Fox Factory replaces CEO, cuts fiscal 2026 outlook on weak Q3

Fox Factory Holding Corp. (NASDAQ: FOXF) announced on Oct. 16, 2026, that its board of directors has appointed independent director Douglas Grimm as interim chief executive officer, effective immediately. Mike Dennison stepped down as CEO and as a board member on the same date.

The company has retained executive search firm Heidrick & Struggles to identify a permanent CEO. The search will be led by board Chair Jean Hlay and directors Tom Duncan and Grimm, who is not a candidate for the permanent role. Alan Bazaar will succeed Grimm as chair of the Audit Committee.

Grimm has more than 40 years of experience in the automotive and industrial sectors. He currently serves as chairman of Blue Bird Corporation (NASDAQ: BLBD) and as a board member of Lucid Group, Inc. (NASDAQ: LCID).

Alongside the leadership change, Fox Factory reported preliminary third-quarter fiscal 2026 results that fell short of its own guidance. Net sales for the quarter ended Oct. 2, 2026, are expected to range from $336 million to $340 million, compared to guidance of $355 million to $380 million. Adjusted EBITDA, excluding approximately $12 million in IEEPA tariff refunds, is expected to be $38 million to $42 million, below guidance of $46 million to $54 million.

The company attributed the shortfall to lower sales and margins at Marucci Sports ahead of its divestiture, a supply disruption in the Powered Vehicles Group, operational challenges in the Aftermarket Applications Group's upfit business, and softer-than-expected bike sales. The divestiture of Marucci Sports closed on Sept. 25, 2026.

Fox Factory lowered its full fiscal 2026 outlook. Net sales are now expected to be $1.35 billion to $1.38 billion, down from prior guidance of $1.42 billion to $1.47 billion. Adjusted EBITDA, excluding $14 million in IEEPA tariff refunds, is now projected at $140 million to $150 million, compared to prior guidance of $176 million to $196 million.

The company scheduled its third-quarter fiscal 2026 earnings conference call for Nov. 5, 2026.

You May Also Be Interested In

• NeOnc expands Abu Dhabi program, schedules FDA meeting for NEO212
• Voyager Therapeutics names Robin Swartz president, plans CEO shift
• Shimmick completes $14.3M equipment refinancing at lower rate