Fox Factory Holding Corp. (NASDAQ:FOXF) Q4 2022 Earnings Call Transcript

Scott Humphrey: Yes. I think we’ve made a lot of strides on reducing chassis inventory and you’ve seen that pay off over the last two quarters with some good cash flow generation out of working capital reduction. I think for us this year, it’s going to be maybe a little bit of a continuation of that and then trying to keep inventory flat as we grow or work off some of the inventory that we’ve accumulated and potentially even go down a little bit. And so we’ve got some good working capital stories over the last couple of quarters and hoping to continue that through the first half of this year.

Craig Kennison: Great. Thank you.

Operator: Thank you. And at this time, we have no further questions in the queue. So I would like to turn the call back over to Mike Dennison for any additional or closing remarks.

Mike Dennison: Thanks, Chelsea. And I appreciate really taking the time for today’s call. One comment that I didn’t make in the Q&A period that I probably should have, when we think about the bike business and the bike demand, one of the things we’ve talked about a lot over the prior quarters is the strength of the e-bike business, which €“ and the change in demographic in biking caused by the innovations happening in e-bikes. That remains incredibly strong. So we are still very bullish on the e-bike side of the business as well, and we think that’s going to help us as we come through this kind of inventory challenge as they get back to growth. e-bike would be a big factor in that. So there is some good news as well in all the commentary on bike and I’d say that’s around how they think about the e-bike and the innovation around that space. With that, we will end the call and have a good evening. Look forward to talking to everybody soon. Thank you.

Operator: Ladies and gentlemen, this does conclude the Fox Factory Holding Corporation’s fourth quarter and full year 2022 earnings call. You may disconnect your line, and have a great day.