Fox Factory Holding Corp (FOXF) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Fox Factory Holding Corp's. third quarter fiscal 2024 earnings conference call. (Operator Instructions) Please note, this conference is being recorded.

下午好，女士們先生們，感謝你們的支持。歡迎來到福克斯工廠控股公司。 2024 財年第三季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I'd now like to turn the conference over to Toby Merchant, Chief Legal Officer at Fox Factory Holding Corp. Thank you, sir. You may begin.

現在我想將會議轉交給福克斯工廠控股公司首席法務官托比·麥錢特（Toby Merchant）。你可以開始了。

Thank you. Good afternoon, and welcome to Fox Factory's third quarter 2024 earnings conference call. I'm joined today by Mike Dennison, Chief Executive Officer; and Dennis Schemm, Chief Financial Officer and President of the Aftermarket Applications Group.

謝謝。下午好，歡迎參加 Fox Factory 2024 年第三季財報電話會議。今天，執行長 Mike Dennison 也加入了我的行列。財務長兼售後應用程式集團總裁 Dennis Schemm。

First, Mike will provide business updates and then Dennis will review the quarterly results and outlook. Mike will then provide some closing remarks before we open up the call for your questions.

首先，麥克將提供業務更新，然後丹尼斯將審查季度業績和前景。然後，在我們開始詢問您的問題之前，麥克將發表一些結束語。

By now, everyone should have access to the earnings release, which went out earlier this afternoon. If you have not had the chance to review the release, it's available on the Investor Relations portion of our website at investor.ridefox.com.

到目前為止，每個人都應該可以看到今天下午早些時候發布的財報。如果您還沒有機會查看新聞稿，可以在我們網站的投資者關係部分找到新聞稿：investor.ridefox.com。

Please note that throughout this call, we will refer to Fox Factory as Fox or the company.

請注意，在整個通話過程中，我們將 Fox Factory 稱為“Fox”或“公司”。

Before we begin, I would like to remind everyone that the prepared remarks contain forward-looking statements within the meaning of federal securities laws, and management may make additional forward-looking statements in response to your questions.

在開始之前，我想提醒大家，準備好的言論包含聯邦證券法含義內的前瞻性陳述，管理層可能會針對您的問題做出額外的前瞻性陳述。

Such statements involve a number of known and unknown risks, uncertainties, many of which are outside the company's control and can cause future results, performance or achievements to differ materially from the results, performance or achievements expressed or implied by such forward-looking statements.

此類陳述涉及許多已知和未知的風險、不確定性，其中許多風險、不確定性超出了公司的控制範圍，並可能導致未來的結果、業績或成就與此類前瞻性陳述明示或暗示的結果、業績或成就有重大差異。

Important factors and risks that could cause or contribute to such differences are detailed in the company's quarterly reports on Form 10-Q and in the company's latest annual report on Form 10-K, each filed with the Securities and Exchange Commission.

可能導致或促成此類差異的重要因素和風險詳見公司向美國證券交易委員會提交的 10-Q 表格季度報告和 10-K 表格最新年度報告。

Investors should not place undue reliance on the company's forward-looking statements, and except as required by law, the company undertakes no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

投資者不應過度依賴公司的前瞻性陳述，除非法律要求，否則公司不承擔更新任何前瞻性陳述或其他陳述的義務，無論是由於新資訊、未來事件或其他原因。

In addition, where appropriate in today's prepared remarks and within our earnings release, we will refer to certain non-GAAP financial measures to evaluate our business, including adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin, as we believe these are useful metrics that allow investors to better understand and evaluate the company's core operating performance and trends.

此外，在今天準備好的演講中和我們的收益發布中，我們將參考某些非公認會計準則財務指標來評估我們的業務，包括調整後的毛利、調整後的毛利率、調整後的運營費用、調整後的淨利潤、調整後的每股收益稀釋後的股份、調整後的EBITDA 和調整後的EBITDA 利潤率，因為我們相信這些都是有用的指標，可以讓投資者更好地了解和評估公司的核心經營績效和趨勢。

Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are included in today's earnings release, which has also been posted on our website.

這些非公認會計原則財務指標與其最直接可比較的公認會計原則財務指標的調節表包含在今天的收益報告中，該報告也已發佈在我們的網站上。

And with that, it is my pleasure to turn the call over to our CEO, Mike Dennison.

至此，我很高興將電話轉給我們的執行長 Mike Dennison。

Thanks, Toby, and thanks to all of you for joining the call today. Our third quarter results reflected continued sequential improvement as we delivered $359 million of revenue, representing a 3.1% increase from the second quarter and an 8.5% increase compared to the prior year.

謝謝托比，也謝謝大家今天加入電話會議。我們第三季的業績反映了持續的環比改善，我們實現了 3.59 億美元的收入，比第二季度增長 3.1%，比上年增長 8.5%。

This sequential growth was led by our bike business, which delivered a second consecutive quarter of double-digit sequential growth, up 22%, following last quarter's 52% increase. The acquisition of Marucci also provided growth as our team delivered another quarter of solid growth.

這一環比增長是由我們的自行車業務帶動的，繼上季度 52% 的增長之後，該業務連續第二個季度實現兩位數的環比增長，增長 22%。收購 Marucci 也帶來了成長，我們的團隊又實現了一個季度的穩健成長。

While the underlying demand for Fox's innovative and performance-defining products remain strong, our results in the third quarter landed at the lower end of our guidance range, as OEM partners further reduced their forecast for our products during the quarter.

儘管對福克斯創新和性能決定性產品的潛在需求仍然強勁，但我們第三季度的業績落在了指導範圍的下限，因為 OEM 合作夥伴進一步降低了對我們本季產品的預測。

These forecast reductions align with the quarterly results and commentary by many of these companies and are consistent with reductions in discretionary spending and uncertain macroeconomic outlook, high interest rates, the fatigue from inflation and the upcoming elections. I will talk more about this in the outlook section later in the call.

這些預測的減少與許多此類公司的季度業績和評論一致，並與可自由支配支出的減少和不確定的宏觀經濟前景、高利率、通貨膨脹帶來的疲勞和即將到來的選舉相一致。我將在稍後的電話會議展望部分詳細討論這一點。

Additionally, ongoing quality issues and model year changeovers at several of our automotive OEM partners continue to impact chassis mix and availability. Although we continue to evolve our business through diversification and expansion within the aftermarket, over half of our business remains closely tied to our OEM customers.

此外，我們的一些汽車 OEM 合作夥伴持續存在的品質問題和車型年份轉換繼續影響底盤組合和可用性。儘管我們繼續透過售後市場的多元化和擴張來發展我們的業務，但我們一半以上的業務仍然與我們的 OEM 客戶密切相關。

And when they face challenges, whether from constrained demand, quality concerns, misaligned inventories or production slowdowns, those impacts flow through to our business. The good news is that we have seen the lingering issues begin to abate in Q4 as model year '25 vehicles are beginning to ship to our facilities now.

當他們面臨挑戰時，無論是需求受限、品質問題、庫存失調或生產放緩，這些影響都會影響我們的業務。好消息是，隨著 25 年款車輛現在開始運送到我們的工廠，我們看到揮之不去的問題在第四季度開始緩解。

We've responded decisively to the challenges throughout the year by implementing both immediate and longer-term actions to strengthen our business. For example, as we saw demand tighten, we've aggressively managed and reduced controllable costs across our corporate structure, and at our plants by reducing direct and indirect labor.

我們透過實施近期和長期行動來加強我們的業務，果斷地應對了全年的挑戰。例如，當我們看到需求收緊時，我們透過減少直接和間接勞動力，積極管理和降低整個公司結構以及工廠的可控成本。

We have also taken more strategic action by closing a plant in Colorado in our AAG business and making other factory efficiency improvements. However, there is more we must do, and we must do it with the same level of urgency and commitment we have in building our world-class brands.

我們也採取了更具策略性的行動，關閉了 AAG 業務中科羅拉多州的一家工廠，並提高了其他工廠的效率。然而，我們還有更多的事情要做，而且我們必須以與建立世界一流品牌同樣的緊迫感和承諾來做到這一點。

During the third quarter, we began developing plans across a series of key priorities, reflecting the need to adjust our business structure to align with our view of our OEM's expected production levels for the near term. In a nutshell, we need to deliver our historical EBITDA margins, regardless of the volume commitments for our OEMs.

第三季度，我們開始製定一系列關鍵優先事項的計劃，反映出需要調整我們的業務結構，以符合我們對 OEM 近期預期生產水準的看法。簡而言之，無論 OEM 廠商的銷售承諾如何，我們都需要實現歷史 EBITDA 利潤率。

We hit the ground running in Q3, driving initial actions that while they negatively impacted the profitability of the quarter, they are designed to enable margin growth in Q4 and beyond.

我們在第三季開始運作，推動了初步行動，雖然這些行動對本季的獲利能力產生了負面影響，但旨在實現第四季度及以後的利潤成長。

The focus of our work is centered around the following 4 initiatives: simplify and consolidate our footprint, reduce and eliminate nonperforming products in our portfolio, reduce inventory and finally, reduce costs. Beyond the four initiatives, I have challenged our entire team to identify opportunities to strategically optimize our cost structure across all of our segments.

