(BRAIN) — Fox Factory revenues in its Speciality Sports Group, which includes its bike-related brands, were down 43% in the company’s 2023 fiscal year, a decline the company attributed to “channel inventory recalibration” and “lower end consumer demand.” The decline in the SSG revenue came despite the inclusion of $16.8 million in net sales from Marucci, which Fox bought in November.
Company-wide, Fox Factory sales were down 8.6% to $1.46 billion, thanks to sales growth in Fox’s powered vehicle group and aftermarket applications group. SSG sales for the year were $389.2 million, down from $681 the year prior.
Sales took a turn for the worse after the first half of the year, said Mike Dennison, Fox’s CEO. “Clearly, 2023 was a tale of two halves with the first half of the year generally on plan and the back half of the year, especially after Labor Day, where SSG de-stocking as it relates to Bike and other macro headwinds grew significantly. While the second half of 2023 was challenging, I am pleased that we maintained our disciplined focus on innovation across the enterprise,” Dennison said in a press release Thursday.
For the 2024 fiscal year, Fox forecast net sales in the range of $1.53 billion to $1.68 billion. The company said its “product roadmap” supports its long term goal of hitting $2 billion in sales in its 2025 fiscal year, however, it cautioned that hitting that goal depends on some factors out of its control.
“Our vision of $2.0 billion in sales and 25% Adjusted EBITDA margin will depend on several factors including uncertainties on volume, and product mix since we are largely tied to OEMs, the larger macro environment including interest rates, and our exit rate in Q4 of this year,” the company said.
Fox's bicycle-related brands are Fox suspension, Easton cycling, RaceFace and Marzocchi. Additionally, Marucci, which is primarily a baseball-softball brand, also is the parent of Lizard Skins, which makes bike grips, handlebar tape and gloves, in addition to grip tape for bats and other athletic products.
Fox planned a conference call with analysts late Thursday afternoon.
