- Fox Factory Holding Corp. recently reported its second quarter 2025 results, with sales rising to US$374.86 million but net income falling to US$2.74 million compared to the prior year.
- Despite achieving growth in sales and adjusted EBITDA margin, the company revised full-year guidance to reflect ongoing tariff headwinds and their impact on earnings per share.
- We’ll now explore how Fox Factory’s lowered earnings guidance amid tariff pressures may influence its current investment narrative.
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Fox Factory Holding Investment Narrative Recap
To be a shareholder in Fox Factory Holding, you have to believe that the company’s margin improvement plans and new product partnerships can eventually offset the near-term pressure from tariffs and operational volatility across its markets. The recent revision to earnings guidance is a clear reminder that, while the short-term revenue catalyst remains driven by sales growth and OEM launches, tariff risk is presently the most significant threat to near-term results, and this news is a material development for that risk.
Of the recent announcements, Fox Factory’s updated full-year 2025 sales guidance is directly relevant; by increasing its revenue outlook while narrowing earnings targets, management points to solid demand but heightened cost pressure. This comes at a time when tariff uncertainty is weighing more heavily than production or inventory risks, highlighting just how sensitive the current investment case is to changes in input costs and supply chain disruptions.
On the flip side, investors must also watch for those early signals that OEM production issues could add another surprise in the months ahead, especially since…
Read the full narrative on Fox Factory Holding (it's free!)
Fox Factory Holding's outlook anticipates $1.6 billion in revenue and $85.8 million in earnings by 2028. This is based on a 4.4% annual revenue growth rate and a $335.4 million increase in earnings from the current loss of $-249.6 million.
Uncover how Fox Factory Holding's forecasts yield a $31.57 fair value, a 10% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community members estimate Fox Factory’s fair value between US$15.70 and US$46.29, based on four independent models. While some see upside, recent tariff-related margin compression suggests that costs and profit volatility remain key points of debate for many.
Explore 4 other fair value estimates on Fox Factory Holding - why the stock might be worth 45% less than the current price!
Build Your Own Fox Factory Holding Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Fox Factory Holding research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
- Our free Fox Factory Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fox Factory Holding's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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