Fox Factory has posted a 2.9% second quarter sales increase in its bicycle division, with first half sales also up 8.2%.
In a release to investors the company cited new product introductions and a decent level of spec choice among high growth manufacturers as primary reasons for the positive results.
Bicycke related sales did however pale in comparison against the powered vehicle division, which enjoyed sales growth of 42.7% in Q2 and 48% in the first half.
“We were pleased to continue to grow our business across both our powered vehicle and bike product offerings to generate record sales and adjusted EBITDA in the second quarter. Our business benefited from positive demand for on and off-road suspension products, new bike product introductions and favorable model year spec positions in the quarter,” stated Larry L. Enterline, FOX’s Chief Executive Officer. “As a result of year-to-date financial results and our current view of our business, we are pleased to be able to raise our outlook for fiscal year 2017.”
Gross margin was 32.3% for the second quarter of fiscal 2017, a 70 basis point improvement from gross margin of 31.6% in the second quarter of fiscal 2016. The improvement in gross margin was primarily due to favorable product and customer mix and improved manufacturing efficiencies. On a non-GAAP basis, adjusted gross margin increased 60 basis points, excluding the effects of acquisition related costs in the second quarter of last year.
For the third quarter of fiscal 2017, the Company expects sales in the range of $119 million to $125 million and non-GAAP adjusted earnings per diluted share in the range of $0.40 to $0.44.
For the full fiscal year 2017, the Company raises its previous guidance and now expects sales in the range of $458 million to $470 million and non-GAAP adjusted earnings per diluted share in the range of $1.43 to $1.51.
Two legal battles between SRAM and Fox relating to suspension and chainring patents continue to rumble on, costing the latter $919,000 in the second quarter.