Fox Factory’s third quarter results show adjusted earnings in the third quarter rose by 14.4% on a 2.3% revenue gain.
“The diversification of our end markets and product applications helped us put together another solid quarter,” stated Larry L. Enterline, Fox’s chief executive officer. “We benefited from growth across our powered vehicle products and are pleased with our bike products performance, particularly in the face of a challenging industry backdrop. As we head into the fourth quarter, we are raising our fiscal year guidance as we expect to build upon our solid business momentum.”
Sales for Q3 of the fiscal year amounted to $109.0 million, up 2.7% when compared to sales of $106.2 million in the same 2015 period. The upturn reveals a 6.6% boost in sales of powered vehicle products, however bike product sales were relatively flat.
Gross margin in the third quarter sat at 32%, an 80 point decline from the same period in 2015. This, say Fox, was attributed to a shift in product mix, acquisition costs of inventory in 2016 and the knock on effect of the recent recall notice.
Net income was $13.7 million, up on last year’s $10.6 million. Adjusted EBITDA remained stable, up to $20.9 million and 19.2 percent of sales, over last year’s $20.7 million and 19.5%.
Sales for the nine months ended September 2016 totaled $291.5 million, up 7.5% on the same 2015 period. Bike product sales rose 6.8% Year-on-year.
Outlining guidance for the period ahead, Fox expects fourth quarter sales to sit at around $104 to $110 million. This leads the company to raise its previous full-year guidance, with between $395.5 million and $401.5 million in sales expected.