel, and a shift in the timing of some customer orders from the second quarter into the first quarter of fiscal 2016.
The improvement in gross margin was primarily due to favorable product and customer mix as well as manufacturing efficiencies. Additionally, gross margin improved due to the non-recurrence of costs associated with the West Coast ports slowdown in the first quarter of 2015 and lower acquisition-related inventory costs.
Total operating expenses were $19.4 million for the first quarter, compared with $17.2 million in the first quarter last year. The company planned an investor conference call regarding the Q1 report for late Wednesday afternoon.
