DULUTH, Ga., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (Nasdaq: FOXF) (the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, will announce results for the fourth quarter ended January 2, 2025, on Thursday, February 26, 2026, after the market close. The Company will host a conference call with members of the executive management team to discuss these results with additional comme ...

Group 1 - Fox Factory Holding Corp. is considered a cheap stock to buy for the next three years despite recent challenges [1] - Roth Capital has lowered the price target for Fox Factory to $19 from $21, maintaining a Neutral rating due to declines in the Bike and Marucci segments [1][2] - In Q3 2025, Fox Factory reported a 5% year-over-year increase in net sales, totaling $376.4 million, but experienced a net loss of $0.6 million compared to a net income of $4.8 million in the same quarter last year [1] Group 2 - The company's performance was bolstered by resilience in its Powered Vehicles Group and aftermarket accessories, along with successful footprint consolidation aimed at long-term margin expansion [2] - Fox Factory is on track to achieve its $25 million cost reduction target for the fiscal year, although this was offset by underperformance in the Specialty Sports Group, particularly the Marucci brand [2]

分组1 - Greg Branch, Founder and Managing Partner at Branch Global Capital Advisors, emphasizes the importance of focusing on long-term economic tailwinds rather than short-term market fluctuations, predicting a strong year for investors in 2026 with double-digit earnings growth and healthy GDP growth [1][2] - Branch highlights a rotation into cyclical and high-beta stocks, suggesting that sectors like financials and minerals will benefit from earnings growth during a cyclical recovery, driven by supply-demand tightness [2] - Michael Farr from Farr Miller & Washington believes the long-term market trend remains upward despite potential pullbacks, indicating that the economy continues to grow and the Fed may be easing more than necessary [3] 分组2 - Coty Inc. (NYSE:COTY) is identified as a cheap stock with a forward P/E ratio of 7.25 and an expected EPS growth rate of 34.18% over the next 3-5 years, although recent downgrades from analysts raise concerns about its leadership transition [8][9][10] - Fox Factory Holding Corp. (NASDAQ:FOXF) has a forward P/E ratio of 13.19 and an expected EPS growth rate of 34.93% over the next 3-5 years, but it faces challenges with declines in certain segments and a recent net loss of $0.6 million, contrasting with previous net income [11][12][13]

Market Overview - The CNN Money Fear and Greed index showed some easing in the overall fear level, remaining in the "Extreme Fear" zone with a current reading of 21.1, up from 18.3 [5][6] - U.S. stocks settled mixed, with the Nasdaq Composite falling approximately 0.2% and declining 3% over the past week, while the S&P 500 and Dow each declined more than 1% [1] Economic Sentiment - The University of Michigan's consumer sentiment index dropped to its lowest level since June 2022, indicating increased investor anxiety regarding the labor market and broader economy [1] - The subindex tracking current economic conditions recorded the worst reading since the survey began in 1951 [2] Company Performance - Fluor Corp. (NYSE:FLR) shares gained over 2% after reporting third-quarter results [2] - Fox Factory Holding Corp. (NASDAQ:FOXF) shares fell 25% following worse-than-expected third-quarter financial results and below-estimate fourth-quarter guidance [2] Sector Performance - Most sectors on the S&P 500 closed positively, with energy, utilities, and real estate stocks showing the biggest gains [3] - Communication services and information technology stocks closed lower, bucking the overall market trend [3] Upcoming Earnings - Investors are awaiting earnings results from Tyson Foods Inc. (NYSE:TSN), Interpublic Group of Companies Inc. (NYSE:IPG), and Occidental Petroleum Corp. (NYSE:OXY) [4]

Core Insights - Fox Factory Holding (FOXF) reported revenue of $376.36 million for the quarter ended September 2025, reflecting a year-over-year increase of 4.8% but falling short of the Zacks Consensus Estimate by 1.72% [1] - The company's EPS was $0.23, a decrease from $0.35 in the same quarter last year, resulting in an EPS surprise of -58.93% compared to the consensus estimate of $0.56 [1] Financial Performance - The Aftermarket Applications Group generated net sales of $117.77 million, exceeding the average estimate of $108.15 million, with a year-over-year increase of 17.4% [4] - The Powered Vehicles Group reported net sales of $125.87 million, surpassing the estimated $114.9 million, marking a 15.1% increase compared to the previous year [4] - The Specialty Sports Group's net sales were $132.72 million, which was below the average estimate of $161.45 million, indicating a year-over-year decline of 11.2% [4] Stock Performance - Over the past month, shares of Fox Factory Holding have returned -5.1%, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

