Fox(US:FOXF)2025-11-06 22:56Financial 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].