“Return to seasonality” hits Fox Factory bike-linked sales -30%

While Fox Factory as a whole had a positive Q1 (running to 31 March) 2023, the bicycle-related division had a sizeable decline in fortunes.

Sales in the Specialty Sports Group were down 30%, offset by Fox’s diversity in divisions including Powered Vehicle Sales (up 35%). Overall sales were up 5.8% to $399.9 million (2022 Q1: $378 million).

The firm noted that not just higher levels of inventory had hit the bicycle market, but a return to seasonality – likely a nod to a return to some kind of normality after the drastic disruption related to Covid.

That dip in fortunes follows a slow down in Q4, which was part of another record year – Fox Factory’s bicycle goods segment was up 17.6% across all of 2022. Arguably that bears some comparison with fellow component brand Shimano, which saw sales down in Q1 2023, against a very strong comparison year in 2022. Industry watchers will no doubt keenly eye financials for the coming quarters, when the cycle market’s natural seasonal decline over the winter is no longer affecting the figures.

Mike Dennison, FOX’s Chief Executive Officer nodded to the overall “bumpy economic and demand environment” as well as “shifting demand”.

Overall profit rises were down to lower material costs and increased efficiencies at its North American facilities.