分组1 - Fox Factory Holding (FOXF) reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.56 per share, and down from $0.35 per share a year ago, representing an earnings surprise of -58.93% [1] - The company posted revenues of $376.36 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.72%, but up from $359.12 million year-over-year [2] - Fox Factory Holding shares have declined approximately 24.4% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $367 million, and for the current fiscal year, it is $1.73 on revenues of $1.48 billion [7] - The Automotive - Domestic industry, to which Fox Factory Holding belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - For the three months ended October 3, 2025, net sales increased by $17.3 million, or 4.8%, to $376.4 million compared to $359.1 million for the same period in 2024[164]. - Gross profit for the three months ended October 3, 2025, was $114.5 million, representing a gross margin of 30.4%, compared to $107.5 million and 29.9% for the same period in 2024[162]. - The company reported a net loss of $0.7 million for the three months ended October 3, 2025, compared to a net income of $4.8 million for the same period in 2024[162]. - Consolidated net sales for the nine months ended October 3, 2025 increased by $65.1 million, or 6.3%, to $1,106.2 million, driven by increased demand for aftermarket products and motorcycle business expansion[178]. - For the nine months ended October 3, 2025, the company reported a net loss of $257.7 million, a decrease of $264.4 million from a net income of $6.7 million for the same period in 2024, representing a change of (3,946.3)%[186]. Operating Expenses - Operating expenses for the three months ended October 3, 2025, totaled $99.4 million, up from $88.7 million in the same period in 2024[162]. - Total operating expenses for the three months ended October 3, 2025 were $99.4 million, an increase of $10.7 million, or 12.1%, driven by higher general and administrative, sales and marketing, and research and development expenses[166]. - Total operating expenses for the nine months ended October 3, 2025 were $558.1 million, a significant increase of $282.8 million, or 102.7%, primarily due to a goodwill impairment charge of $262.1 million[181]. Cost of Sales - The cost of sales as a percentage of net sales decreased to 69.6% for the three months ended October 3, 2025, from 70.1% for the same period in 2024[163]. - Cost of sales for the three months ended October 3, 2025 increased by $10.3 million, or 4.1%, to $261.9 million compared to the same period in the prior year, primarily due to increased sales and tariffs[165]. - Cost of sales for the nine months ended October 3, 2025 increased by $45.6 million, or 6.3%, to $765.1 million, with a gross margin decrease of 10 basis points to 30.8%[179]. Income and Loss - Income from operations decreased by $3.7 million, or 19.7%, to $15.1 million for the three months ended October 3, 2025 compared to the prior year[167]. - Loss from operations for the nine months ended October 3, 2025 was $217.0 million, a decrease of $263.3 million, or 568.7%, compared to the prior year[182]. - Net loss for the three months ended October 3, 2025 was $0.7 million, a decrease of $5.5 million, or 114.6%, from net income of $4.8 million in the same period last year[171]. Market Conditions - The company faces headwinds from high interest rates, high vehicle costs, and macro-economic conditions impacting industry and consumer demand[164]. - Interest expense for the three months ended October 3, 2025, was $13.9 million, slightly down from $14.2 million in the same period in 2024[162]. - Interest and other expense, net for the nine months ended October 3, 2025 decreased by $1.7 million, or 4.2%, to $39.2 million, attributed to foreign currency exchange rates[183]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended October 3, 2025, was $42.8 million, a decrease from $50.1 million in the same period of 2024[195]. - The company used $27.2 million in investing activities for property and equipment additions during the nine months ended October 3, 2025, compared to $42.5 million in the same period of 2024[199]. - As of October 3, 2025, the company held $12.7 million of its $65.4 million cash and cash equivalents in accounts of subsidiaries outside the U.S.[194]. Future Outlook - The company expects that cash on hand, cash flows from operations, and availability under its Credit Agreement will be sufficient to fund operations during the next 12 months[196]. - Interest rate volatility may impact borrowing costs and overall financial condition, with significant increases potentially leading to higher interest expenses on variable-rate debt[213]. - The company utilizes interest rate swaps to manage exposure to interest rate fluctuations, enhancing predictability[213]. - There have been no material changes to the disclosures regarding market risk since the last annual report filed with the SEC[214].

