Business
Fox Factory Holding Corp. Announces Second Quarter Fiscal 2023 Financial Results
Quarterly net sales of $401 million driven by 33% increase in PVG and 26% increase in AAG Net income of $40 million and earnings per diluted share (“EPS”) of
About this update from Fox Factory Holding Corp.
[{"type":"text","content":"Quarterly net sales of $401 million driven by 33% increase in PVG and 26% increase in AAG Net income of $40 million and earnings per diluted share (“EPS”) of $0.94 Adjusted EPS of $1.21 and adjusted EBITDA of $79 million exceed expectations Strong cash flow reduces revolver borrowings by $35 million Company reaffirms full year fiscal 2023 outlook at the low end of $1.67 billion to $1.70 billion of sales. DULUTH, Ga., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”) today reported financial results for the second quarter ended June 30, 2023. “Strong sales growth in PVG and AAG coupled with continued efficiency gains in our North American facilities enabled us to deliver on net sales and to exceed our expectations on adjusted EBITDA and adjusted EBITDA Margin,” commented Mike Dennison, FOX’s Chief Executive Officer. “Our solid cash flow generation and strong balance sheet place us in a position of strength heading into the second half of the year as we advance our organic growth strategy, address softness in SSG and continue to evaluate various acquisition targets that would be accretive to our brands and our financial performance.” In the second quarter of fiscal year 2023, the Company realigned its Powered Vehicles Group into the Powered Vehicles Group (“PVG”) and the Aftermarket Applications Group (“AAG”) to be more aligned with the Company’s end customers and drive additional focus on product development. Net sales for the second quarter of fiscal 2023 were $400.7 million, a decrease of 1.5%, as compared to net sales of $406.7 million in the second quarter of fiscal 2022. This decrease reflects a 41.0% decrease in Specialty Sports Group (“SSG”) net sales, offset by a 32.6% and 26.2% increase in PVG and AAG net sales, respectively. The decrease in SSG net sales is driven by higher levels of inventory across various channels. The increase in PVG net sales is primarily due to strong demand in the original equipment manufacturer (“OEM”) channel. The increase in AAG net sales is primarily due to the inclusion of revenue from our Custom Wheel House subsidiary, which was acquired in March 2023, and strong performance in our upfitting product lines. Gross margin was 32.9% for the second quarter of fiscal 2023, a 220 basis point decrease from gross margin of 35.1% in the second quarter...