BRASELTON, Ga. (BRAIN) — Fox Factory Holding Corp. is reporting a sales increase of 23.4% in its third fiscal quarter, compared to the same quarter last year.
"With swift allocation of resources, we were able to take advantage of the strong demand trends within our end markets, while still driving gross margin improvement amid an uncertain and complex manufacturing environment," said Mike Dennison, Fox's CEO.
In the quarter Fox's Specialty Sports Group — which is comprised of its bike brands: Fox, Marzocchi, RaceFace and Easton Cycling — had a 32% growth in revenue. "The Fox brand is resonating with consumers who are seeking innovative products with high performance and industry-defining capabilities," Dennison said. Sales in the specialty group totaled $108 million for the quarter.
Fox's Powered Vehicles Group recorded a 17.7% increase in sales, largely thanks to the addition of SCA sales to the total. Fox bought SCA, an authorized specialty vehicle manufacturer, in February. Sales in the powered vehicle division totaled $153 million for the quarter.
Fox's net income for the quarter was $38 million, up from $30 million in the same quarter last year. For the first three quarters of its fiscal year, Fox's net income was $60 million, compared to $72 million last year. For the fiscal year, it forecast sales of $868.2-$878.2 million and adjusted EPS of $2.42-$2.92.
Fox's quarterly report noted that its long-running patent fight with SRAM continues. The dispute began in 2015 and is now playing out in courts in Colorado and Illinois.
Fox Factory's stock was one of those that suffered Monday in Wall Street's response to the Pfizer vaccine news. It closed Monday at $83.48 a share, down 16.6% from its close on Friday. It closed at $85.36 a share on Tuesday. Its third quarter earnings report was released after the market closed; in after-hours trading Tuesday Fox was trading as high as $88.20.
