DULTUH, Ga. (BRAIN) — Fox Factory announced Friday that Mike Dennison is stepping down as CEO and board member. The board has appointed board member Doug Grimm as interim CEO and hired an executive search firm to find a permanent replacement for Dennison, who had been CEO since 2019.
The company also announced that its third-quarter results will be below expectations and lowered its fiscal year outlook.
Fox's fiscal quarter ended Oct. 2. On Friday it said preliminary unaudited figures show quarterly net sales of $336 million to $340 million, compared to previous guidance of $355 million to $380 million. Net sales include approximately $33 million in sales from Marucci Sports through the sales of that brand on Sept. 25.
"Third quarter results were below the company's expectations, primarily due to lower sales and margin at Marucci Sports, which did not deliver to expectations prior to the closing; lower than expected sales and margins in the Powered Vehicles Group driven by a supply disruption and the associated higher operating costs, and unfavorable mix; operating challenges within the Aftermarket Applications Group in its upfit business; and to a lesser extent, softer than expected bike sales in the Specialty Sports Group," the company said.
Fox is lowering its outlook for the fourth quarter of and full-year fiscal 2026 based on the Marucci sale and the preliminary third-quarter results.
it is now forecasting full-year net sales of $1.35 billion to $1.38 billion, compared to prior guidance of $1.42 billion to $1.47 billion. The new forecast for full-year EBITDA is $140 million to $150 million, excluding approximately $14 million of IEEPA tariff refunds received in the second and third quarters, compared to prior guidance of $176 million to $196 million.
