Fox Factory’s second quarter results have followed a positive Q1 trajectory, adding a 15.1% increase in sales of bike division products in the second quarter.
Overall group sales increased 29.8% to $156.8 million compared to $120.8 million in the same period last fiscal year.
Sales for the first six months of the 2018 fiscal year totalled $286.6 million, a like-for-like jump of 26.2%. The bike division’s first half growth rose by 13.%.
Gross margin was 32.8% in the first six months of fiscal 2018, an 80 basis point increase, compared to gross margin of 32.0% in the first six months of fiscal 2017. The year-to-date gross margin improved primarily due to increased operating leverage on higher volume and improved manufacturing efficiencies.
“Our differentiated bike and powered vehicle market positions fueled broad-based strength across our product portfolio, resulting in record second quarter sales and profitability, both of which exceeded our expectations,” outlined Larry L. Enterline, Fox Factory Chief Executive Officer. “We are pleased with our team’s continued execution as we further expand into new and existing end markets building upon our core bike and powered vehicle category capabilities with compelling product innovation. We believe we remain well positioned for future growth and based on these strong operational and financial results as well as our outlook for the remainder of the year, we are raising our annual guidance.”
Enterline told investors that he believed the bike industry’s fortunes to be slowly turning for the better, with particularly strong trade seen in Europe and North America.
On electric bikes, Enterline told a Wednesday conference call “It’s a wave that clearly we want to be able to ride.”
For the remainder of 2018, sales are expected to be in the range of $596 million to $614 million and non-GAAP adjusted earnings per diluted share in the range of $1.96 to $2.12.
Considering proposed tariffs, the company’s full year 2018 guidance assumes a non-GAAP tax rate of 19% to 21%.