我們的工作重點圍繞著以下四項措施：簡化和鞏固我們的足跡、減少和消除我們產品組合中的不良產品、減少庫存，最後降低成本。除了這四項措施之外，我還要求我們整個團隊尋找機會，策略性地優化我們所有部門的成本結構。

While we remain a company, oriented toward generating long-term growth, we want to ensure that our business is optimally positioned to operate efficiently in a number of demand environments, so that we can protect margins and drive significant and consistent free cash flow.

雖然我們仍然是一家以實現長期成長為導向的公司，但我們希望確保我們的業務處於最佳位置，能夠在多種需求環境中高效運營，以便我們能夠保護利潤並推動大量且持續的自由現金流。

An important step of this process was a change management, with Dennis taking over AAG. In his first quarter, he has identified opportunities to reduce inventory and has taken action to drive significant improvement within the quarter.

這個過程的一個重要步驟是變革管理，丹尼斯接手了 AAG。在第一季度，他發現了減少庫存的機會，並採取行動推動本季的重大改進。

We are developing similarly impactful strategies across our other businesses that we expect to implement this year. We are also continuing to focus on creating diversification across our segments, products, markets and geographies to create a more resilient organization that can be nimble in response to demand shifts in the industry cyclicality.

我們正在其他業務中製定類似的有影響力的策略，預計今年將實施。我們也持續致力於在我們的細分市場、產品、市場和地理之間實現多元化，以創建一個更具彈性的組織，能夠靈活地應對行業週期性的需求變化。

Recent growth initiatives, like our move into the entry premium bike category, the Marucci acquisition and MLB partnership and our accelerated international growth have significantly expanded our addressable market, while improving multiple price points for consumers to access our brands.

最近的成長舉措，例如我們進軍入門級高端自行車類別、收購Marucci 和MLB 合作夥伴關係以及我們加速的國際成長，顯著擴大了我們的目標市場，同時提高了消費者接觸我們品牌的多個價格點。

Turning now to a discussion of our segment performance. In the Powered Vehicle Group, net sales were $109 million, down from $123 million in the prior year quarter, which reflects a reduction in demand forecast from our OEM partners in response to broader market conditions and a deferral of larger ticket discretionary spending by consumers, as mentioned previously.

現在討論我們的部門業績。在動力車輛集團中，淨銷售額為1.09 億美元，低於去年同期的1.23 億美元，這反映出我們的OEM 合作夥伴為應對更廣泛的市場狀況而減少了需求預測，以及消費者推遲了較大的可自由支配支出，如前所述。

This hesitancy, combined with ongoing OEM quality issues that are continuing to delay production at the OEMs resulted in lower volumes than we anticipated. This has impacted our facility utilization rates and consequently, our margin performance in the quarter.

這種猶豫，再加上持續存在的 OEM 品質問題，導致 OEM 的生產持續延遲，導致產量低於我們的預期。這影響了我們的設施利用率，進而影響了我們本季的利潤率表現。

In the automotive sector, while our premium truck category has historically demonstrated more resilience to market pressures, we're now seeing some moderation in demand within this category as well. The broader OEM automotive space continues to face excess dealer inventory, and although we're seeing gradual improvement as we move through the year, inconsistent general consumer demand continues to weigh on the pace of destocking.

在汽車行業，雖然我們的高端卡車類別歷來表現出對市場壓力的更強彈性，但我們現在看到該類別的需求也有所放緩。更廣泛的原始設備製造商汽車領域繼續面臨經銷商庫存過剩的問題，儘管我們看到今年的情況逐漸改善，但不一致的整體消費者需求繼續影響去庫存的步伐。

The level of de-commit from our automotive OEM customers in the quarter was significant. For the top three automotive customers, this translated to a sequential reduction by customer of 9.2%, 37.1% and a whopping 87% un-forecasted reduction from Q2 to Q3. Overall, this equated to a 19.5% drop in this overall product sector within the quarter. This was partially offset by our PVG aftermarket business, which improved 28.3% sequentially.

本季我們的汽車 OEM 客戶的取消承諾程度很高。對於三大汽車客戶來說，這意味著從第二季到第三季度，客戶數量較上季減少了 9.2%、37.1%，未預測的減少幅度高達 87%。總體而言，這相當於本季整個產品領域下降了 19.5%。這被我們的 PVG 售後市場業務部分抵消，該業務環比增長 28.3%。

Similarly, the powersports market faces ongoing challenges, with our OEM partners deliberately managing production well below retail demand to address dealer inventory levels consistent with the prior quarter. The forecast reductions we have previously taken in this segment appear to be within line of current expectations.

同樣，動力運動市場面臨持續的挑戰，我們的 OEM 合作夥伴刻意將產量控制在遠低於零售需求的水平，以解決與上一季一致的經銷商庫存水平。我們先前對該領域的預測削減似乎符合當前的預期。

Even though the customer demand outlook within PVG continues to be a headwind, the Fox brand remains the standard and continues to be sought by consumers. In fact, in the PVG aftermarket, we achieved the highest level of new bookings in both domestic and international channels in over 6 quarters, which highlight that customers will fix their current vehicles if they can't justify the expense of a new one.

儘管 PVG 內的客戶需求前景仍然不利，但 Fox 品牌仍然是標準，並繼續受到消費者的追捧。事實上，在 PVG 售後市場，我們在國內和國際通路上實現了 6 個多季度以來的最高水平的新預訂，這突顯出，如果客戶無法證明購買新車的費用合理，他們將修理現有車輛。

We also continue to win across new customers, new partnerships and as always, in racing. In Q3, we announced a return to our motorcycling routes by partnering with Buell USA. under our new Super Cruiser bikes launching in 2025.

我們也一如既往地在賽車領域贏得新客戶、新夥伴的青睞。第三季度，我們宣布與 Buell USA 合作恢復摩托車路線。我們將於 2025 年推出新款 Super Cruiser 自行車。

In side by side, we kicked off new products and announced a partnership with CFMOTO on their ZFORCE line as well as new wins with BRP on the Maverick R 4-seater and a new Outlander UTV.

同時，我們推出了新產品，並宣布與 CFMOTO 在 ZFORCE 系列上建立合作夥伴關係，並與 BRP 在 Maverick R 4 座和新款 Outlander UTV 上取得新勝利。

With Ford, we were not only awarded the new program on the JMC Ranger Extreme, but also unveiled the new Raptor T1 Dakar race vehicle at the annual Goodwood event. And finally, in racing, there are frankly too many wins to list, but overall, we were at the top of the podium in 6 different races across both UTV and trucks.

與福特一起，我們不僅獲得了 JMC Ranger Extreme 的新項目，還在年度古德伍德賽事中推出了新款 Raptor T1 達卡賽車。最後，在賽車方面，坦白說，有太多的勝利無法列出，但總的來說，我們在 UTV 和卡車的 6 場不同比賽中都登上了領獎台。

Moving to AAG. Net sales were $100 million compared to $136 million in the prior year quarter. Alongside the AAG leadership transition, we've completed a comprehensive assessment of the business that has led to a clear phased approach to drive improvement. Phase 1 included a deep dive into team, customers and the operations, identifying both challenges and opportunities, including the critical need to optimize our inventory position and strengthen our dealer relationships. And we closed our facility in Colorado, transitioned business to other facilities to further improve productivity.

搬到AAG。淨銷售額為 1 億美元，去年同期為 1.36 億美元。在 AAG 領導層換屆的同時，我們也完成了對業務的全面評估，從而製定了明確的分階段方法來推動改進。第一階段包括深入了解團隊、客戶和營運情況，確定挑戰和機遇，包括優化庫存狀況和加強經銷商關係的迫切需求。我們關閉了科羅拉多州的工廠，將業務轉移到其他工廠，以進一步提高生產力。

Phase 2, which we're executing now, has centered on taking decisive action. While inventory optimization was always part of our plan for the second half of '24, it became clear, following discussions with key OEMs and dealer partners, that accelerating this activity in September would best position the business for 2025, with new late-model trucks that meet the latest consumer preferences.

我們現在正在執行的第二階段的重點是採取果斷行動。雖然庫存優化始終是我們2024 年下半年計畫的一部分，但在與主要OEM 廠商和經銷商合作夥伴討論後，很明顯，在9 月加速這項活動將透過新型新型卡車為2025 年的業務做好最佳定位滿足最新的消費者喜好。

As such, we provided incremental support to our dealers through targeted promotional programs to help move inventory in an efficient manner. The acceleration of our plan impacted third quarter margins to a greater degree than we contemplated in our prior guidance.

因此，我們透過有針對性的促銷計劃向經銷商提供增量支持，以幫助有效地轉移庫存。我們計劃的加速對第三季利潤率的影響比我們先前的指導中預期的要大。

However, completing this before year-end has removed a significant constraint to future growth, and has positioned us to capture the full benefit of the recovery when the market rebounds. Thus, we expect Q3 will be the low watermark for AAG margins before inflecting upward in the fourth quarter, which we expect to continue through 2025.

