Fox Factory Holding Corp. Announces First Quarter Fiscal 2023 Financial Results

Achieves Quarterly Sales of $399.9 Million
Reports Earnings per Diluted Share of $0.98
Reports Non-GAAP Adjusted Earnings per Diluted Share of $1.20

DULUTH, GA – May 5, 2023 – (Motor Sports NewsWire) – Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”) today reported financial results for the first quarter ended March 31, 2023.

First Quarter Fiscal 2023 Highlights

• Sales increased 5.8% to $399.9 million, compared to $378.0 million in the same period last fiscal year
• Gross profit increased 10.8% to $133.3 million, compared to $120.3 million in the same period last fiscal year. Gross margin percentage increased 150 basis points to 33.3%, compared to 31.8% in the same period last fiscal year; non-GAAP adjusted gross margin percentage increased 180 basis points to 34.1%, compared to 32.3% in the same period last fiscal year
• Net income was $41.8 million, or 10.4% of sales and $0.98 of earnings per diluted share, compared to $48.1 million, or 12.7% of sales and $1.13 of earnings per diluted share in the same period last fiscal year
• Non-GAAP adjusted net income was $51.0 million, or $1.20 of non-GAAP adjusted earnings per diluted share, compared to $55.8 million, or $1.32 of non-GAAP adjusted earnings per diluted share in the same period last fiscal year
• Adjusted EBITDA was $79.2 million, or 19.8% of sales, compared to $71.8 million, or 19.0% of sales in the same period last fiscal year

“Thanks to our diversified product offerings and differentiated market position, we are pleased with our strong start to fiscal 2023 in a bumpy economic and demand environment. Our strong results were achieved despite shifting demand and changing product mix,” commented Mike Dennison, FOX’s Chief Executive Officer. “We also closed the acquisition of Custom Wheel House on March 3, 2023, which showcases our commitment to acquiring companies that enable our vertical integration strategy.”

Sales for the first quarter of fiscal 2023 were $399.9 million, an increase of 5.8%, as compared to sales of $378.0 million in the first quarter of fiscal 2022. This increase reflects a 35.0% increase in Powered Vehicles Group sales and a 30.0% decrease in Specialty Sports Group sales. The increase in Powered Vehicles Group sales is primarily due to increased demand in the original equipment manufacturer (“OEM”) channel and strong performance in our upfitting product lines. The decrease in Specialty Sports Group sales is driven by a return to…