Fox Factory reports third consecutive quarter of record sales, bolsters leadership team

Fox Factory has reported financial results for the first quarter ending 2nd April, with a sales increase of 52.5% to $281.1 million, compared to $184.4 million in the same period last fiscal year.

Gross margin increased 410 basis points to 34.8%, compared to 30.7% in the same period last fiscal year and non-GAAP adjusted gross margin increased 410 basis points to 35% compared to 30.9% in the same period last fiscal year.

Net income attributable to Fox stockholders was $38 million, or 13.5% of sales and $0.90 of earnings per diluted share, compared to $8.3 million, or 4.5% of sales and $0.21 of earnings per diluted share in the same period last fiscal year.

“Fox Factory delivered a third consecutive quarter of record sales,” said Mike Dennison, Fox’s chief executive officer. “Our team continues to execute at the highest level, despite the meaningful supply chain challenges which exist across our business.

“Our performance in the first quarter displays the tenacity and adaptability of the superb team we are building at Fox. I remain optimistic about our prospects in 2021 and beyond as we expect to continue to deliver impressive growth in a dynamic business environment.”

The company has also announced three key new leadership additions as it continues to lay the foundation for its next phase of growth.

“Thanks to our existing team, we have experienced tremendous growth and portfolio diversification,” said Dennison. “In order to achieve the breakthrough results we aspire to reach, we have to do things thoughtfully and with our strategic vision in mind. The changes we are announcing today are part of our evolution as a company. We are investing in our future by expanding the scope of our leadership team with deliberate intention and purpose.”

Tom L. Fletcher has been promoted to president, PVG business and corporate strategy. He joined Fox in July 2020 as senior vice president of strategy and platform development. In his expanded role, Fletcher will leverage his diverse engineering and business experience to strengthen the front end of the PVG business, which includes the go-to-market strategy, product offerings, product engineering, sales and marketing.

“In light of Fox’s growth over the past several years, and the PVG business in particular, it has become increasingly necessary for our senior executives to be empowered to focus on their core areas of expertise,” added Dennison. “The continued success of the PVG business requires us to invest in additional resources to foster further growth.

“Mr Fletcher’s promotion will benefit our current PVG operations by allowing Rich Winters, president, Powered Vehicles Group, to focus exclusively on the operational aspects of the business, including supply chain, manufacturing, manufacturing support infrastructure, and the streamlining of efforts to achieve the company’s business strategy.”

Toby D. Merchant has joined the company as its first chief legal officer and secretary. Merchant has over 16 years of experience working with public and private companies on a variety of matters ranging from corporate governance, securities matters, and company-specific issues, to leading domestic and international mergers, acquisitions, and divestitures.

Additionally, the company has promoted Jackie B. Martin to chief purpose and inclusion officer. She joined the company in September 2020 as vice president, inclusion, diversity and engagement. In her expanded role, Martin will be responsible for driving a global strategy around the company’s commitment to (but not limited to) inclusion, diversity and engagement (ID&E), environment, social and governance (ESG) change management, and workforce development.

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