然而，在年底前完成這項工作消除了對未來成長的重大限制，並使我們能夠在市場反彈時充分享受復甦的好處。因此，我們預計第三季將是 AAG 利潤率的低水位，然後在第四季度出現上升，我們預計這種情況將持續到 2025 年。

Looking ahead, Phase 3 of our strategic plan focuses on building and diversifying AAG through multiple initiatives. This includes furthering new relationships with existing and potential OEMs and other partners, expanding our products to new platforms, implementing a common marketplace for our upfit and aftermarket components and increasing overall brand accessibility.

展望未來，我們戰略計劃的第三階段重點是透過多項措施建立 AAG 並使其多元化。這包括進一步與現有和潛在的原始設備製造商及其他合作夥伴建立新的關係，將我們的產品擴展到新平台，為我們的改裝和售後組件建立一個共同市場，並提高整體品牌的可及性。

Importantly, we're renewing our focus on our performance routes, while building the infrastructure to support significant long-term margin improvement. The enthusiasm among our teams is building as we execute these initiatives.

重要的是，我們正在重新關注我們的業績路線，同時建立基礎設施以支持長期利潤率的顯著提高。當我們執行這些舉措時，我們團隊的熱情正在增強。

In Q3, our product development teams launched race wheels from Method, designed to better support 4- to 6-inch lifts with 20- and 22-inch wheels for the light truck market. RideTech launched a front-end rear suspension system that modernizes the popular Ford Fox Body Mustang and Sport Truck launched the GM 1500 long travel suspension, with Baja kits by the Brenthel Brothers. These aftermarket launches have been well received and continue to fuel our growth in the sector.

第三季度，我們的產品開發團隊推出了 Method 的競賽車輪，旨在更好地支援輕型卡車市場的 20 吋和 22 吋車輪的 4 至 6 吋升降機。RideTech 推出了前端後懸吊系統，使流行的福特福克斯車身野馬 (Ford Fox Body Mustang) 現代化，運動卡車 (Sport Truck) 推出了 GM 1500 長行程懸架，並配有 Brenthel Brothers 的 Baja 套件。這些售後市場的推出受到了好評，並繼續推動我們在該行業的成長。

In terms of the current environment, our outfitting business continues to face near-term chassis mix and availability challenges, which we expect to persist through at least year-end as dealers work through existing inventory and high floor plan financing. However, the strength of our aftermarket components business is providing some buffer, with continued growth in wheels and lift kits, demonstrating both the resilience of our portfolio and the success of our diversification strategy.

就當前環境而言，我們的裝備業務繼續面臨近期底盤組合和可用性挑戰，我們預計這種挑戰至少會持續到年底，因為經銷商正在努力解決現有庫存和高平面圖融資問題。然而，我們的售後零件業務的實力提供了一些緩衝，車輪和舉升套件的持續成長，證明了我們產品組合的彈性和多元化策略的成功。

With our inventory well positioned, strengthen the operational foundation and clear strategy to maximize the power of our brand portfolio, we believe we're taking the right steps to drive sustainable growth and restore margins.

憑藉我們的庫存定位、加強營運基礎和明確的策略來最大限度地發揮我們品牌組合的力量，我們相信我們正在採取正確的步驟來推動永續成長並恢復利潤。

In SSG, net sales were $150 million compared to $72 million last year, primarily reflecting a $50 million increase from inclusion of Marucci and continued growth in the bike business.

SSG 的淨銷售額為 1.5 億美元，而去年為 7,200 萬美元，主要反映了 Marucci 的納入以及自行車業務的持續增長，增加了 5,000 萬美元。

Our bike business delivered a $28 million increase in sales year-over-year and built on last quarter's 52% sequential increase with another 22% sequential increase in Q3. Notably, we achieved this improvement while maintaining flat operating expenses year-to-date, demonstrating the significant operating leverage potential in our business model.

我們的自行車業務銷售額年增 2,800 萬美元，上季較上季成長 52%，第三季較上季成長 22%。值得注意的是，我們在實現這項改進的同時保持了年初至今的營運支出持平，這證明了我們業務模式中巨大的營運槓桿潛力。

While our bike business grew sequentially and year-over-year, which certainly supports a return to a more balanced outlook than we have seen in the last 18 months. We are not ready to call the inventory destocking complete. As I have said previously, not every channel or customer will exit at the same time or rate, and that lumpiness will persist into next year.

雖然我們的自行車業務連續成長且逐年成長，這無疑支持我們恢復到比過去 18 個月更平衡的前景。我們還沒準備好稱庫存去庫存已完成。正如我之前所說，並非所有管道或客戶都會同時或以相同的速度退出，而這種波動性將持續到明年。

Our strategic expansion into the entry premium bike segment and consistent strength in the top 10 OEMs has buffered us from some of the softness in the smaller OEM customers. The entry premium category represents a transformative opportunity for us to challenge the status quo, further diversifying our business and effectively doubling our total addressable market, while maintaining our brand's premium positioning.

我們向入門級高端自行車市場的策略擴張以及在十大 OEM 廠商中的持續實力使我們免受小型 OEM 客戶疲軟的影響。入門高端類別為我們挑戰現狀提供了一個變革性的機會，進一步實現業務多元化，有效地將我們的總目標市場翻倍，同時保持我們品牌的高端定位。

The early response from our OEM customers has been overwhelmingly positive, further validating the strategy to broaden market participation, while staying true to our performance-defining heritage. We're also seeing similar success in the e-bike category, which represents another important avenue for market expansion.

我們的 OEM 客戶的早期反應非常積極，進一步驗證了擴大市場參與的策略，同時保持了我們定義績效的傳統。我們在電動自行車類別中也看到了類似的成功，這是市場擴張的另一個重要途徑。

From a regional perspective, the European market maintains its relative strength due to better inventory positioning, while the US market continues to progress towards stabilization.

從區域來看，歐洲市場由於庫存定位較好而保持相對強勢，而美國市場則持續趨於穩定。

In the third quarter, we also launched our new Neo Live Valve wireless solutions to overwhelming positive reviews and early success. Another example of our commitment to innovating at the premium high-performance end of the sport.

在第三季度，我們還推出了新的 Neo Live Valve 無線解決方案，獲得了壓倒性的正面評價並取得了早期成功。這是我們致力於在高端高性能運動領域進行創新的另一個例子。

Turning to Marucci. Our brands continue to demonstrate relative strength and market share expansion. While we are seeing particular excitement around Marucci with the world series and stars, such as Freddie Freeman, utilizing our bat to become the MVP and our new Marucci CATX2 bat launch, we are focused behind the scenes preparing with Major League Baseball to take the field as official bat partners beginning 2025.

轉向馬魯奇。我們的品牌持續展現相對實力和市佔率的擴大。雖然我們看到Marucci 與世界大賽和明星（例如弗雷迪·弗里曼）一起特別興奮，利用我們的球棒成為MVP 以及我們新的Marucci CATX2 球棒的推出，但我們在幕後專注於與美國職棒大聯盟一起準備進入球場從 2025 年開始成為蝙蝠官方合作夥伴。

The amount of work to ensure that 2025 is the first year of a multiyear success story is keeping us busy 24/7. In addition, we believe that recent investments in Hitter's House softball as well as new product lines from both Marucci and Victus set us up very well for 2025. Some of these upcoming product launches will likely weigh on near-term margins as we build the capacity and capability to deliver home runs.

確保 2025 年成為多年成功故事的第一年的大量工作讓我們 24/7 忙碌。此外，我們相信最近對 Hitter's House 壘球的投資以及 Marucci 和 Victus 的新產品線為我們 2025 年的發展奠定了良好的基礎。隨著我們增強交付本壘打的能力和能力，即將推出的一些產品可能會影響短期利潤。

With all of this excitement around Marucci business, it is important to also acknowledge that we are seeing some signs of softness from the consumer as they balance their budgets for discretionary items against their immediate needs during this uncertain period, which brings me with some comments on our outlook.

儘管Marucci 業務如此令人興奮，但重要的是要承認，我們看到了消費者的一些疲軟跡象，因為他們在這個不確定的時期平衡了非必需品的預算和他們的即時需求，這給我帶來了一些評論我們的展望。

Based on the recent performance as well as latest forecast for our OEM partners across all segments for Q4, we are providing a tempered view of the upcoming quarter that Dennis will review in more detail. We think this is only prudent based on the public and private feedback we have received from these OEM customers and their ongoing challenges.

根據最近的業績以及我們對第四季度所有細分市場的 OEM 合作夥伴的最新預測，我們對即將到來的季度提供了一個溫和的看法，丹尼斯將對此進行更詳細的審查。根據我們從這些 OEM 客戶收到的公開和私人回饋以及他們持續面臨的挑戰，我們認為這只是謹慎的做法。

These dynamics are also influencing our early thoughts around 2025. While we're poised to capture growth in our aftermarket applications group, Marucci and bike, as well as new customer wins in PVG, our base case expectation is for the industry retail environment to remain challenging.

