Fox Factory has raised its projection for 2016 having enjoyed strong Q2 performance in both bike and powered vehicle products.
The parent of Easton, RaceFace, Marzochhi and own label Fox product recorded a 2.4% increase in its bicycle division, though it was the powered division that saw the greatest appreciation, up 10.3%.
The increase in sales of powered vehicle products was primarily due to continued higher demand for on and off-road suspension products. The increase in bike product sales is attributed to the success of the company’s current bike product lines, which continue to be well received by customers.
Sales for the six months ended July 1, 2016, were $182.5 million, an increase of 10.6% compared to the same period in 2015. Sales of bike and powered vehicle products increased 11.3% and 9.7%, respectively, for the first six months of 2016 compared to the prior year period.
A 90-point gross margin increase to 31.6% was attributed to lower costs over 2015, as well as improved logistics.
“Our second quarter results were above our expectations and reflect the strength of our diversified product portfolio,” stated Larry L. Enterline, FOX’s Chief Executive Officer. “Continued execution of our operational efficiency initiatives resulted in a gross margin improvement of 90 basis points which contributed to our profitability increase for the quarter. As a result of our year-to-date performance and our team’s ability to deliver on key strategic objectives, we are able to raise our annual outlook for fiscal 2016.”
Sales for the second quarter of fiscal 2016 were $102.3 million, an increase of 5.3% as compared to sales of $97.2 million in the second quarter of fiscal 2015.
For the third quarter of fiscal 2016, the Company expects sales in the range of $106 million to $112 million and non-GAAP adjusted earnings per diluted share in the range of $0.37 to $0.41.
For the full fiscal year 2016, the Company raises its previous guidance and now expects sales in the range of $387 million to $402 million and non-GAAP adjusted earnings per diluted share in the range of $1.10 to $1.19.
The firm’s website details the following new goods for the 2017: