Fox Factory has posted sales surpassing $80 million in Q1, a 18.3% rise in trade during the period year-on-year.
“We started 2016 with solid momentum across both our bike and powered vehicle product offerings. Strong operational execution enabled us to achieve sales growth above our expectations and earnings at the high end of our guidance,” stated Larry L. Enterline, Fox’s Chief Executive Officer. “We remain confident that Fox is well positioned for future growth as we benefit from our diversified product portfolio and the team’s continued execution of our strategic initiatives. We believe these efforts will drive profitability and enhance long-term shareholder value.”
Sales of bike components made up a good chunk of growth, with a 26.7% increase in trade. This success was attributed to a strong 2016 product line up and resulting enhanced OEM trade. A shift in customer order timing also contributed.
Investment in the recently acquired Marzocchi bike division continued through the period. As a percentage of sales, operating expenses improved to 24.2% for the first quarter of fiscal 2016 from 25.4% in the first quarter of fiscal 2015.
The firm’s gross margin increased to 31.3%, up from 27.2% in Q1 last year. The adjusted EBITDA was $11.5 million compared with $9.4 in the same period.
Net Income totaled $3.3 million, or $0.09 per diluted share, compared to $0.8 million, or $0.02 per diluted share in the same period last fiscal year.
One of the few negative impacts came from losses in foreign currency transactions, including costs incurred in one of the company’s recent acquisitions, though it was not specified which.
In the second quarter the business expects sales in the range of $95 to $101 million.