這些動態也影響著我們對 2025 年左右的早期想法。雖然我們準備好在售後應用部門、Marucci 和自行車領域實現成長，並在 PVG 中贏得新客戶，但我們的基本預期是產業零售環境仍然充滿挑戰。

However, as I highlighted earlier and as Dennis will discuss in more detail, we will be driving our 4 improvement initiatives in taking decisive actions to recapture margins and drive improved cash flow generation, regardless of the macro.

然而，正如我之前強調的以及丹尼斯將更詳細討論的那樣，無論宏觀形勢如何，我們都將推動我們的 4 項改進舉措，採取果斷行動，重新奪回利潤並推動改善現金流的產生。

If we can recapture our best-in-class EBITDA profile, even with diminished near-term top line growth, we will set ourselves up for exponential success as consumer demand refills the pipeline for robust growth.

如果我們能夠重新獲得一流的 EBITDA 狀況，即使近期營收成長放緩，隨著消費者需求重新填補強勁成長的管道，我們也將為取得指數級成功做好準備。

As we experienced this year, the pace and the magnitude of the overall recovery will largely depend on consumer sentiment around broader macroeconomic conditions and the strength and reliability of our OEM partners. Nonetheless, we are focused on what we can control, which is continuing to invest in innovation to create new products that drive traction with new and existing customers, while aggressively managing costs.

正如我們今年所經歷的那樣，整體復甦的速度和幅度將在很大程度上取決於消費者對更廣泛的宏觀經濟狀況的信心以及我們的 OEM 合作夥伴的實力和可靠性。儘管如此，我們仍專注於我們可以控制的事情，即繼續投資創新，創造新產品，吸引新舊客戶，同時積極管理成本。

And with that, I'll turn the call over to Dennis.

然後，我會將電話轉給丹尼斯。

Thanks, Mike, and good afternoon, everyone. I'll begin by discussing our third quarter financial results and then move to our balance sheet and cash flows, capital allocation strategy, and then wrap up with a review of our guidance.

謝謝麥克，大家下午好。我將首先討論我們第三季的財務業績，然後討論我們的資產負債表和現金流量、資本配置策略，最後回顧我們的指導。

Q3 results. Total consolidated net sales in the third quarter of fiscal 2024 were $359.1 million, an increase of 8.5% versus sales of $331.1 million in the third quarter of fiscal 2023, reflecting the impact of the Marucci acquisition and strength in the bike business.

第三季結果。2024 財年第三季的合併淨銷售額總額為 3.591 億美元，比 2023 財年第三季的銷售額 3.311 億美元成長 8.5%，反映了收購 Marucci 的影響以及自行車業務的實力。

Our gross margin and adjusted gross margin were 29.9% in the third quarter of fiscal 2024 compared to 32.4% and 33.2%, respectively, in the same quarter last year. The decrease was driven by shifts in our product line mix, accelerated inventory optimization in AAG and reduced operating leverage on lower volumes across our segments.

2024 財年第三季度，我們的毛利率和調整後毛利率為 29.9%，去年同期分別為 32.4% 和 33.2%。這一下降是由於我們的產品線組合的變化、AAG 的庫存優化加速以及各部門銷售下降導致的營運槓桿降低。

Total operating expenses were $88.7 million or 24.7% of net sales in the third quarter of fiscal 2024 compared to $65.9 million or 19.9% of net sales in the same quarter last year. The increase in operating expenses was attributed primarily to the inclusion of $19.7 million of operating expenses from our Marucci acquisition. Adjusted operating expenses as a percentage of sales increased to 21.1% in the third quarter of 2024 compared to 17.6% in the same period last year.

2024 財年第三季的總營運費用為 8,870 萬美元，佔淨銷售額的 24.7%，而去年同期為 6,590 萬美元，佔淨銷售額的 19.9%。營運費用的增加主要歸因於收購 Marucci 帶來的 1,970 萬美元營運費用。2024 年第三季調整後營運費用佔銷售額的百分比增至 21.1%，去年同期為 17.6%。

The company's tax expense was $0.3 million in the third quarter of fiscal 2024 compared to a tax expense of $3.5 million in the third quarter of fiscal 2023. The decrease in income tax expense was primarily due to a decrease in pretax income.

該公司 2024 財年第三季的稅費為 30 萬美元，而 2023 財年第三季的稅費為 350 萬美元。所得稅費用減少主要是因為稅前收入減少。

Net income in the third quarter of fiscal 2024 was $4.8 million or $0.11 per diluted share compared to net income of $35.3 million or $0.83 per diluted share in the same quarter last year. And adjusted net income was $14.8 million or $0.35 per diluted share compared to $44.8 million or $1.05 per diluted share in the third quarter last year.

2024 財年第三季的淨利為 480 萬美元，即稀釋後每股收益 0.11 美元，而去年同期淨利為 3,530 萬美元，即稀釋後每股收益 0.83 美元。調整後淨利潤為 1,480 萬美元，即稀釋後每股收益 0.35 美元，而去年第三季為 4,480 萬美元，即稀釋後每股收益 1.05 美元。

Adjusted EBITDA was $42 million for the third quarter of fiscal 2024 compared to $63.7 million in the same quarter last year. Adjusted EBITDA was $42 million for the third quarter of fiscal 2024 compared to $63.7 million in the same quarter last year. Adjusted EBITDA margin was 11.7% in the third quarter of fiscal 2024 compared to 19.2% in the third quarter of fiscal 2023.

2024 財年第三季調整後 EBITDA 為 4,200 萬美元，而去年同期為 6,370 萬美元。2024 財年第三季調整後 EBITDA 為 4,200 萬美元，而去年同期為 6,370 萬美元。2024 財年第三季調整後 EBITDA 利潤率為 11.7%，而 2023 財年第三季為 19.2%。

The decrease in our adjusted EBITDA margin continues to reflect temporary and unique challenges that our customers across various industries are facing, which is impacting volumes and fixed cost absorption at our facilities. Other drivers of our adjusted EBITDA margin performance include shifts in our portfolio mix and the accelerated inventory optimization in AAG, partially offset by cost control measures and continuous improvement initiatives.

我們調整後的 EBITDA 利潤率的下降繼續反映了我們各行業的客戶所面臨的暫時和獨特的挑戰，這影響了我們工廠的產量和固定成本吸收。調整後的 EBITDA 利潤率表現的其他驅動因素包括投資組合的變化以及 AAG 的加速庫存優化，但部分被成本控制措施和持續改進舉措所抵消。

Moving to the balance sheet and cash flows. In the 9 months ended September 27, 2024, inventory rose by $29.5 million or 7.9% compared to year-end 2023, driven by planned inventory build. However, I'd like to stress that this is an area that we are very focused on at the moment, given how the consumer landscape has evolved.

轉向資產負債表和現金流量。截至 2024 年 9 月 27 日的 9 個月中，在計畫庫存建設的推動下，庫存較 2023 年底增加了 2,950 萬美元，即 7.9%。然而，我想強調的是，考慮到消費者格局的演變，這是我們目前非常關注的領域。

We are mindful of the possibility that this challenging macro backdrop extends into 2025, and we will be carefully managing working capital to ensure that we decrease our balance sheet leverage as fast as we possibly can.

我們注意到這種充滿挑戰的宏觀背景有可能延續到 2025 年，我們將謹慎管理營運資本，以確保盡快降低資產負債表槓桿。

As we strive to create greater predictability, we executed 3 interest rate swaps during the quarter to fix our interest expense for $400 million of our debt. This effectively reduced interest expense by $102,000 in Q3, and it is expected to reduce interest expense in Q4 by $1.3 million.

為了提高可預測性，我們在本季執行了 3 次利率掉期，以固定 4 億美元債務的利息支出。這有效地減少了第三季利息支出 102,000 美元，預計第四季度利息支出將減少 130 萬美元。

Our revolver balance as of September 27, 2024, was $210 million versus $370 million as of December 29, 2023. Our term loan balance was approximately $558 million, net of loan fees. We will continue to prioritize R&D, but to be very clear, debt paydown is the priority for capital allocation. In fact, since we closed the quarter, we have paid down an additional $25 million in debt.

截至 2024 年 9 月 27 日，我們的左輪手槍餘額為 2.1 億美元，而截至 2023 年 12 月 29 日，我們的左輪手槍餘額為 3.7 億美元。扣除貸款費用後，我們的定期貸款餘額約為 5.58 億美元。我們將繼續優先考慮研發，但要非常明確的是，償還債務是資本配置的優先事項。事實上，自本季結束以來，我們已經額外償還了 2,500 萬美元的債務。

Now moving to guidance. We now expect full year sales to be in the range of $1.341 billion to $1.381 billion and adjusted earnings per diluted share in the range of $1.27 and to $1.42 and a full year adjusted tax rate of 15% to 18%. This implies fourth quarter of 2024 sales in the range of $300 million to $340 million and adjusted earnings per diluted share of $0.25 to $0.40.

