Fox Factory mirrors Shimano in record 2022, but with Q4 slowdown
Suspension giant Fox Factory has posted a record tally of $1,602.5 million for the year of 2022, up 23.4% overall and more specifically in the bicycle goods segment an increase of 17.6%.
The full year tally did show signs of a fourth quarter reversal, with a 1.9% dip in like-for-like trade to finish the year, which the company attributed to a “return to seasonality” and a post boom slowdown in demand for deliveries of its Fox, Marzocchi, RaceFace and Easton brands.
Inventory was worth $350.6 million as of December 30, 2022, compared to $279.8 million as of December 31, 2021.
“Thanks to a strong finish in the fourth quarter, FOX had another record year for both revenue and earnings in 2022. Our team stayed focused on our mission, leveraging our diverse portfolio to combat supply chain and labor constraints, as well as threats from inflation. In the fourth quarter, we also saw continued improvement in our Gainesville, Georgia facility, which provides a solid foundation for continued improvement in 2023,” said Mike Dennison, FOX’s Chief Executive Officer.
“As we enter 2023, we are aware that the global economy will continue to experience some challenges under the weight of inflationary pressures and tightening monetary conditions. As we navigate these challenges we will continue to fine-tune our product lines, while exploring investments to ensure our future success. Our achievements in 2022 provide us with confidence in our ability to execute our tactical objectives as well as deliver on our long term strategic vision.”
Gross margin was 32.0% for the fourth quarter of fiscal 2022, a 70 basis point increase from gross margin of 31.3% in the fourth quarter of fiscal 2021. However for the full year there was a 10 basis point decrease, compared to gross margin of 33.3% in fiscal year 2021.
For 2023’s first quarter Fox Factory forecasts sales in the range of $380 to $400 million, while full year expectations are targeting somewhere between $1,670 and $1,700 million.