Why Are Automobile Components Maker Fox Factory's Shares Tumbling Today?
Portfolio Pulse from Lekha Gupta
Fox Factory Holding Corp's shares have fallen by 20% following the release of its Q3 FY23 results, which showed a 19.1% Y/Y decline in net sales to $331.1 million, missing the consensus of $398.3 million. The company's gross margin also contracted to 32.4% due to a shift in product line mix and costs related to maintaining the skilled workforce amid a UAW strike. The company also announced a share repurchase plan for up to $300 million common shares and the acquisition of Marucci Sports, LLC from Compass Diversified Holdings for $572 million.
November 03, 2023 | 1:15 pm
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NEUTRAL IMPACT
Compass Diversified Holdings has sold Marucci Sports, LLC to Fox Factory for $572 million.
Compass Diversified Holdings has sold Marucci Sports to Fox Factory, which may impact its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Fox Factory's shares have fallen following disappointing Q3 FY23 results and a contraction in gross margin. The company has also announced a share repurchase plan and an acquisition, which may impact its stock price.
Fox Factory's shares have fallen due to disappointing Q3 FY23 results and a contraction in gross margin. The company's announcement of a share repurchase plan and an acquisition may also impact its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100