現在轉向指導。我們目前預計全年銷售額將在 13.41 億美元至 13.81 億美元之間，調整後每股攤薄收益將在 1.27 美元至 1.42 美元之間，全年調整後稅率為 15% 至 18%。這意味著 2024 年第四季的銷售額將在 3 億美元至 3.4 億美元之間，調整後每股攤薄收益將在 0.25 美元至 0.40 美元之間。

Building upon Mike's comments regarding our near-term plan and base expectations for 2025, in Q4 2024, more specifically, we expect both bike and Marucci to be relatively flat with the prior year. We expect both AAG and PVG to be relatively flat sequentially, with some upside opportunity, should OE dealer incentives result in helping dealers clear lots.

根據 Mike 對我們的近期計劃和 2025 年基本預期的評論，更具體地說，在 2024 年第四季度，我們預計自行車和 Marucci 的銷量將與上一年相對持平。我們預計，如果原廠經銷商激勵措施能夠幫助經銷商清理批次，AAG 和 PVG 的銷售將連續相對持平，並存在一些上行機會。

We will provide more detail on our assumptions for 2025 during our Q4 earnings call, but preliminary insight is as follows: we are assuming demand remains under pressure in 2025, and that from an OE perspective, 2025 will look a lot like 2024 as it relates to PVG and bike as measured in absolute dollars.

我們將在第四季度財報電話會議上提供有關 2025 年假設的更多詳細信息，但初步見解如下：我們假設 2025 年需求仍面臨壓力，從 OE 角度來看，2025 年將與 2024 年非常相似以絕對美元衡量的PVG 和自行車。

In AAG, we expect to move past the specific OE concerns, such as quality and model year changeovers in 2025. We do expect to see meaningful growth in our AAG and Marucci segments, and we expect to see the benefit from our cost reduction efforts.

在 AAG 中，我們預計將在 2025 年克服特定的 OE 問題，例如品質和車型年份轉換。我們確實預計 AAG 和 Marucci 部門將出現有意義的成長，我們預計將從降低成本的努力中獲益。

As a result of the revised sales expectations, we are taking action to improve our margins and cash flow. We have already identified strategic cost measures across all 3 of our segments that we will take to improve gross margin, and we are taking direct action on OpEx to ensure we are optimized.

由於銷售預期的修訂，我們正在採取行動提高利潤和現金流。我們已經確定了所有三個部門的策略成本措施，我們將採取這些措施來提高毛利率，並且我們正在對營運支出採取直接行動，以確保我們得到最佳化。

We are working on a plan to capture more than $25 million in cost savings. These cost saving actions involve simplification and consolidation of our footprint, reduction in elimination of nonperforming products in our portfolio, reduction of inventory and reduction of costs.

我們正在製定一項計劃，以節省超過 2500 萬美元的成本。這些成本節約行動包括簡化和整合我們的足跡、減少產品組合中不良產品的淘汰、減少庫存和降低成本。

We expect to provide you with an update on our progress, including the cadence of these measures during our Q4 call. It is imperative that we keep our cost structure aligned with the demand environment. And given the uncertainty of the consumer, for the next 12 months, we must immediately exert control where we can.

我們希望向您提供有關我們進展的最新信息，包括我們在第四季度電話會議期間採取這些措施的節奏。我們必須保持成本結構與需求環境一致。考慮到消費者的不確定性，在接下來的 12 個月裡，我們必須立即盡可能地進行控制。

In the meantime, we remain focused on our long-term growth strategy, and strategically positioning ourselves to capitalize on market opportunities as our OEM partners return to growth.

同時，我們仍然專注於我們的長期成長策略，並在我們的 OEM 合作夥伴恢復成長時對自己進行策略定位，以利用市場機會。

In closing, while near-term market conditions remain challenging, we're acting swiftly to strengthen our business and position Fox for long-term success. The strategic investments we've made in our operational foundation and unwavering commitment to innovation, combined with the cost reduction actions we've taken to date and our imminent plans to further enhance margins through a more comprehensive program to ensure we're well positioned to drive growth and profitability in volatile demand environments.

最後，雖然近期市場狀況仍然充滿挑戰，但我們正在迅速採取行動，加強我們的業務，並使福克斯取得長期成功。我們在營運基礎上進行的戰略投資和對創新堅定不移的承諾，加上我們迄今為止採取的成本削減行動以及我們即將通過更全面的計劃進一步提高利潤率的計劃，以確保我們處於有利地位在不穩定的需求環境中推動成長和獲利。

Meanwhile, our diversified business model with industry-leading brands and ability to serve customers across multiple price points provide important strength and flexibility in navigating the current environment. With these building blocks in place, we believe Fox is well positioned to accelerate growth and deliver enhanced value to our shareholders.

同時，我們擁有行業領先品牌的多元化業務模式以及為多個價位的客戶提供服務的能力，為應對當前環境提供了重要的優勢和靈活性。有了這些基礎設施，我們相信福斯已經做好了加速成長並為股東創造更高價值的準備。

And with that, I'll turn the call over to the operator.

然後，我會將電話轉給接線生。

(Operator Instructions)

（操作員說明）

Larry Solow, CJS Securities.

拉里·索洛，CJS 證券。

Great. I guess first question, Mike, from a high level, it sounds like the main obstacles continue to be demand and quality issues. But it feels like maybe demand is the greater issue that maybe has more longevity going into '25 even if you resolve some of these quality issues. Is that kind of a good way to summarize it in a broad brush?

偉大的。我想第一個問題，麥克，從高水準來看，聽起來主要障礙仍然是需求和品質問題。但感覺也許需求是一個更大的問題，即使你解決了其中一些品質問題，它的壽命也可能更長到 25 年。這是籠統概括的好方法嗎？

Yes. I mean, to be clear, Larry, there are quality issues that are causing the supply issues are at the automotive OEMs, not quality issues within Fox. I just want to be clear on that.

是的。我的意思是，拉里，要明確的是，導致供應問題的是汽車原始設備製造商的品質問題，而不是福克斯內部的品質問題。我只是想澄清這一點。

But yes. Yes, it does feel like the quality issues are abating. We're starting to see model year '25 come in, in Q4. So we're seeing positive things that they've kind of got past a lot of those challenges they've faced us for the last 9-plus months even in the last year, that really comes down to demand. Can we get consumers to go to lots to buy vehicles. And if that happens, we'll see a nice bounce back, but we have to wait and see if that materializes.

但是是的。是的，確實感覺品質問題正在減少。我們將在第四季開始看到 25 年款車型的上市。因此，我們看到了一些積極的事情，他們已經克服了過去 9 個多月甚至去年所面臨的許多挑戰，這實際上取決於需求。我們能不能讓消費者去很多地方買車？如果發生這種情況，我們將看到良好的反彈，但我們必須等待，看看這是否會實現。

Got you. And then just on the bike segment, I appreciate all the outlook, preliminary stuff. It's really helpful. Just on the 2025 initial bike outlook. I guess on Q4, too, it looks like you're building in a pretty good sequential decline in Q4, which I know is usually seasonally slower, but it sounds like pretty flat next year. So still under kind of historical -- well in the historical levels or maybe below still actual end market demand in bit next year. Is that fair to say?

明白你了。然後就自行車部分而言，我很欣賞所有的前景和初步的東西。這真的很有幫助。關於 2025 年自行車的初步展望。我想在第四季度，看起來第四季度的連續下降也相當不錯，我知道這通常會季節性放緩，但明年聽起來相當平穩。因此，仍然低於歷史水平——遠低於歷史水平，或者明年可能仍低於實際終端市場需求。這麼說公平嗎？

Yes, here's how we look at it. In Q3, we had a good quarter, as you know, 22% up sequentially, which was nice to see on the top of 52% up the prior quarter. So Q3 was good.

是的，我們是這樣看的。如您所知，第三季我們的季度表現不錯，比上一季增長 52%，環比增長 22%，這真是太好了。所以第三季很好。

But Q3 was a little softer than we expected it to be. So that gave us some view of Q4, they said, Okay, we're going to have seasonality, which you mentioned. And with that seasonality, we think we're going to have a little softness as well. So I think we'll be up year-on-year in Q4. And so that's good. And in Q1, our first year Q1 is up year-on-year as well. So that's good.

但第三季的情況比我們預期的要軟。這讓我們對第四季度有了一些看法，他們說，好吧，我們將有季節性，正如你所提到的。由於這種季節性，我們認為我們也會有一點疲軟。所以我認為第四季我們的業績將會比去年同期成長。所以這很好。在第一季度，我們的第一年第一季也較去年同期成長。所以這樣很好。

But I think we're really being tempered in thinking that all of the OEMs have come out of the problems, the inventory issues already or in Q4 to really give us relief in 2025. So we're being pretty conservative in that estimate, so we see what really happens in that business in the early part of next year.

但我認為，我們確實在考慮所有 OEM 廠商已經或在第四季度已經擺脫了庫存問題，從而在 2025 年真正讓我們鬆了一口氣。因此，我們的估計相當保守，所以我們會在明年初看看該業務的實際情況。

Anna Glaessgen, B. Riley.

