Fox Racing’s Quarterly Sales Soften
Fox Racing saw sales soften in the quarter ended Dec.25 amid broader macroeconomic pressures, according to parent company Vista Outdoor.
Vista doesn’t report the quarterly results of each of its brands, but Vice President and Interim CFO Andrew Keegan noted the Fox business generated $67 million in the quarter. Keegan said sales fell, but did not specify by how much.
Keegan said part of the pressure for Fox is coming from its sizable international business, which has been negatively impacted by exchange rates.
Still, Keegan went on to say Fox is meeting earnings before interest, taxes, depreciation, and amortization expectations internally, with more opportunities for further synergies to be created between Fox and Bell Helmets. So far, Keegan said the company is optimistic about the synergies that have already been created between the two brands.
Vista Outdoor closed on its acquisition of Fox in August. The company was purchased for $540 million, in addition to a $50 million earnout based on financial targets. Fox’s sales at the time of the closing were projected to be $350 million in 2022, with EBITDA of $55 million.
Vista Outdoor’s action sports segment includes Fox, Bell, Giro, Blackburn, Krash, Copilot, and Raskullz. The group, which was recently created, is now being headed up by Fox Racing President Jeff McGuane, who was named president of the action sports segment late last month.
The action sports businesses are part of Vista Outdoor’s Outdoor Products division, which is expected to be spun off into its own publicly traded entity this year.
Vista operates a portfolio of 41 brands and reported on Thursday that its total sales are down 5% from a year ago to $755 million in its fiscal third quarter ended Dec. 25. The company had net income of $65.1 million, which was narrowed from the $118.1 million it recorded in the year-earlier period.
The quarterly update also came with news that the company’s board replaced Chris Metz with board member Gary McArthur as interim CEO while a search is conducted for a permanent replacement.
The company noted a “loss of confidence in [Metz’s] leadership” by the board and said the decision was not related to “financial reporting or internal controls” issues.