Fox Factory reports 23.9% sales increase in Q2

Fox Factory has reported financial results for the second quarter ended 1st July 2022.

Sales increased 23.9% to $406.7 million, compared to $328.2 million in the same period last fiscal year.

Fox said this increase reflects a 28.1% increase in Specialty Sports Group sales and a 20.9% increase in Powered Vehicles Group sales. The increase in Specialty Sports Group sales is driven by continued strong demand in the OEM channel, and the increase in Powered Vehicles Group sales is primarily due to strong performance in the company’s upfitting product lines.

Gross profit increased 28.7% to $142.9 million, compared to $111.1 million in the same period last fiscal year.

Mike Dennison, Fox’s chief executive officer, said: “We are pleased to report another quarter of record revenue and profitability in an increasingly complex and challenging macro business environment.

“Not only did we surpass the $400.0 million quarterly revenue mark for the first time, but we also delivered record gross margin, EBITDA, and net income. We are still seeing healthy demand across most of our diversified portfolio for the balance of the year.

“However, the ongoing macroeconomic and geopolitical volatility have caused us to slow both hiring and spending in an effort to stay in front of what will most likely be turbulent months ahead.”

Gross margin percentage increased 120 basis points to 35.1%, compared to 33.9% in the same period last fiscal year. Non-GAAP adjusted gross margin percentage increased 120 basis points to 35.3% compared to 34.1% in the same period last fiscal year.

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Net income was $53.5 million, or 13.2% of sales and $1.26 of earnings per diluted share, compared to $44.3 million, or 13.5% of sales and $1.05 of earnings per diluted share in the same period last fiscal year.

Non-GAAP adjusted net income was $58.6 million, or $1.38 of non-GAAP adjusted earnings per diluted share, compared to $51.0 million, or $1.20 of non-GAAP adjusted earnings per diluted share in the same period last fiscal year.

Adjusted EBITDA was $88.1 million, or 21.7% of sales, compared to $69.7 million, or 21.2% of sales in the same period last fiscal year.

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