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Sep 29, 2023
Fox Q3 2023 Earnings Report
Reported third quarter fiscal 2023 financial results and announced agreement to acquire Marucci Sports.
Key Takeaways
Fox Factory Holding Corp. reported a decrease in net sales by 19.1% to $331.1 million compared to the third quarter of fiscal 2022. Despite the sales decline, the company maintained a strong adjusted EBITDA margin of 19.2%. They also announced a share repurchase plan and an agreement to acquire Marucci Sports, LLC.
Net sales decreased by 19.1% to $331.1 million compared to Q3 2022.
Net income was $35 million, with earnings per diluted share of $0.83 and a net income margin of 10.7%.
Adjusted EBITDA margin remained strong at 19.2%, despite lower revenue.
The company announced a share repurchase plan for up to $300 million of common stock and signed an agreement to acquire Marucci Sports, LLC.
Revenue by Segment
Forward Guidance
The company expects net sales in the range of $300 million to $340 million and adjusted earnings per diluted share in the range of $0.75 to $1.00 for Q4 2023. For the full fiscal year 2023, they anticipate net sales at the low end of $1.43 billion to $1.47 billion and adjusted earnings per diluted share at the low end of the range of $4.20 to $4.45.
Positive Outlook
- Expected net sales between $300 million and $340 million for Q4 2023.
- Q4 2023 adjusted earnings per diluted share are projected to be between $0.75 and $1.00.
- Full-year net sales are expected to be at the lower end of the $1.43 billion to $1.47 billion range.
- Full-year adjusted earnings per diluted share are expected to be at the lower end of the $4.20 to $4.45 range.
- Company reaffirms 2025 vision of $2 billion sales and 25.0% adjusted EBITDA margin
Challenges Ahead
- Full year 2023 sales guidance adjusted to $1.43 - $1.47 billion primarily due to impact from the United Auto Workers strike
- continued inventory destocking in SSG markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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