Holley Inc. ( (HLLY) ) has released its Q3 earnings. Here is a breakdown of the information Holley Inc. presented to its investors.
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Holley Performance Brands (NYSE: HLLY) is a prominent player in the automotive aftermarket performance solutions industry, offering a wide array of high-performance products for car and truck enthusiasts. The company is known for its iconic brands that cater to a diverse community of automotive enthusiasts interested in enhancing their vehicles’ performance and personalization.
In its third-quarter 2024 earnings report, Holley Inc. reported a notable decrease in net sales by 14.4% to $134 million, accompanied by a net loss of $6.3 million. Despite this decline, the company successfully executed several strategic initiatives, including digital modernization and enhancement of customer service, which have contributed to notable improvements in certain business segments.
Key financial metrics revealed a challenging quarter with a decrease in both adjusted EBITDA and free cash flow compared to the previous year. However, the company saw a 16% increase in its direct-to-consumer channel and significant growth in key power brands like ADS and Simpson. Holley also experienced a 133% increase in revenue per SKU year-to-date and a 25% rise in new product revenue, showcasing its efforts to drive growth despite broader economic challenges.
Holley’s management remains optimistic about its strategic direction, focusing on aligning distribution partner inventories with market demand and enhancing customer engagement through events. Although the company has lowered its full-year expectations due to industry softness, it believes its continued investments in direct-to-consumer channels and partnerships will help maintain market share.
Looking ahead, Holley projects net sales between $133 million and $143 million for the fourth quarter, with adjusted EBITDA ranging from $24 million to $29 million. The company is poised to navigate the uncertain market conditions while leveraging its strategic initiatives to foster future growth.
