In This Article:
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Revenue: $348.5 million, a decrease of 13% from $400.7 million in Q2 2023.
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Adjusted Earnings Per Share (EPS): $0.38.
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Adjusted EBITDA Margin: 12.7%, improved from 12.1% in the prior quarter.
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Gross Margin: 31.8%, down from 32.9% in Q2 2023.
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Net Income: $5.4 million or $0.13 per diluted share, compared to $39.7 million or $0.94 per diluted share in Q2 2023.
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Adjusted Net Income: $15.9 million or $0.38 per diluted share, compared to $51.4 million or $1.21 per diluted share in Q2 2023.
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Powered Vehicle Group Sales: $118 million, down from $140 million in the prior year.
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Aftermarket Business: 57% of sales, up from 47% in 2021 through Q2.
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SSG Net Sales: $124 million, up from $105 million last year.
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Inventory: Increased by $8.6 million or 2.3% compared to year-end 2023.
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Net Leverage: 3.46 times as of quarter-end.
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Guidance for Full Year 2024: Sales expected to be $1.407 billion to $1.477 billion; adjusted EPS of $1.40 to $1.72.
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Guidance for Q3 2024: Sales expected to be $355 million to $385 million; adjusted EPS of $0.35 to $0.50.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fox Factory Holding Corp (NASDAQ:FOXF) reported a sequential increase in revenue by 4.5% to $348.5 million for Q2 2024.
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The company's adjusted EBITDA margin improved to 12.7% from 12.1% in the prior quarter, indicating better expense control and productivity optimization.
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The aftermarket business now constitutes 57% of sales, up from 47% in 2021, showcasing successful diversification efforts.
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The bike segment showed a 52% sequential revenue increase, suggesting stabilization and nearing the end of inventory destocking.
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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.
Negative Points
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Total consolidated net sales decreased by 13% compared to the same quarter last year, reflecting ongoing macroeconomic challenges.
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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.
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The Automotive sector faces mixed demand, with issues such as excess inventory and consumer conservatism impacting sales.
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The company revised its full-year guidance downward, reflecting tempered expectations due to ongoing industry demand and quality challenges.
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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.