Fox Factory announce 28.1% bike division sales boost in Q2

Q2 financial results from Fox Factory Holding Corp. today highlighted a sales increased 23.9% to $406.7 million, compared to $328.2 million in the same period last fiscal year.

Gross profit increased 28.7% to $142.9 million, compared to $111.1 million in the same period last fiscal year. 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 original equipment manufacturer (“OEM”) channel.

“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,” commented Mike Dennison, FOX’s Chief Executive Officer.

“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.”

The business also reports that total operating expenses were $72.5 million for the second quarter of fiscal 2022, compared to $58.4 million in the second quarter of fiscal 2021, attributing the  operating expenses increased, by $14.1 million, primarily to higher employee related costs, higher insurance and facility-related expenses, and higher commission costs.

As a percentage of sales, operating expenses for the second quarter of fiscal 2022 remained unchanged at 17.8%, when compared to the second quarter of fiscal 2021. Non-GAAP operating expenses were $66.5 million, or 16.3% of sales in the second quarter of fiscal 2022, compared to $51.4 million, or 15.7% of sales, in the second quarter of the prior fiscal year.

H1 in review; a wider picture.

The business also reports sales for the six months ended July 1, 2022 were $784.7 million, an increase of 28.8% compared to the first six months in fiscal 2021.

Breaking down the split in sectors, the reporting highlights, sales of Specialty Sports and Powered Vehicle products increased 35.2% and 24.1%, respectively, for the first six months of fiscal 2022 compared to the prior year fiscal period.

Adjusted EBITDA increased to $159.9 million in the first six months of fiscal 2022, compared to $130.1 million in the first six months of fiscal 2021.

Fox Factory Holdings Corp. has been on a strong upward trajectory post pandemic, with the Q2 2022 reporting continuing that trend. What H2 looks like will likely give a more complete picture of the shifting economic environment, with growing global financial concern resulting in reporting of historically low consumer confidence.