Fox Factory’s first quarter results have again shown the firm’s continued progress, posting a 32.6% increase in sales, with a 15.9% rise in business specifically in the bicycle division.
“We achieved sales and profitability above our expectations in the first quarter of fiscal 2017, driven by solid momentum across both our bike and powered vehicle product offerings,” stated Larry L. Enterline, FOX’s Chief Executive Officer. “As a result of our strong start to the year, we are raising our guidance for fiscal 2017. We believe the diversification of our product offerings and end markets continue to set us apart in the industry and position us well for future growth.”
It is largely favourable OEM trade, paired with new product introductions, that has seen the Fox business maintain momentum. Sales totaled $106.3 million in the quarter, a significant jump on the prior year’s $80.2 million. Gross margin increased from 31.3% in 2016 to 31.7% this year.
One point to detract from an otherwise rosy summary is an increase in operating expenses to $21.3 million. This is attributed both to investments to support growth, as well as $900,000 tied to a lawsuit relating to a patent disagreement with SRAM.
Read more over on Fox’s investor page here.