DULUTH, Ga. (BRAIN) Fox Factory produced sales increases across all three of its divisions in the second quarter, with sales in its Speciality Sports Group which includes its bicycle-related brands up 11% over the same period last year.

The company said the division's sales increase to $137.2 million "is related to the stabilization in bike sales."

Fox Factory sells bike products under the Fox, Marzocchi, RaceFace, Easton and RideConcepts brands. The SSG division includes those brands and the Marucci baseball/softball brand (which includes the Lizard Skins grip and bar tape business). Its largest business is selling suspension components as original equipment to bike factories.

The company noted that the sales increases were year-over-year and sequential, following a revenue increase in the first quarter.

"We've built a strong foundation for enhanced profitability as we navigate an evolving tariff landscape. Our proactive cost reduction and working capital improvement initiatives including footprint optimization across three continents, production shifts from higher-cost regions, strategic sourcing, and customer pricing discussions are helping us manage through this period," CEO Mike Dennison, said in a press release.

Company-wide, EBITDA was $49.3 million in the second quarter, improved from $44.1 million in the second quarter last year.

In the first half, SSG sales were up 8.9% to $258 million. Company-wide, first-half sales were up 7% to $729.9 million. Adjusted EBITDA for the first half was $88.9 million, up from $84.6 million. Fox took a $260 million goodwill impairment in the first quarter, previously reported, resulting in a net loss of $257 million, or $6.15 per share, in the half.

Fox increased its guidance for the full fiscal year. "(I)n consideration of the company's year-to-date performance and current visibility to tariff impacts, it now expects net sales in the range of $1.45 billion to $1.51 billion, adjusted earnings per diluted share in the range of $1.60 to $2.00, and a full year adjusted tax rate in the range of 15% to 18%," it said in the press release. Previously, Fox had said it expected net sales of $1.385 billion to $1.485 billion and adjusted EPS of $1.60-$2.60.

The earnings announcement came the same day as new tariffs took effect on imports from Taiwan, where Fox makes many of its bicycle products. It now says its tariff expenses will total "upwards of $50 million" in 2025, up from a previous estimated of $38 million.

"However, the Company has identified countermeasures to partially offset these impacts and believes it can absorb this unmitigated component in its updated guidance for full year 2025," the company said.

Fox's stock is traded on Nasdaq under the FOX symbol.