SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory Holding Corp. said Wednesday that its sales in the first half of its fiscal year were up 15.8 percent, to $165 million.
Sales of bicycle products were up 16.7 percent in the half, with the biggest increase coming in the second quarter, largely due to the addition of Easton and Race Face products. The company said its 2016 model year Fox suspension offerings also were well received.
Sales of Fox's powered-vehicle products were up 14.7 percent in the first half.
The company is revising up its guidance for its full fiscal year performance.
In the second quarter, overall sales increased 12.5 percent, to $97.2 million, compared with $86.4 million in the same period last fiscal year. Bikes sales in the second quarter were up 23.9 percent, while powered-vehicle sales were down 3 percent.
The company said second-quarter gross margin declined somewhat — from 31.2 percent last year to 30.7 percent this year — in part due to expenses related to "accelerating the ramp-up of bike rear shock production in Taiwan and the subsequent reconfiguration of the company's Watsonville, Calif., facility."
Fox said that gross margins will improve slightly in the second half of the year compared with the last six months of fiscal 2014.
For the fiscal year 2015, the company now expects sales in the range of $347 million to $363 million. Previously Fox had called for sales of $333 million to $357 million.
Fox Factory was split off from Compass Diversified in a 2013 IPO. It acquired Race Face and Easton Cycling in December 2014. The company’s stock is traded on the Nasdaq stock market under the FOXF symbol, and its stock performance is tracked on BRAIN’s stock page.