安娜·格拉斯根，B.萊利。

I guess I'd like to start on continuing on Larry's question on SSG. Looking at the adjusted EBITDA margin compared to last year, I would have expected a little bit more of an uplift considering the year-over-year sales increase. Could you maybe dig into a little bit more of what's going on in SSG margin in the quarter?

我想我想先繼續討論 Larry 關於 SSG 的問題。與去年相比，調整後的 EBITDA 利潤率，考慮到年比銷售額的成長，我預計會有更多的提升。您能否深入了解本季同店銷售利潤率的情況？

Yes. So great question, Anna. And so what we saw happening was ahead on the Marucci side of things. So as they get ready for the MLB launch next year, they're spending ahead there as well as spending ahead for softball-related launches as well. And so that put some pressure on the margin side in SSG.

是的。這是一個很好的問題，安娜。因此，我們看到 Marucci 方面發生的事情是領先的。因此，當他們為明年的美國職棒大聯盟 (MLB) 推出做好準備時，他們不僅會提前支出，還會提前支出壘球相關的推出。這給 SSG 的利潤率帶來了一些壓力。

Got it. And on that Marucci piece, I think based on Kody's disclosures, they grew about 2% in the quarter, and you're expecting, I think, roughly flattish in 4Q. I believe heading into the year, we expected double-digit growth from that brand. Can you talk a little bit more about is that the consumer pressure that you'd referenced just expectations around Marucci versus coming into the year?

知道了。關於 Marucci 的文章，我認為根據 Kody 的披露，他們在本季度增長了約 2%，我認為你預計第四季度將大致持平。我相信進入今年，我們預計該品牌將實現兩位數的成長。能多談談你提到的對 Marucci 的預期與今年的消費者壓力嗎？

Yes. So Marucci is doing a great job and what they did in Q3 was deliver on what they committed to do, which is another, as you called out another record quarter for them for us, so that is fantastic. At the same time in big box, when you're talking DICK'S and Academy, there is softness in the macro and that's causing probably widespread, not just in baseball for those resellers to see some softness.

是的。Marucci 做得很好，他們在第三季度所做的就是兌現了他們承諾做的事情，這是另一件事，正如您為我們指出的，他們又創紀錄的季度，所以這太棒了。同時，在大盒子裡，當你談論迪克和學院時，宏觀上存在著疲軟，這可能會導致廣泛的影響，而不僅僅是在棒球領域，那些經銷商會看到一些疲軟。

So we did see that come through in Q3, and we expect that in Q4. So we have some product launches in Q4 that we think will help. But we've got a macro that's pushing it down a little bit. Right now, we're so focused on 2025 with Marucci, the MLB agreements and all those things that sort what got the to focus on there now.

所以我們確實在第三季看到了這一點，我們預計在第四季也會出現這種情況。因此，我們在第四季度推出了一些我們認為會有所幫助的產品。但我們有一個宏可以將其降低一點。現在，我們非常關注 2025 年的 Marucci、MLB 協議以及所有這些現在需要關注的事情。

Got it. And just one more, if I could. I have a big picture question. Dennis, I fully appreciate being really focused on cost right now. But as you think about the longer-term track record of Fox, I think the story is clearly a growth story.

知道了。如果可以的話，就再多一個吧。我有一個大問題。丹尼斯，我非常感謝現在真正關注成本。但當你考慮到福克斯的長期業績記錄時，我認為這個故事顯然是一個成長故事。

Do you have any concerns about managing the brand and maybe going a little bit too far on cost and strangling that innovation pipeline? Just any thoughts about balancing costs and investments in the brand long term.

您是否擔心品牌管理可能會在成本上走得太遠並扼殺創新管道？只是關於平衡品牌長期成本和投資的任何想法。

Fantastic question. And so we've been dealing with this macro environment though, and there's OE uncertainty for far too long now. And quite frankly, we have not been delivering on our commitments as a result of these OE takedowns. And so we have just decided enough's enough, tired of trying to read the tea leaves from the OEs, and we are just taking decisive action where it makes sense.

很棒的問題。因此，我們一直在應對這種宏觀環境，而 OE 的不確定性已經存在太久了。坦白說，由於這些原始設備被下架，我們並沒有兌現我們的承諾。因此，我們決定受夠了，厭倦了試圖從 OE 中解讀茶葉，我們只是在有意義的地方採取果斷行動。

And so we began these exercises in, I'd say, late Q3. We identified what I consider 4 buckets where it really, really just makes sense, and it's going to make us stronger. Simplification and consolidation of our footprint is a massive opportunity for us to run after.

所以我們在第三季末開始了這些練習。我們確定了我認為的 4 個目標，這確實非常有意義，而且會讓我們變得更強大。簡化和整合我們的足跡是我們追求的巨大機會。

Reduction, elimination of nonperforming assets or products, that's going to help us some absorption. The reduction in inventory also is going to help us from efficiency perspective, warehousing prospective costs.

減少、消除不良資產或產品，這將幫助我們吸收一些。從效率和倉儲預期成本的角度來看，庫存的減少也將有助於我們。

And then just cost reduction overall, focusing on efficiencies where it makes sense, making sure that we have the right people in the plants, we feel like this is a path to set us up for best-in-class margins so that we can predictably deliver those margins in the future and allow us to scale up as that demand returns.

然後只是整體降低成本，專注於有意義的效率，確保我們的工廠擁有合適的人員，我們認為這是一條為我們提供一流利潤率的途徑，以便我們能夠可預測未來提供這些利潤，並使我們能夠隨著需求的恢復而擴大規模。

I mean, Mike, do you have some comments on that as well?

我的意思是，麥克，你對此也有什麼評論嗎？

Yes. No, I think it's a good question. And from my perspective, this company has operated very well at that $350 million a quarter range on the EBITDA side, closer to 20% EBITDA. We need to get back to that.

是的。不，我認為這是一個好問題。從我的角度來看，這家公司在 EBITDA 方面的每季 3.5 億美元的範圍內運作得非常好，接近 20% 的 EBITDA。我們需要回到這一點。

But most importantly, I actually think the brands are strengthened when we do that because then when the growth comes, we see exponential value of what we can do to meet that growth and supply it. They're really worth to just kind of clean up the system and make us a healthier company that allows us to grow faster when growth comes back to us.

但最重要的是，我實際上認為，當我們這樣做時，品牌就會得到加強，因為當成長到來時，我們會看到我們可以採取哪些措施來滿足這種成長並提供它。他們確實值得清理系統，讓我們成為一家更健康的公司，讓我們在成長回來時更快成長。

Yes. And I think it's just important to add to this, just having improved margins allows us that ability to continue to invest for growth, like we all said we would. And I think it's a perfect example of what you're seeing in Marucci, spending ahead on the MLB, spending ahead on softball launches before the season. If we can deliver predictable margins, it gives us the freedom to be able to continue to invest in ourselves in what we do best.

是的。我認為補充這一點很重要，僅僅提高利潤率就可以讓我們有能力繼續投資以實現成長，就像我們都說的那樣。我認為這是一個完美的例子，你在馬魯奇身上看到的，在美國職棒大聯盟(MLB)上提前花錢，在賽季前壘球發布上提前花錢。如果我們能夠提供可預測的利潤，那麼我們就可以自由地繼續投資於我們最擅長的領域。

Alex Perry, Bank of America.

亞歷克斯·佩里，美國銀行。

Just first, I wanted to clarify the bike guide, so sort of the legacy SSG business. I think in the prepared remarks, you said both bike and Marucci to be relatively flat with the prior year, which I think would imply a sequential dollar step down in the tune of $20 million or so quarter-over-quarter, 3Q to 4Q. Am I thinking about that right? I just wanted to clarify that.

首先，我想澄清一下自行車指南，也就是傳統的 SSG 業務。我認為在準備好的發言中，您說自行車和 Marucci 與上一年相對持平，我認為這意味著第三季到第四季季度環比下降 2000 萬美元左右。我這樣想對嗎？我只是想澄清這一點。

Correct. So to be really direct on bike, we're expecting it to be relatively flat with the prior year. So that would be around $78 million to $80 million, that's probably to what you're asking, right? And so -- then Marucci, we expect to be relatively flat with what they did combine [CODI] and us last year. Relatively speaking, that's right around $45 million.

正確的。因此，為了真正直接了解自行車，我們預計它與前一年相對持平。那麼這大約是 7800 萬到 8000 萬美元，這可能正是您所要求的，對吧？因此，Marucci，我們預計與他們去年 [CODI] 和我們的合併結果相對持平。相對而言，大約是 4500 萬美元。

Got you. Very helpful. And then I wanted to ask about gross margins, I guess, for the fourth quarter, the sort of implied gross margin outlook for the fourth quarter and then the big puts and takes for gross margin as we move into next year as well?

