Fox Factory Holding Corp. (FOX)

Fox Factory Holding Corp.

Introduction

Originally incorporated in 2007, Fox Factory Holding Corp. (“FOX”) is a global designer, manufacturer, and marketer of ride dynamics products for various bicycles, off road vehicles, all-terrain vehicles, trucks, snowmobiles, specialty vehicles, and motorcycles. Their products focus on the dynamic movement interactions of the rider, vehicle, and terrain in an effort to improve control and performance. Sales are primarily made to leading action sports original equipment manufacturers (“OEMs”), as well as direct sales of aftermarket products to customers through distribution and dealer networks.

Findings

FOX is classified within the Other Motor Vehicle Parts Manufacturing industry, and more specifically,

In 2014, FOX pursued acquisitions of Sport Truck, USA Inc., Race Face Performance Products, and Easton Cycling Canada Inc. These acquisitions were pursued in order to achieve their strategy of expanding into new categories and markets, and expanding their platform through acquisitions.

Corporate Values within FOX include innovation, a high level of performance, and maintaining reliability. The company culture is based on the slogan “Innovation and Growth”. They encourage their employees to seek new ideas and capitalize on potential in order to stay competitive in their market. This includes the willingness to expand into new markets to grow sales, and the emphasis to maintain high quality and performance in order to retain and grow a loyal customer base.

FOX has expanded substantially in the past three years. Sales has increased steadily over this time, and profits are consistently increasing, with a large increase in 2013 after the company went public in August of that year. The recent acquisition of Sport Truck contributed to a large increase in sales of FOX’s Powered Vehicle product line. Their Mountain Bike product line sales increased in 2013, but decreased slightly in 2014 due to a decline in

There is also concern in FOX’s transition from primarily U.S. based manufacturing to manufacturing based in Taiwan. FOX is involved in multiple community based organizations, including Bike2Work Santa Cruz, The United Bicycle Institute, and The Off-Road Business Association. The organizations they support encourage healthier lifestyles, developing student-athletes, and preserving bike trails and the surrounding environment. Fox endeavors to give back to the community and encourage environmental