SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory Holding Corp. announced Thursday that its bicycle-related sales — through its Fox Factory, Marzocchi, Race Face and Easton brands — was up 2.9 percent in the second quarter, which ended June 30.
The company said the bike revenue increase "primarily reflects new product introductions and favorable spec positions with certain higher growth OEMs."
Bike-related sales for the first half were up 8.2 percent.
The bike sales increase was small potatoes compared to Fox's sales performance in its powered vehicle category. Sales there were up 42.7 percent in the second quarter and 48 percent for the half.
Fox, publicly traded on Nasdaq under the FOX symbol, released percentage revenue change figures for the bike and powered divisions, but does not release dollar amounts or relative sizes for the divisions. The company's total revenues for the quarter were up 18.1 percent to $120.8 million compared to $102.3 million in the same period last fiscal year.
Gross margin increased 70 basis points to 32.3 percent and pre-tax income was $17.8 million, or 14.8 percent of sales, compared to $10.7 million, or 10.4 percent of sales in the same period last fiscal year.
"We were pleased to continue to grow our business across both our powered vehicle and bike product offerings to generate record sales and adjusted EBITDA in the second quarter. Our business benefited from positive demand for on and off-road suspension products, new bike product introductions and favorable model year spec positions in the quarter," said Larry L. Enterline, Fox's CEO. "As a result of year-to-date financial results and our current view of our business, we are pleased to be able to raise our outlook for fiscal year 2017."
For the third quarter of fiscal 2017, the company expects sales in the range of $119 million to $125 million and non-GAAP adjusted earnings per diluted share in the range of $0.40 to $0.44.
For the full fiscal year 2017, the company raised its previous guidance and now expects sales in the range of $458 million to $470 million and non-GAAP adjusted earnings per diluted share in the range of $1.43 to $1.51.
Fox said it spent $919,000 on patent litigation costs in the second quarter, and $1.836 million on the litigation in the first half. Fox and SRAM are suing each other in two states over suspension and chainring-related patents.