Financial Data and Key Metrics Changes - The company reported net sales of $376.4 million for Q3 2025, representing a 5% increase year-over-year [6] - Adjusted EBITDA for the quarter was $44.4 million, up 6% year-over-year [6][27] - Gross margin improved to 30.4% from 29.9% in the same quarter last year, driven by favorable shifts in product line mix [25] - Net loss for Q3 was $0.6 million, or $0.02 loss per diluted share, compared to net income of $4.8 million, or $0.11 per diluted share in the same period last year [27] Business Line Data and Key Metrics Changes - The PVG segment achieved net sales of $125.9 million, a 15% growth year-over-year [13] - AAG reported net sales of $117.8 million, up 17.4% year-over-year [16] - SSG segment saw net sales of $132.7 million, down 11% year-over-year [18] Market Data and Key Metrics Changes - The automotive OE business remained stable, benefiting from premium vehicle SKUs, despite supply chain disruptions [13] - The power sports business is stabilizing as dealer inventories improve, with growth from new customers offsetting softness in off-road products [13] - The bike business is facing challenges due to labor issues and moderated OEM purchases, but new product launches are performing well [19] Company Strategy and Development Direction - The company is focused on strategic customer engagement and performance-defining innovation, with significant investments in product launches [9][32] - A cost reduction target of $25 million is on track for the fiscal year, with facility consolidations completed [11][28] - The second phase of optimization strategy is being prepared for 2026, focusing on maximizing efficiencies and improving balance sheet leverage [12][31] Management's Comments on Operating Environment and Future Outlook - Management noted an increasingly challenging macroeconomic environment, with elevated interest rates and a softening labor market impacting consumer spending [22][23] - The company is redoubling its focus on margin enhancement and prudent capital spending to drive free cash flow [23] - Despite challenges, management remains confident in the strategy to deliver premium performance products and the operational foundation for future growth [23][32] Other Important Information - The company has reduced total debt by $17.4 million year-to-date, maintaining a strong liquidity position [28] - Adjusted net income for Q3 was $9.9 million, or $0.23 per diluted share, down from $14.8 million, or $0.35 per diluted share in the prior year [27] Q&A Session Summary Question: Can you quantify the year-over-year revenue progression for SSG on the bike side? - Management indicated that the first half of 2025 had higher revenue due to new product launches, with a focus on retail inventory management for Q4 [34][35] Question: Can you quantify the impact of the aluminum supplier fire on Q4 revenue guidance? - Management acknowledged that the fire is a significant issue affecting both PVG and AAG, with expectations for resolution by mid-Q1 [42] Question: What are the expectations for growth in 2026 given the challenging macro environment? - Management emphasized the importance of delivering premium performance products and optimizing business operations to ensure profitability, despite external challenges [46]

Financial Performance - Net sales for Q3 fiscal 2025 increased by 4.8% year-over-year to $376.4 million, with year-to-date net sales up 6.3%[4] - AAG net sales rose by 17.4% to $117.8 million, while PVG net sales increased by 15.1% to $125.9 million; SSG net sales decreased by 11.2% to $132.7 million[5] - Adjusted EBITDA for Q3 fiscal 2025 was $44.4 million, reflecting a 5.7% year-over-year increase, with an adjusted EBITDA margin of 11.8%[10] - The company reported a net loss of $0.6 million, or $0.02 per diluted share, compared to a net income of $4.8 million, or $0.11 per diluted share, in the prior year quarter[9] - Gross margin improved by 50 basis points year-over-year to 30.4%, driven by favorable shifts in product line mix[6] - Total operating expenses for Q3 fiscal 2025 were $99.4 million, or 26.4% of net sales, up from $88.7 million, or 24.7% of net sales in Q3 fiscal 2024[7] - For Q4 fiscal 2025, net sales are expected to be in the range of $340 million to $370 million, with adjusted earnings per diluted share projected between $0.05 and $0.25[18] - For fiscal year 2025, net sales are now expected to be between $1.445 billion and $1.475 billion, with adjusted earnings per diluted share in the range of $0.92 to $1.12[18] Balance Sheet and Cash Flow - Total current assets as of October 3, 2025, were $758,814 thousand, an increase from $727,680 thousand as of January 3, 2025[29] - The company's total liabilities decreased slightly to $1,019,100 thousand as of October 3, 2025, from $1,033,644 thousand as of January 3, 2025[29] - Cash and cash equivalents decreased to $65,372 thousand as of October 3, 2025, down from $71,674 thousand as of January 3, 2025[29] - The company reported net cash provided by operating activities of $42,766 thousand for the nine months ended October 3, 2025, compared to $50,111 thousand for the same period last year[33] Operational Insights - Operating expenses for the three months ended October 3, 2025, totaled $99,351 thousand, compared to $88,677 thousand for the same period last year, indicating an increase of 11.9%[31] - The adjusted operating expense for the three months ended October 3, 2025, was $85,671 thousand, compared to $75,760 thousand for the same period in 2024, reflecting an increase of 13.5%[46] - The company reported a goodwill impairment of $262,129 thousand for the nine months ended October 3, 2025[40] Market Outlook and Risks - The company anticipates a challenging macroeconomic environment for fiscal year 2026, impacting consumer spending and business investment[19] - The company emphasizes that forward-looking statements regarding future performance and financial results are subject to significant uncertainties and should not be overly relied upon[49] - Key risks include supply chain disruptions, ability to maintain profitability, and adapting to changes in tax laws and international trade policies[49] - The company acknowledges potential impacts from global events, such as the Russia-Ukraine conflict and inflation, on its operations and market conditions[49] - The company is cautious about its international growth and the potential for strategic acquisitions[49] Product Development and Brand Strategy - The company aims to improve operating efficiencies and expects future sales growth, although specific figures are not provided[49] - There is a focus on developing new and innovative products to expand into new categories and end-markets[49] - The ability to maintain relationships with professional athletes and race teams is crucial for the company's brand image[49] - The company is monitoring consumer preferences and competition in the performance-defining products market[49] - Legal and regulatory developments, including environmental regulations, are highlighted as significant factors affecting the company's operations[49]