DULUTH, Ga. (BRAIN) — Following the sale of its Marucci business and the resignation of longtime CEO Mike Dennison, Fox Factory reported its sales were down 3.7% through the first three fiscal quarters of the year and 10.1% in the third quarter.
"This has been a quarter of significant change for Fox, and we have taken decisive steps to position the company for improved execution," said Interim CEO Doug Grimm. "The divestment of Marucci simplified our portfolio, increased our focus on our core product offerings and allowed us to substantially reduce our debt," he added.
The company gave an early look at its third quarter results and updated fiscal forecasts as it announced Dennison's resignation last month. The company said Grimm is not a candidate for the permanent CEO position and has begun an executive search.
In the third quarter, net sales were $338.4 million, a decrease of 10.1% from last year. Fox said the decrease reflects a $24.0 million, or 20.4%, decrease in its Aftermarket Applications Group, a 14.4% decrease in Specialty Sports Group sales, and a 4.1%, increase in Powered Vehicles Group sales.
The SSG business unit includes all of Fox's bicycle-related businesses. It also included Marucci Sports, a softball/baseball equipment brand that Fox sold for $225 million in September, after paying $572 million for it two years earlier. Fox said the quarterly decline in SSG net sales came primarily from Marucci's sales slump. Marucci contributed approximately $33 million in the quarter, compared to approximately $49.2 million in the same quarter last year. It also said order timing and channel destocking in its bike businesses contributed to the quarterly decline.
In the first nine months of the year, which ended Oct. 2, Fox's sales were $1.065 billion, a decrease of 3.7% compared to the same period last year. Its revenues on the nine-month period included approximately $14 million from IEEPA tariff refunds.
Fox updated the outlook it provided last month. It's now calling for fourth quarter net sales of $287-$313 million, and fiscal 2026 net sales of $1.35-$1.38 billion. The fourth-quarter results exclude Marucci sales while the full-year guidance includes Marucci results through Sept. 25.
