WESTPORT, CT (BRAIN)—Fox Racing Shox saw a sales decline in the first half of the year as OEM suspension business slowed amid the economic downturn.
Compass Diversified Holdings, parent company of Fox, spoke about Fox’s performance during a conference call with analysts on Monday morning.
For the six months ending June 30, Fox sales declined from $57.8 million last year to $49.9 million this year. Sales outside the U.S. went from $40.1 million for the first six months of 2008 to $34.4 million in 2009. Profits slid from $2.9 million for the first half of 2008 to $1.1 for the same period this year.
For the second quarter of 2009, net sales dropped from $34.4 million in 2008 to $29.8 million during the same quarter in 2009.
Even with the slowdown, Compass execs believe Fox is poised for future successes.
“Fox continues to benefit from strong brand recognition as we seek to profit from entering new verticals including military off road applications such as partnering with Ford on the F-150 Raptor,” said Jim Bottiglieri, chief financial officer for Compass. “Demand among market enthusiasts remained strong despite weak economic conditions. By leveraging our brand equity and realizing the gains from operating initiatives we intend to drive future performance in this business.”
For more details on Fox’s plans to expand further into the military category, read the September issue of Bicycle Retailer & Industry News magazine.