SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory Holdings reported a 32.6 percent increase in sales in its fiscal first quarter and has raised its guidance for the second quarter and the full fiscal year, for both sales and earnings.
The company said bicycle-related sales were up 15.9 percent in the quarter, while powered vehicle product sales were up 54 percent. As is its usual practice, Fox did not break out dollar amounts for the bike versus powered products.
“The increase in sales of bike products primarily reflects new product introductions and favorable model year spec placements with OEMs,” the company said.
Besides its Fox-branded suspension products, Fox Factory Holdings sells Marzocchi bicycle suspension products as well as Race Face and Easton cycling components.
Total sales were $106.3 million in the quarter, compared with $80.2 million in the same period a year earlier. Gross margin increased 40 basis points to 31.7 percent, compared with 31.3 percent a year earlier.
“We achieved sales and profitability above our expectations in the first quarter of fiscal 2017, driven by solid momentum across both our bike and powered vehicle product offerings,” said Larry L. Enterline, Fox’s CEO.
“As a result of our strong start to the year, we are raising our guidance for fiscal 2017. We believe the diversification of our product offerings and end markets continue to set us apart in the industry and position us well for future growth.”
Total operating expenses were $21.3 million for the first quarter of fiscal 2017, compared with $19.4 million in the first quarter of the prior fiscal year.
Fox said the increase in operating expenses is primarily a result of investments to support growth in the business. The expenses also include $900,000 associated with its ongoing patent lawsuits with SRAM.
