Fox Factory Inc. reported sales of $34.7 million in the three months ended June 30, up 16.1% from the year-ago quarter, according to a financial report released by its parent company Compass Diversified Holdings, Inc.
The company said that while it continues to increase market share in its core mountain bike business, most of the growth came from increased sales of suspension products to Ford Motor Co. for use in its F-150 Raptor off-road pickup and sales to ATV EOMS. Based in Watsonville, CA, Fox designs, manufactures and markets high-end suspension products for mountain bikes, all-terrain vehicles, snowmobiles and other off-road vehicles. Fox acts as both a tier one supplier to leading action sport original equipment manufacturers and provides after-market products to retailers and distributors.
“We are very pleased by the performance of Fox during the first half of the year and expect continued growth in this business as bookings for the remainder of 2010 are up significantly from 2009 levels,” said Joe Massoud, CEO for Compass Diversified Holdings, Inc.
Net sales outside the United States, principally Asia, reached $21.0 million for the second quarter.
Gross margins remained essentially flat at 28.5% of sales. SG&A expenses, meanwhile, rose just 8.3% to $5.4 million. That contributed to a 48.8% increase in income from operations, which reached $3.0 million during the quarter.