SCOTTS VALLEY, Calif. (BRAIN) — Fox Factory announced Wednesday that it plans to relocate its corporate headquarters from California to it existing offices in Georgia by the end of this year. The company also plans to relocate its aftermarket bike products distribution, sales, and service operations from Watsonville and Scotts Valley, California to Reno, Nevada.
Fox said its existing offices in Scotts Valley will remain “an essential shared services facility housing certain corporate functions.”
Fox also will add production for some powered vehicle products at a new plant in Georgia. It plans to invest up to $50 million in capital expenditures and employ up to 800 personnel in Georgia over the next five years, dependent on market and general economic conditions.
“We are pleased to announce the plans for a new state of the art campus in Hall County, Georgia,” said Larry L. Enterline, Fox’s CEO.
“The decision to expand our manufacturing and operations, relocate our headquarters, and move our aftermarket bike operations was the result of extensive research by our team and will better support the needs of our growing business over the next several years,” he continued.
Also on Wednesday, Fox announced third quarter revenues were up 38 percent to a record $175.8 million across all its divisions, including its powered vehicle business.
“Our differentiated powered vehicle and bike market positions fueled broad-based strength across our product portfolio, resulting in record sales and profitability,” said Enterline. “We are pleased with our team’s continued execution as we further expand into new and existing end markets building upon our powered vehicle and core bike category capabilities with compelling product innovation. We believe we remain well positioned for future growth and based on these strong operational and financial results as well as our outlook for the remainder of the year, we are raising our annual guidance.”
Fox said sales in its Specialty Sports Group (formerly called its Bike Group) were up 21.1 percent.
Sales for the nine months, ended Sept. 28, were $462.4 million, an increase of 30.4 percent compared to the same period in 2017. Sales in the Specialty Sports Group increased 15.9 percent over the nine-month period compared to the prior year period. The Speciality Sports Group includes the Fox Factory bike business as well as the Marzocchi, RaceFace and Easton cycling brands.
Fox also said it has spent 5.9 million so far this year on costs related to patent litigation, up from $3.2 million spent in the first three quarters last year. Fox and SRAM are engaged in several lawsuits over suspension and drivetrain intellectual property. Fox did not say if it is involved with other patent-related litigation.
The company planned a conference call with investors for later Wednesday. This story may be updated following that call.
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Author: Steve Frothingham
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