Fox Factory’s bicycle parts division – made up of the primary suspension label, Marzocchi, Race Face and Easton Cycling – has recorded a 10.3% first quarter growth in the period ended March 30th.
Driven primarily by OE sales bike revenue totalled $57.7 million in the first quarter, rising from $52.3 million last year.
Paired with the powered vehicle trade sales increased by 22.1% to $129.8 million. Gross Margin increased by 40 basis points to 32.1 percent over last year’s 31.7%.
“We started the year with record quarterly sales driven by strength in both our powered vehicle and bike offerings resulting in sales and profitability above our expectations,” said Larry L. Enterline, Fox’s CEO. “Looking ahead, our team remains committed to further building Fox’s brand presence in our existing powered vehicle and bike categories and we believe Fox’s differentiated market position will continue to fuel our expansion in the diverse end markets we serve.”
Speaking to investors on Wednesday afternoon CFO Zvi Glasman praised the bike division’s progress as exceeding target growth.
Meanwhile Fox president Mario Galasso reiterated that Marzochhi will now sit below the Fox family, something that is now trickling through in the market.
Also hitting a price, Fox’s expansion of the Rhythm fork family will offer OEs options at lower prices than Fox normally offers.
Elsewhere in the financials it was shown that Fox’s legal battles with SRAM continued to add to overall legal costs of around $800,000 in the quarter.