Fox Factory has announced an 85.5% growth in first quarter revenue growth specifically within its cycling arm, which represents a new record for the suspension and components business.
Reflecting high OEM demand for its products in the face of a drive to restock the marketplace, the $118.4 million quarterly revenue far surpasses last year’s $63.8 million Q1, albeit it is worth factoring in the impact of Covid’s early days into 2020’s results.
The expectation is that demand will remain at high levels for the foreseeable future, but as with most in the bike industry Fox itself is not without supply challenges for parts and materials outsourced. The group has not only to consider its suspension trade, but also demand for its RaceFace and Easton labels.
As a result Fox Factory raised its guidance for Q2, predicting sales of $275 to $295 million and earnings per share tipped north of a Dollar at $1.05, up $0.10. Full year expectations are now pithed at $1.11 to $1.16 billion and and EPS of $4.
The earnings were delivered in tandem with news of a trio of management additions.
“Thanks to our existing team, we have experienced tremendous growth and portfolio diversification. In order to achieve the breakthrough results we aspire to reach, we have to do things thoughtfully and with our strategic vision in mind,” commented Mike Dennison, FOX’s Chief Executive Officer. “The changes we are announcing today are part of our evolution as a company. We are investing in our future by expanding the scope of our leadership team with deliberate intention and purpose.”
President, PVG Business & Corporate Strategy
Mr. Tom L. Fletcher has been promoted to President, PVG Business & Corporate Strategy. He joined FOX in July 2020 as Senior Vice President of Strategy and Platform Development.
In his expanded role, Mr. Fletcher will leverage his diverse engineering and business experience to strengthen the front end of the PVG business, which includes the go-to-market strategy, product offerings, product engineering, sales, and marketing.
“In light of FOX’s growth over the past several years, and the PVG business in particular, it has become increasingly necessary for our senior executives to be empowered to focus on their core areas of expertise,” commented Mr. Dennison. “The continued success of the PVG business requires us to invest in additional resources to foster further growth. Mr. Fletcher’s promotion will benefit our current PVG operations by allowing Rich Winters, President, Powered Vehicles Group, to focus exclusively on the operational aspects of the business, including supply chain, manufacturing, manufacturing support infrastructure, and the streamlining of efforts to achieve the Company’s business strategy.”
Chief Legal Officer & Secretary
Mr. Toby D. Merchant joins the Company as its first Chief Legal Officer and Secretary.
Mr. Merchant has over 16 years of experience working with public and private companies on a variety of matters ranging from corporate governance, securities matters, and company-specific issues, to leading domestic and international mergers, acquisitions, and divestitures.
Chief Purpose & Inclusion Officer
Additionally, the Fox Factory recently promoted Ms. Jackie B. Martin to Chief Purpose & Inclusion Officer. She joined the Company in September 2020 as Vice President, Inclusion, Diversity & Engagement.
In her expanded role, Ms. Martin will be responsible for driving a global strategy around the Company’s commitment to (but not limited to) Inclusion, Diversity, & Engagement (ID&E), Environment, Social & Governance (ESG) Change Management, and Workforce Development. These efforts will be grounded in a purpose-led approach, engaging employees, customers, shareholders, and other key stakeholders in fostering a culture that makes a sustainable positive impact in the communities where we live, work, and play.