The following is a summary of the Fox Factory Holding Corp. (FOXF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Fox Factory reported Q1 2024 revenue of $333.5 million, with adjusted earnings per share of $0.29.
The company's gross margin for the quarter was at 30.9% and adjusted gross margin was at 32.3%.
Operating expenses amounted to $94.3 million or 28.3% of net sales.
Significant revenue contribution came from various segments with $118 million from the Powered Vehicle group, $102 million from AAG, and $114 million from SSG.
Despite declines in the Powersports segment, the company managed to reduce inventory by 5% YoY due to continuous improvement efforts.
Business Progress:
Fox Factory is making strategic investments in R&D to expand its share in the OEM market and launch high margin aftermarket components.
The company expects sequential improvement in its operating results, owing to a robust product roadmap for the second half of the year.
It is initiating cost optimization within its plants to offset the impact of volume declines.
The company anticipates consistent bookings for Q2, predicts improvement in the bike segment by Q3, and launches three times more products than previous years.
Fox Factory is diversifying into aftermarket segments via its Marucci acquisition and optimizing its operational efficiency.
It has also ventured into new markets through branded upfitting in trucks and side-by-side vehicles and initiated a concierge service for direct customer connect.
More details: Fox Factory IR
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