Shares of Fox Factory Holding Corp. (FOXF) soared 10.01% in Friday's pre-market session, driven by the company's fourth quarter 2024 earnings report that demonstrated its ability to deliver growth and improve profitability amid a challenging operating environment.
Fox Factory reported a 6.1% year-over-year increase in total net sales to $352.8 million for Q4 2024. Notably, the company's gross margin expanded to 28.9%, up from 27.7% in the prior-year quarter, reflecting the benefits of cost optimization efforts and operational efficiencies.
While Fox Factory posted a net loss of $0.1 million in Q4 2024, primarily due to increased interest expenses, its adjusted EBITDA rose to $40.4 million, up from $38.8 million in Q4 2023. The company also made significant progress in its $25 million cost reduction initiative, resulting in a $63 million debt paydown during the quarter.
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