Operating income at Fox Factory reached $3.2 million on net sales of $34.4 million for the second quarter, up 88% from $1.7 million on net sales of $26.8 million for the same period a year earlier, according to financial information released by its parent Compass Group Diversified Holdings, Inc.
Gross margins improved 360 basis points to 27.6%, while operating margins rose 286 basis points to 9.18%.
Fox designs, manufactures and markets high-end suspension products for mountain bikes, all-terrain vehicles, snowmobiles and other off-road vehicles. In January, Compass invested $80.4 million for a 76% stake in the company. That sum included a loan to founder Robert Fox Jr., who retains 24% interest in the company.
Year-to-date earnings were $3.0 million on sales of $57.9 million. The earnings report put goodwill for Fox at $9.5 million and identified assets of $88.3 million.
