DULUTH, Ga. (BRAIN) — Fox Factory reports its net sales were up 4.8% in the third quarter, largely thanks to the company's powered-vehicle businesses. Its Speciality Sports Group (SSG), which includes its bicycle-related businesses and its ball-sports brands, had an 11.2% decrease in revenues in the quarter.
The company lowered its earnings forecast for the fourth quarter and full-year.
"SSG underperformed expectations as OEMs, distributors and retail partners actively managed toward leaner inventories ahead of year-end, which impacted our third quarter results and is reflected in our updated full-year outlook," the company said in a release.
SSG results
The SSG division includes Fox's bicycle business through the Fox, Marzocchi, Ride Concepts, RaceFace, Easton cycling and Lizardskins brands. SSG also includes Fox's Marucci business, which sells baseball and softball gear. In the third quarter, SSG sales were $133 million, down 13% from $150 million in the quarter last year. Year-to-date, SSG sales were $391 million, up from $387 million in the same period last year.
Full-company results
Fox recorded a net loss of $662,000 in the third quarter and $258 million in the first nine months.
"During the quarter, we further addressed tariff headwinds, and we made necessary investments in innovation and products," said CEO Mike Dennison in the release. "Although these investments created near-term margin pressure that wasn't in our initial expectations, we believe they are cementing our competitive position. We are updating our near-term outlook to reflect these dynamics and remain focused on executing what we can control — operational excellence, product innovation, and strengthening our balance sheet so that we're positioned to deliver enhanced operating leverage as markets recover."
New forecasts
Fox updated its expectations for the fourth quarter, when it now expects net sales of $340 million to $370 million and adjusted earnings per diluted share of $0.05 to $0.25.
For the fiscal year 2025, it now expects net sales of $1.445 billion to $1.475 billion, adjusted earnings per diluted share in the range of $0.92 to $1.12. Previously, it had forecast full-year net sales of $1.45 billion to $1.51 billion, and adjusted earnings per diluted share of $1.60 to $2.00.
