By Kelly Cloonan

Shares of Fox Factory declined after the company slashed its full-year outlook, pointing to weakness in its specialty-sports segment as its distributors and retail partners cut down inventory on weak consumer demand.

The stock slid 24% to $16.62 and touched a 52-week low of $16.04 earlier in the session. Shares are down 45% this year.

The specialty-sports-products company now expects adjusted earnings per share of 92 cents to $1.12 for the year, down from $1.60 to $2 previously. It now guides for sales of about $1.45 billion to $1.48 billion, compared with a prior range of $1.45 billion to $1.51 billion.

The updated outlook came as Fox Factory's specialty-sports segment underperformed expectations in the third quarter. Sales slumped 11% for the unit as original equipment manufacturers, distributors and retail partners cut down on their inventory levels due to softer consumer demand, Chief Executive Mike Dennison said during a call with analysts.

"The broader macro concerns surrounding consumers remain a challenge," Dennison said, adding, "Retailers have become much more sensitive to their inventory positions."

Looking ahead to next year, the company expects economic conditions will be increasingly challenging, Dennison said.

"Interest rates, while declining, remain elevated and continue to constrain consumer spending and business investment," he said. He also noted a softer labor market, slowing job growth and rising unemployment.

For the third quarter, the Duluth, Ga., company swung to a loss of $634,000, or 2 cents a share, compared with a profit of $4.78 million, or 11 cents a share, a year earlier.

Adjusted earnings per share were 23 cents, below estimates of 55 cents a share according to analysts polled by FactSet.

Revenue rose 4.8% to $376.4 million, missing analyst expectations of $382.6 million.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

November 07, 2025 14:24 ET (19:24 GMT)

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