DULUTH, Ga. (BRAIN) — Revenues in Fox Factory’s bicycle-related businesses were up 35% in the first half of the year compared with the same period last year. Sales in the division, which includes business under the Fox suspension, Easton, RaceFace and Marzocchi brands, totaled $348 million.
Sales in Fox’s powered vehicle division were up 24% in the first half, to $437 million.
Fox hit company record numbers for quarterly income, EBITA and earnings per share in the first half. Second-quarter revenues company-wide were $406.7 million, the first time Fox has recorded quarterly sales above $400 million.
Fox forecast third quarter sales of $385 million to $405 million and non-GAAP adjusted earnings per diluted share in the range of $1.15 to $1.35.
For the fiscal year 2022, the company now said it expects sales of $1,535 million to $1,565 million. For comparison, at the end of the first quarter this year the company had forecast full-year sales of $1,500 million to $1,530 million. Fox has publicly stated a goal of reaching sales of $2 billion by 2025.
In a call with analysts this week, CEO Mike Dennison said he expects Fox’s sales of bicycle products to return to normal seasonality in the fourth quarter this year, clarifying that that means Q4 sales could be less than Q3, but not below last year’s sales. Since the pandemic, Fox’s sales have not followed the typical seasonal pattern.
In response to a question from an analyst, Dennison said the climate for mergers and acquisitions has improved recently, perhaps bringing Fox back to the bargaining table for new acquisitions.
“We do see M&A starting to open up, and that’s good for us,” he said. “It’s been a tough market to do solid, productive M&A … hopefully we’ll get back to a more acquisitive environment and we’ll see what happens."
Other companies have recently reported that acquisition targets are now pricing their companies more realistically as the pandemic conditions have lessened.
Fox is traded on Nasdaq under the FOXF symbol. Stock quotes are available via the Fox site.
Fox announced its first half financials after the market closed Thursday. The stock closed at $94.48 Thursday and opened at $101.10. It traded as high as $107.76 Friday.