明白你了。非常有幫助。然後我想問第四季度的毛利率，第四季度的隱含毛利率前景，以及進入明年時毛利率的大看跌期權和看跌期權？

Well, so as we move forward here, I'll take PVG first. And so we were definitely handicapped as we lack that ability to quickly maneuver when we receive the late pull downs in the orders from the OEs. So we would expect to see a sequential improvement in PVG margins.

好吧，當我們繼續前進時，我會先選擇 PVG。因此，我們肯定受到了阻礙，因為當我們收到原始設備製造商的訂單延遲時，我們缺乏快速機動的能力。因此，我們預計 PVG 利潤率將連續改善。

In AAG, we did a accelerated inventory move, which hurt our margins probably by 300 basis points. We'd expect that to come back in Q4.

在 AAG，我們加速了庫存轉移，這可能使我們的利潤率下降了 300 個基點。我們預計這種情況會在第四季回歸。

And then when you move into bike and Marucci, the combined SSG segment there, we're going to continue to see growth with Marucci and bike from -- or relatively flattish margin perspective, sorry, sequentially, there.

然後，當你進入自行車和 Marucci（那裡的合併 SSG 細分市場）時，我們將繼續看到 Marucci 和自行車的成長，或者從相對平坦的利潤率角度來看，抱歉，按順序來看。

And then over the longer term, with these cost-out moves that we're continuing to make, you should see sequential improvement along the way.

然後從長遠來看，透過我們繼續採取的這些成本削減舉措，您應該會看到一路上的持續改進。

Scott Stember, ROTH MKM.

斯科特·斯坦伯，羅斯 MKM。

Yes. Moving over to the bike side. I think last quarter, we were definitely seeing, I guess, a flattening in North America and the US, but there was commentary about how Europe, at least with some of the OEMs there, that they did a better job of managing inventory, that you are starting to see some green shoots there. Can you maybe just talk about both of those sides of the business and how we -- things progress from Q4 into next year?

是的。移至自行車一側。我認為上個季度，我們肯定看到北美和美國的銷量趨於平緩，但有評論稱歐洲，至少是那裡的一些原始設備製造商，他們在庫存管理方面做得更好，你開始看到一些萌芽。您能否談談業務的這兩個方面以及我們從第四季度到明年的進展？

Yes. So Europe continues to do slightly better than the US in terms of the recovery. But one of the things we saw in Q3, Scott, that you might find interesting is when we looked at our business with our top 10. When I say top 10, it's top 10 OEMs, top 10 dealers and top 10 distributors.

是的。因此，歐洲在復甦方面繼續略好於美國。但斯科特，我們在第三季度看到的你可能會覺得有趣的事情之一是，當我們用前 10 名來查看我們的業務時。當我說前 10 名時，指的是前 10 名 OEM、前 10 名經銷商和前 10 名分銷商。

When we look at that basket in Q3, we were above our expectations, which signals to those bigger players are starting to get healthier faster, which is a great signal. What we also saw, though, was below that water line, below that top 10 list, we saw some, and in certain cases, significant softening in the smaller players.

當我們看到第三季的籃框時，我們超出了我們的預期，這表明那些更大的球員開始更快地變得更健康，這是一個很好的信號。不過，我們也看到，在水線以下、前十名名單以下，我們看到較小的參與者在某些情況下出現了顯著的軟化。

So it almost looks like now you've got an inversion where the big guys have come through a lot of the inventory issues, which have put them back into model year growth and attack, and you've got smaller players dealing with the cost of interest in floor plan financing and maybe a slower consumer, a more cautious consumer bringing those businesses.

因此，現在看起來幾乎已經出現了逆轉，大公司已經經歷了很多庫存問題，這使他們重新陷入車型年的增長和攻擊，而小公司則在處理成本問題。較慢的消費者，一個較謹慎的消費者帶來這些業務。

So it was an interesting change in the quarter where we started to see a lot of nice growth in the top 10 and some weakness in the bottom sector. I think that will continue through Q4. We'll take a look at what comes in 2025.

因此，本季發生了一個有趣的變化，我們開始看到前 10 名的行業出現了很大的成長，而排名靠後的行業則出現了一些疲軟。我認為這種情況將持續到第四季。我們將看看 2025 年會發生什麼。

Got it. And then just moving over to Marucci. You made some comments about things softening a little bit. And then you talked, I guess, on an apples-to-apples basis sounds like being flattish year-over-year in the fourth quarter. But can you maybe just talk about your initial expectations again from Marucci for next year, whether -- it sounds like you think they can grow and what it will be the vectors there that helped that happen?

知道了。然後就轉移到馬魯奇。你對事情有所軟化發表了一些評論。然後你說，我想，在同類的基礎上，第四季的業績年比持平。但你能否再次談談你對馬魯奇明年的最初期望，是否——聽起來你認為他們可以成長，以及幫助實現這一目標的載體是什麼？

Yes. A couple of things there. So macro aside, because what we don't want to do is try to comment on what the macro will do next year, that will be probably bad logic. But macro aside, we believe Marucci with the product launches we have planned and what we're doing in that space will grow double digits.

是的。有幾件事。因此，除了宏觀之外，因為我們不想做的是嘗試評論明年宏觀將做什麼，這可能是糟糕的邏輯。但拋開宏觀因素不談，我們相信 Marucci 透過我們計劃的產品發布以及我們在該領域所做的事情將會實現兩位數的成長。

In addition, what's interesting about the MLB agreement is it opens up so many new doors, even here locally at the Atlanta Braves Stadium, that opened up 14 new stores for Marucci with our agreement with MLB. So believe that additional growth on top of the product launches we already have planned will give us the growth in 2025 that we expect.

此外，MLB 協議的有趣之處在於它打開了許多新的大門，甚至在亞特蘭大勇士隊體育場，根據我們與 MLB 的協議，為 Marucci 開設了 14 家新商店。因此，相信除了我們已經計劃的產品發布之外，我們還將在 2025 年實現我們預期的成長。

Jim Duffy, Stifel.

吉姆·達菲，斯蒂菲爾。

I wanted to ask on upfitting. With the support for dealers in the third quarter, would you characterize channel inventories, not at a level that you would consider normal given the demand environment? Or is there still more work to do there?

我想問一下裝修的事在第三季對經銷商的支持下，您是否認為通路庫存處於您認為需求環境正常的水平？或是還有更多工作要做嗎？

And then secondly, on upfitting, sounds like you're rethinking the offering some, can you speak to the go-forward vision for positioning the product offering for that business? And with that, if there's opportunity for further adjustment to capacity?

其次，在裝修方面，聽起來您正在重新考慮產品，您能否談談為該業務定位產品的未來願景？那麼，產能是否還有進一步調整的機會呢？

Yes, Jim, I'll take the first half and Dennis can take the second half. So when some of the dealer inventories is very much a case-by-case basis based on the brand. Some of the dealers, specifically GM and in some cases, Ford, are pretty healthy. And we're seeing when they can produce the trucks, we get them, they sell through fairly nicely. Still having issues, of course, as you probably know, with Jeep and Stellantis. We have to do more work there to clear out those lots.

是的，吉姆，我負責上半場，丹尼斯負責下半場。所以有些經銷商庫存的時候很大程度是根據品牌具體情況而定的。有些經銷商，特別是通用汽車，有時還有福特，都相當健康。我們看到他們什麼時候可以生產卡車，我們得到它們，它們的銷售情況相當不錯。當然，正如您可能知道的那樣，吉普車和 Stellantis 仍然存在問題。我們必須在那裡做更多的工作來清理這些地塊。

And the most important thing when it comes to inventory is having the newest product in the newest model year. And so a lot of the work done in Q3 was they'll eliminate older model year vehicles so that we could have all of our force and effort into new model year launches coming up to this quarter and in the next year.

就庫存而言，最重要的是擁有最新型號年份的最新產品。因此，第三季度所做的大量工作是他們將淘汰舊車型年份車輛，以便我們可以將所有的力量和精力投入到本季度和明年推出的新車型年份中。

So outside of Stellantis and Jeep, I think we feel pretty good about where Ford and GM are heading. Ford had some quality issues this year that I think they've mainly resolved. And that'll help us in all [adjacent] product launches.

因此，除了 Stellantis 和 Jeep 之外，我認為我們對福特和通用汽車的發展方向感到非常滿意。福特今年遇到了一些品質問題，我認為他們已經基本解決了。這將有助於我們所有[相關]產品的發布。

Yes. Thanks, Jim. And we've been doing a lot of work with the team in Trussville, on product and several product road map meetings. In fact, since we took command. And I will tell you that we're developing a strategy which will allow more customers to participate at different price points.

是的。謝謝，吉姆。我們一直在與特魯斯維爾的團隊就產品和幾次產品路線圖會議進行大量工作。事實上，自從我們接任指揮以來。我會告訴你，我們正在製定一項策略，允許更多客戶以不同的價格參與。

So first and foremost, we're bringing performance back into all of our packages. I think that's really, really important. And then we're going to have multiple stages per brand. And so we'll be at price points that will allow many more consumers to participate in these offerings. And so we're just coming to that realization that not everybody wants a $150,000 truck. We got to have an array of price points out there based on the consumer.

