BRASELTON, Ga. (BRAIN) — Fox Factory's bicycle-related sales were up 10% in its second fiscal quarter, which ended July 3.
The company said its Speciality Sports Group — which sells products under the Fox, Marzocchi, Easton Cycling and RaceFace brands — "was a standout success in the quarter, exceeding our pre-COVID expectations."
It was a rare reporting period where the bicycle division outperformed Fox's powered vehicle division, which saw a sales decline of 14.5% in the second quarter.
The combined businesses showed a 4.7% decline in sales in the quarter, to $183.1 million.
"It is a bit of a bike renaissance we are experiencing," Fox CEO Mike Dennison said in an investor call Wednesday. "The demographic is changing in terms of new entrants into the sport coming into the sport. There is so much demand against the bikes that are available that it also pushes people into a higher, premium-level bike that might have been looking at lower level bikes before."
Fox is not releasing earnings forecasts for the next quarter due to uncertainty, but Dennison said he expected the demand for bike products to continue into the next two quarters.
"(The demand) continues on into Q3 and we are working hard to fulfill that demand, which is probably the bigger challenge of Q3 ... making sure we can meet all the demand that is incremental and new.
For the quarter, Fox's margin increased 40 basis points to 32.8%, compared to 32.4% in the same period last fiscal year; non-GAAP adjusted gross margin increased 40 basis points to 33.1% compared to the same period last fiscal year
For the first half, both divisions recorded sales growth: 3.3% for the powered group and 4.7% for the bike group.
Fox also announced Scott Humphrey was promoted to the role of chief financial officer effective Aug. 4. Humphrey succeeds interim CFO John Blocher, who will reassume the role of senior vice president of finance.
