CEO Out, Full-Year Guidance Slashed as Fox Factory Warns on Q3
FOXF is trading near its 52-week low of $13.08 (13% above the low).
Summary
CEO Mike Dennison is out with immediate effect, replaced on an interim basis by independent director Douglas Grimm while the board searches for a permanent chief; Grimm gets a $1,065,000 annual salary, a $600,000 completion bonus, a $2M RSU award and up to $1.6M more in RSUs. The leadership shake-up lands alongside a broad guidance cut: full-year sales are now $1.35B-$1.38B versus prior $1.42B-$1.47B, and adjusted EBITDA drops to $140M-$150M from $176M-$196M. Management blamed weakness at Marucci Sports before its divestiture, a supply disruption and higher costs in powered vehicles, and aftermarket headwinds. The stock fell 23% to $14.30 premarket, extending the pressure from this morning's Q3 sales warning of $336M-$340M. This follows the September completion of the $225M Marucci sale that management had framed as debt-reducing; the outlook cut now undercuts that narrative. Watch for the permanent CEO appointment and Q3 results, which will show whether the operating issues are contained.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Interim CEO Douglas Grimm gets a $1,065,000 annual salary, a $600,000 completion bonus, a $2M RSU award and up to $1.6M more in RSUs.
At the time of this announcement, FOXF was trading at $14.75 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $777.6M. The 52-week trading range was $13.08 to $25.43. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.