Fox(US:FOXF)2025-05-08 20:09Financial Performance - Net sales for the first quarter of fiscal 2025 were $355 million, an increase of $22 million or 6.5% compared to the prior year[4] - Adjusted earnings per diluted share improved to $0.23, compared to $0.29 in the prior year period[9] - Adjusted EBITDA in the first quarter of fiscal 2025 was $39.6 million, with an adjusted EBITDA margin of 11.2%[10] - Gross margin was 30.9%, sequentially up 200 basis points from the previous quarter[4] - Net loss attributable to FOX stockholders was $259.7 million, compared to a net loss of $3.5 million in the prior year[9] - Net sales for the three months ended April 4, 2025, increased to $355.03 million, up from $333.47 million in the same period last year, representing a growth of 6.7%[26] - The company reported a net loss of $259.73 million for the three months ended April 4, 2025, compared to a net loss of $3.50 million for the same period in 2024, indicating a significant decline in profitability[26] - Adjusted EBITDA for the three months ended April 4, 2025, was $39.60 million, slightly down from $40.42 million in the prior year, reflecting a decrease in adjusted EBITDA margin from 12.1% to 11.2%[34] - Gross profit for the three months ended April 4, 2025, was $109,679,000, compared to $103,158,000 for the same period in 2024, reflecting a year-over-year increase of 6.5%[38] - Adjusted gross profit for the three months ended April 4, 2025, was $109,843,000, up from $107,643,000 in the prior year, indicating a growth of 2.0%[38] Costs and Expenses - The company estimates an annual potential impact of tariffs to be around $50 million in higher costs[14] - Research and development expenses increased to $17.04 million for the three months ended April 4, 2025, compared to $14.44 million in the same period last year, an increase of 18.0%[26] - Operating expenses for the three months ended April 4, 2025, totaled $360,266,000, significantly higher than $94,283,000 for the same period in 2024, primarily due to goodwill impairment of $262,129,000[40] - Adjusted operating expense for the three months ended April 4, 2025, was $84,415,000, compared to $80,299,000 in the previous year, showing an increase of 3.4%[40] - The operating expense margin for the three months ended April 4, 2025, was 101.5%, compared to 28.3% for the same period in 2024, indicating a substantial increase due to the goodwill impairment[40] - The adjusted operating expense margin for the three months ended April 4, 2025, was 23.8%, slightly down from 24.1% in the prior year[40] - Acquisition-related costs and expenses for the three months ended April 4, 2025, were $203,000, down from $678,000 in the same period in 2024[35] Cash Flow and Debt - Total debt as of April 4, 2025, was $709.9 million, up from $705.1 million as of January 3, 2025[12] - Cash and cash equivalents decreased to $68.6 million from $71.7 million as of January 3, 2025[12] - Cash and cash equivalents at the end of the period were $68.60 million, down from $71.67 million at the beginning of the period, a decrease of 4.4%[28] - The company experienced a net cash provided by operating activities of $0.68 million, a significant decrease from $9.35 million in the prior year[28] - Total current assets decreased to $714.10 million as of April 4, 2025, from $727.68 million as of January 3, 2025, a decline of 1.5%[24] - Total liabilities decreased to $998.67 million as of April 4, 2025, compared to $1,031.17 million as of January 3, 2025, a reduction of 3.1%[24] Future Outlook - For the second quarter of fiscal 2025, the company expects net sales in the range of $340 million to $360 million[13] - The company anticipates future growth prospects and improved operating efficiencies, although various risks may impact these expectations[42] - The company is focused on developing new and innovative products and expanding into new categories and end-markets[42] - The company is implementing cost reduction initiatives to improve margins throughout the year[3]