Fox Factory Holding Corp. said its board appointed independent director Douglas Grimm as interim chief executive officer effective Oct. 16, replacing Mike Dennison, who stepped down from the CEO role and the board. The company also said it has started a search for a permanent CEO.
The leadership change came as Fox cut its third-quarter and full-year fiscal 2026 expectations.
For the third quarter ended Oct. 2, Fox now expects net sales of $336 million to $340 million, down from prior guidance of $355 million to $380 million. That implies a shortfall of as much as $44 million versus the top end of the prior range. The company said third-quarter net sales included about $33 million from Marucci Sports, compared with about $46 million assumed in guidance for the full quarter.
Adjusted EBITDA for the quarter is now expected at $38 million to $42 million, excluding about $12 million of IEEPA tariff refunds received during the period, versus prior guidance of $46 million to $54 million. That is a reduction of as much as $12 million from the previous range.
Fox said the quarter came in below expectations because of lower sales and margins at Marucci Sports before the divestiture closed, weaker-than-expected sales and margins in the powered vehicles group tied to a supply disruption and higher operating costs, operating issues in the aftermarket applications group’s upfit business, and softer bike sales in specialty sports.
For the fourth quarter, Fox lowered its outlook to net sales of $287 million to $313 million and adjusted EBITDA of $23 million to $29 million, both excluding Marucci Sports.
For the full fiscal year, Fox now expects net sales of $1.35 billion to $1.38 billion, down from prior guidance of $1.42 billion to $1.47 billion. The midpoint of the new range is $1.365 billion, versus $1.445 billion previously, a drop of $80 million.
Full-year adjusted EBITDA is now projected at $140 million to $150 million, excluding about $14 million of tariff refunds received in the second and third quarters, compared with prior guidance of $176 million to $196 million. The midpoint fell to $145 million from $186 million, a decline of $41 million.
Fox said about $63 million of the full-year revenue reduction reflects Marucci Sports, including about $50 million of fourth-quarter sales that had been included in prior guidance. The company also cited continued supply disruption, higher inflation in steel, aluminum and freight costs, lower chassis availability, and ongoing operational challenges in the upfit business.
The company said Marucci Sports contributed about $113 million of net sales for fiscal 2026, down from the $172 million to $180 million range previously embedded in guidance. Following these announcements, the company's shares moved 5.83%, and are now trading at a price of $18.50. For more information, read the company's full 8-K submission here.
