Q2 2024 Fox Factory Holding Corp Earnings Call Transcript
Key Points
- Fox Factory Holding Corp (FOXF) reported a sequential increase in revenue by 4.5% to $348.5 million for Q2 2024.
- The company's adjusted EBITDA margin improved to 12.7% from 12.1% in the prior quarter, indicating better expense control and productivity optimization.
- The aftermarket business now constitutes 57% of sales, up from 47% in 2021, showcasing successful diversification efforts.
- The bike segment showed a 52% sequential revenue increase, suggesting stabilization and nearing the end of inventory destocking.
- Marucci, part of the SSG segment, continues to perform strongly, with expectations of double-digit growth for the year and a new exclusive licensing agreement with Major League Baseball starting in 2025.
- Total consolidated net sales decreased by 13% compared to the same quarter last year, reflecting ongoing macroeconomic challenges.
- The Powered Vehicle Group (PVG) experienced a decline in net sales to $118 million from $140 million in the prior year, primarily due to lower OEM demand.
- The Automotive sector faces mixed demand, with issues such as excess inventory and consumer conservatism impacting sales.
- The company revised its full-year guidance downward, reflecting tempered expectations due to ongoing industry demand and quality challenges.
- Gross margin decreased to 31.8% from 32.9% in the same quarter last year, driven by shifts in product line mix and reduced operating leverage.
Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Fox Factory Holding Corp.'s second quarter fiscal 2024 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
And now I would like to turn the conference over to Toby Merchant, Chief Legal Officer at Fox Factory Holding Corp. Thank you, sir. You may begin.
Thank you. Good afternoon, and welcome to Fox Factory's second quarter 2024 earnings conference call. I'm joined today by Mike Dennison, Chief Executive Officer; and Dennis Schemm, Chief Financial Officer.
First, Mike will provide business updates, and then Dennis will review the quarterly results and outlook. Mike will then provide some closing remarks before we open up the call for your questions. By now, everyone should have access to the earnings release, which went out earlier this afternoon. If you have not had a chance to review the release, it's available on the
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