Q3 2024 Fox Factory Holding Corp Earnings Call Transcript
Key Points
- Fox Factory Holding Corp (FOXF) reported a sequential revenue increase of 3.1% from the second quarter and an 8.5% increase compared to the prior year.
- The bike business showed strong performance with a 22% sequential growth, following a 52% increase in the previous quarter.
- The acquisition of Marucci contributed positively to the company's growth, with Marucci achieving another record quarter.
- Fox Factory Holding Corp (FOXF) is implementing strategic initiatives to optimize costs, including plant closures and efficiency improvements.
- The company is focusing on diversification and expansion within the aftermarket, which has shown resilience and growth potential.
- Fox Factory Holding Corp (FOXF) faced challenges with OEM partners reducing their demand forecasts, impacting revenue.
- Ongoing quality issues and model year changeovers at automotive OEM partners affected chassis mix and availability.
- The company's gross margin decreased to 29.9% from 32.4% in the same quarter last year, driven by shifts in product line mix and reduced operating leverage.
- Net income significantly decreased to $4.8 million from $35.3 million in the same quarter last year.
- The company anticipates continued pressure on demand in 2025, with a challenging retail environment expected to persist.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Fox Factory Holding Corp's. Third Quarter Fiscal 2024 Earnings Conference Call. (Operator Instructions) Please note, this conference is being recorded.
I'd now 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 Third Quarter 2024 Earnings Conference Call. I'm joined today by Mike Dennison, Chief Executive Officer; and Dennis Schemm, Chief Financial Officer and President of the Aftermarket Applications Group.
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
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