NEW YORK (BRAIN) — Sales in Fox Factory's Speciality Sports Group, which includes its bicycle business, were down 9.4% in the company's second quarter, compared to the same period last year.
The SSG unit had sales of $124 million in the quarter, down from $137 million in the quarter last year.
"The decrease in SSG net sales ... primarily reflects original equipment manufacturer ('OEM') order timing, and channel destocking in response to market-wide economic conditions," the company said prior to a conference call with investors Thursday. BRAIN will monitor the call.
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.
Fox Factory's other two divisions had mixed results. Sales in the Aftermarket Applications Group, which sells aftermarket products in the powered vehicle market, were down 4%. Sales in its Powered Vehicle Group were up 0.6%. Companywide, sales were $358.1 million, down 4.5%.
For the first-half, company-wide net sales were $726.8 million, a decrease of 0.4% compared to the period last year. In the first half, SSG's net sales were $234.8 million.
For the half, Fox Factory had a net loss of $10.9 million, compared to a net loss of $257 in the first half of 2025.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the half were $81.2 million and include an approximate $2 million in IEEPA tariff refunds. Despite the refunds, the EPITDA figure was down from the $88.9 million recorded in the first half last year.
The company raised its full-year guidance for net sales but reduced its adjusted EBITDA forecast. The new net sales forecast is $1.42 billion to $1.47 billion (previous forecast: $1.328-$1.416 billion). The new adjusted EBITDA forecast is $176 million to $196 million (previous forecast: $174-$203 million)
Fox said it may still recover another $8 million in IEEPA refunds, but as the timing is uncertain, it is not including that in its forecasts.
In a statement, Mike Dennison, Fox's Chief Executive Officer, alluded to the company's continued cost-cutting program as well as higher commodity, transit and fuel costs due to "geopolitical disruption." Dennison predicted those cost increases in his first-quarter remarks.
In the press release prior to the conference call, Dennison said, "Our second quarter results met or exceeded our guidance, with adjusted EBITDA margin expanding approximately 250 basis points sequentially, excluding tariff refunds. Our profit optimization actions remain on track to deliver approximately $50 million of gross cost savings this year, driven by continued execution across portfolio rationalization, supply chain, and cost discipline. A portion of what we captured in the first half was offset by higher input costs driven by geopolitical disruption and commodity inflation, including freight surcharges and fuel costs above original expectations.
"We are encouraged by signs of stabilization in powersports, bike, and aftermarket in general, while our upfit businesses continue to be constrained by limited availability of Ford F-150 chassis. Our team remains focused on sharpening the portfolio and becoming a more efficient organization that is positioned for growth and profitability."
