WESTPORT, CT (BRAIN)—Fox Racing Shox reported a 14.2 percent decline in first quarter sales due to slow OEM orders in its bike division, according to earnings reports released on Friday.
Fox’s net sales were $20.1 million during the first three months of 2009, compared with $23.4 million for the same time period in 2008. International sales dropped from $15.3 million during first quarter to 2008 to $13.3 million in 2009. Loss from operations dropped from $198,000 in 2008 to $849,000 this year.
The sales decline was partially offset by increases of $300,000 in aftermarket and service revenue.
“Year to date, we have had some weaknesses in sales in bike OEM orders, which we attribute to a dramatic decline in inventory throughout the entire bike supply chain,” said Jim Bottiglieri, chief financial officer of Compass Diversified Holdings, Fox’s parent company. “…We believe that the inventory excess is beginning to be resolved and that the in-demand high-end mountain bike category is holding up well.”
Bottiglieri noted that the first quarter is typically not indicative to how the business will perform for the rest of the year. Additionally, Fox’s nonbike sectors, like power sports and military, are performing well.