SCOTTS VALLEY, Calif. (BRAIN) — Fox sales hit $142.5 million over the first six months of 2014, up 14 percent compared to the same period last year. The sales increase reflects a 35 percent growth in powered vehicle products and a 2 percent growth in mountain bike products.
“Premium mountain bikes continue to buck industry trends and should continue to benefit us over the long term,” said Larry Enterline, FOX's chief executive officer.
Enterline noted the company’s business may slow during the third quarter, due to growing lead times from two major component suppliers. If manufacturers cannot completely build and ship the bikes, they do not need the other parts for the build. This pushes some of Fox’s expected third quarter sales into the fourth quarter, but Enterline did not think this would impact sales for the year. The company still expects its total 2014 year sales to hit $300 to $320 million.
The company’s sales over the second quarter were up $16.1 million, a 23 percent increase over 2013. The jump in sales over the second quarter reflects a 53 percent sales growth in Fox’s powered vehicle products. Sales of bike products were up 7 percent over the quarter. The increase in Fox’s powered vehicle sales is due mostly to the acquisition of Sport Truck, a retailer of aftermarket suspension products, early in the year.
The company announced that it shipped more than 30 percent of its complete fork sales from its Taichung, Taiwan, factory during the first half of the year. Fox hopes to have that factory fully online for fork production by the end of 2014, and able to produce its full shock line by the end of 2015.
The company expects its Taichung factory will provide 85 percent of its complete fork production to support its Taiwanese customers. The company will continue to produce about 15 percent of its complete forks in California to support U.S. manufacturers.