Fox(US:FOXF)2025-11-06 21:10Financial 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]