Fox Factory Holding Corp., which manufactures performance-defining ride dynamics products primarily for bicycles, on-road and off-road vehicles and trucks, achieved record fourth-quarter sales, rising by 41.2 percent to $262.4 million.
This increase reflects a 44.6 percent rise in its specialty sports group sales and a 38.7 percent gain in the powered vehicles group sales. This was led by increased demand in both the original equipment manufacturer and aftermarket channels, along with the impact of SCA, a subsidiary that was acquired in March 2020.
The gross margin decreased by 0.3 basis points to 31.8 percent, hampered by higher transit costs due to the increase in demand, costs related to the transition and ramp of the U.S. manufacturing facilities, and inefficiencies due to the pandemic.
The adjusted Ebitda margin improved by 1.0 percentage point to 19.5 percent, and net income was $31.8 million, compared to $22.5 million for the year-ago quarter.
For the full year ended Jan. 1, 2021, revenues advanced by 18.6 percent from the prior year to $890.6 million. Sales of specialty sports and powered vehicle products increased 22.4 percent and 16.1 percent, respectively.
The gross margin expanded by 0.2 percentage points to 32.5 percent, the adjusted Ebitda margin advanced by 0.3 percent to 19.8 percent, while net income was down to $90.7 million, compared with $93.0 million in the prior year.
For the first quarter of fiscal 2021, the company expects sales in the range of $255.0 million to $275.0 million, while for the full year 2021, it anticipates sales in the range of $1,035 million to $1,085 million.
Fox also announced that Larry L. Enterline will retire from the role of executive chair of the board of directors on April 2, 2021. It appointed Dudley Mendenhall, who currently serves as the lead independent director and chair of the audit committee, to succeed Enterline.