因此，首先也是最重要的是，我們正在將效能重新帶入我們的所有軟體包中。我認為這真的非常非常重要。然後我們將為每個品牌設定多個階段。因此，我們的價格點將允許更多消費者參與這些產品。所以我們才意識到並不是每個人都想要一輛價值 15 萬美元的卡車。我們必須根據消費者的需求制定一系列價格點。

Okay. Great. And then last question, I wanted to ask on just the pricing environment with your OEMs, clearly not an environment where I would imagine there's a lot of pricing power. Are you, however, seeing the opposite where they're coming back to you and looking for better terms?

好的。偉大的。最後一個問題，我想問一下你們的原始設備製造商的定價環境，顯然不是一個我想像的有很大定價權的環境。然而，您是否看到相反的情況，他們會回到您身邊並尋求更好的條件？

It's a mixed bag. In some parts of our product lines, we see some requests for us to give some price consideration. Usually, it's around something specific to a product launch or a product engagement.

這是一個混合包。在我們產品線的某些部分，我們看到一些要求我們考慮價格的要求。通常，它是圍繞產品發布或產品參與的特定內容。

On a widespread basis, no, we're not seeing that. We continue to try to drive pricing through innovation. And so the more we can innovate on new products and get new products to these OEMs across every one of our product segments, we can take price up. So not a significant issue for us. It's part of the reality of the map we are in. So you're not wrong for asking. I think it's a good question. But for the most part, it's not a meaningful part of readout.

從廣泛的角度來看，不，我們沒有看到這一點。我們繼續嘗試透過創新來推動定價。因此，我們越能在新產品上進行創新，並為我們每個產品領域的原始設備製造商提供新產品，我們就能提高價格。所以對我們來說不是一個重要的問題。這是我們所處地圖現實的一部分。所以你問的並沒有錯。我認為這是一個好問題。但在大多數情況下，它不是讀出的有意義的部分。

Yes. And the reality is we're going to continue to invest in R&D because making sure that we're getting the newest best products out there is going to give us the best opportunity to continue with our gross margin profile.

是的。現實情況是，我們將繼續投資於研發，因為確保我們獲得最新、最好的產品將為我們提供繼續保持毛利率狀況的最佳機會。

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Can you talk about the structure of the Major League Baseball relationship with Marucci? I guess, minimum guarantees? Or is there a chance that if the consumer remains soft on the baseball bat side, that what you have to pay on the license side could de-lever the margin at Marucci? Or is it something that's just tied to your sales volume?

能談談美國職棒大聯盟與馬魯奇的關係結構嗎？我想，最低限度的保證？或者，如果消費者在棒球棒方面保持軟弱，那麼您在許可方面必須支付的費用是否有可能降低 Marucci 的利潤率？或者它是否只與您的銷量相關？

Yes. We can't go too far in the agreement with MLB. That's a confidential agreement, of course. But at the end of the day, we're really comfortable with what we've structured with them because they're so excited to have us come in and be their partner with both Marucci and Victus. So we see this as a net-net positive next year.

是的。我們與 MLB 的協議不能走得太遠。當然，這是一份保密協議。但歸根結底，我們對與他們合作的架構感到非常滿意，因為他們很高興我們能加入並成為他們與 Marucci 和 Victus 的合作夥伴。因此，我們認為這是明年的淨淨利好。

Even if there is softening in the big resellers when you think about big box, that softening at a stadium is going to be a whole different conversation. I don't think you're going to see that happening with some of the bats that we put in the stadium. And the minimum threshold -- the minimum commitments are pretty low. So we see this as all upside.

即使當你想到大盒子時，大型經銷商的​​態度有所軟化，但體育場的軟化將是一個完全不同的話題。我認為你不會看到我們放入體育場的一些球棒發生這種情況。最低門檻－最低承諾相當低。所以我們認為這都是有利的。

Okay. And then talking about the AAG accelerating inventory liquidation, is this really around upfit truck type product? Or are there other categories within AAG that we're seeing softness at the consumer's level?

好的。再說說AAG加速庫存清理，這真的是圍繞在改裝卡車類產品嗎？或者，我們在 AAG 中是否還有其他類別的產品在消費者層面上表現疲軟？

100% in the upfit side of the business. When you look at the aftermarket side, your lift kits, wheels, these businesses are performing very well.

100%在業務的升級方面。當你看看售後市場方面，你的升降機套件、車輪時，這些業務表現得非常好。

In our prepared remarks, I think we talked about it that those businesses are doing really well. They're hitting their commits, we're happy with them. So this is really around trying to get the chassis clean so that we can get the right chassis in for the efforts that we want to do.

在我們準備好的發言中，我想我們談到了這些企業做得非常好。他們正在履行自己的承諾，我們對他們感到滿意。所以這實際上是為了讓底盤變得乾淨，這樣我們就可以得到正確的底盤來完成我們想做的工作。

Okay. And then finally, I guess in the prepared remarks, I guess you talked about you think there was some signs of softness in consumer, is that sequential softness that you're seeing the underlying consumer getting worse into the end of '24 here, and that's giving you the challenging outlook for 25? Or is that -- or is that just the same trend you've been seeing in recent quarters?

好的。最後，我想在準備好的發言中，我想您談到了您認為消費者有一些疲軟的跡象，是連續的疲軟，您看到潛在的消費者在 24 年底變得更糟，並且這讓您對25 歲的前景充滿挑戰嗎？或者這與您最近幾季看到的趨勢相同？

It was softer in Q3. We think that probably played in Q4. Q4 is a bit of a different quarter. Obviously, we have increases due to Black Friday events and things with that and that comes to give it some sort of uplift. But yes, Q3 was softer from just an overall consumer confidence perspective.

第三季較為疲軟。我們認為這可能發生在第四季。第四季的情況有所不同。顯然，由於黑色星期五活動以及與之相關的事情，我們的銷量有所增加，這給它帶來了某種提升。但確實，從整體消費者信心的角度來看，第三季較為疲軟。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

You've addressed a lot already, but I wanted to go after the upfitting business again, Dennis. As you sit in that chair and assess the real total addressable market, would you frame it differently than maybe it's been framed in the past? And if so, how would you frame it?

你已經說了很多，但我想再次關注裝修業務，丹尼斯。當您坐在椅子上評估真正的整體潛在市場時，您會以不同於過去的方式來建造它嗎？如果是這樣，你會如何建構它？

So when you're talking about how we framed it in the past, I'm supposing you were talking about like the 15,000 to 16,000 upfits per year that we were doing.

因此，當您談論我們過去如何設計它時，我想您談論的是我們每年進行 15,000 至 16,000 次的改裝。

I think the opportunity is far greater than that, not that we can get there overnight, right, because it's going to be dependent upon getting the right chassis in the door, the right mix in the door. So as that mix and chassis volume improves, and then that, combined with our new product lineup that we're going after in these stages and putting performance back in as a priority. I do think that we're going to continue to see that grow.

我認為機會遠大於此，不是說我們可以在一夜之間到達那裡，對吧，因為這將取決於在門上安裝正確的底盤，在門上進行正確的組合。因此，隨著混合和底盤體積的改善，然後結合我們在這些階段所追求的新產品陣容，並將性能重新作為優先事項。我確實認為我們將繼續看到這種增長。

Another priority is very, very important to us is an increasing dealer count. And we are going to more aggressively pursue that in Q4 as well as into 2025. So I think these two things will be significant growth drivers for us moving forward, especially with a more accommodating macro environment.

對我們來說非常非常重要的另一個優先事項是增加經銷商數量。我們將在第四季以及 2025 年更加積極地實現這一目標。因此，我認為這兩件事將成為我們前進的重要成長動力，特別是在更寬鬆的宏觀環境下。

That's helpful, Dennis. And you also mentioned maybe a broader array of products addressing maybe different price points. Do you think there's an opportunity to sell more units per dealer with the good, better, best offering perhaps?

這很有幫助，丹尼斯。您也提到可能有更廣泛的產品系列，可能解決不同的價格點。您認為每個經銷商有機會以更好、更好、最好的產品銷售更多產品嗎？

100%, I do feel that that's going to be one of the important factors moving forward. And then also, I think we're going to appeal to more dealers, period, with more offerings. So I think those 2 items go hand in hand.

100%，我確實認為這將成為前進的重要因素之一。然後，我認為我們將透過更多的產品來吸引更多的經銷商。所以我認為這兩項是齊頭並進的。

I would now like to turn the call back to Mike Dennison for any additional or closing remarks.

我現在想將電話轉回給邁克·丹尼森，請其發表任何補充或結束語。

Thanks everybody's for the time today. We appreciate it, and a Happy Halloween.

謝謝大家今天抽出時間。我們很感激，祝萬聖節快樂。

Thank you. This does conclude the Fox Factory Holding Corporation's third quarter 2024 earnings call. You may now disconnect your line and have a great day.

謝謝。Fox Factory Holding Corporation 的 2024 年第三季財報電話會議到此結束。您現在可以斷開線路並度過美好的一天。