DULUTH, Ga. (BRAIN) — Fox Factory reported Thursday that sales in its bicycle-related brands grew 38.7% in the third quarter, compared to the same period last year. The company said its bike-related sales were 21.9% higher than in the second quarter this year, marking its second straight sequential revenue increase for the bike business.
The bike-related sales were about $99 million in the quarter, up from $72 million in the third quarter last year. The quarter last year was one of the division's worst in recent years: It was the smallest revenue for the bike products since the first quarter of 2020 (see chart below).
“Although bike sales improved compared to prior year, the ongoing channel inventory recalibration and, to a lesser extent, lower-end consumer demand remain headwinds,” the company said in a press release Thursday.
Sales in Fox’s Speciality Sports Group were up 107.6% in the quarter, thanks to the strong sales for the bike-related brands and the new inclusion of revenues from Marucci, which Fox bought last year. Marucci is primarily a baseball/softball brand and also is the parent of LizardSkins and Oury. Fox Factory's bike-related brands are Fox and Marzocchi suspension, Easton cycling, RaceFace and Ride Concepts.
The SSG results powered Fox’s company-wide sales increase of 8.5% in the third quarter compared to Q3 2023, to $359.1 million. Fox’s other two business units, the Powered Vehicles Group and the Aftermarket Applications Group, had revenue declines in the quarter of 11.2% and 26.3% respectively.
Company net income was $4.78 million, down from $35.29 million in the quarter last year. Earnings per share was 11 cents, down from 83 cents, and adjusted EBITDA was $42.0 million, down from $63.65 million. Gross margin declined 250 basis points to 29.9%.
Fox planned an investor call for later Thursday.
