Holley Inc. reported a challenging financial performance for the thirteen and thirty-nine weeks ended September 29, 2024, compared to the same periods in the previous fiscal year. For the thirteen-week period, net sales decreased to $134.0 million, down 14.4% from $156.5 million. This decline was attributed to lower sales volumes across major product categories, particularly electronic systems, exhaust, and mechanical systems, which collectively contributed to a significant drop in revenue. Gross profit also fell to $52.3 million, a decrease of 10.4%, while operating income plummeted 71.2% to $5.6 million. The company reported a net loss of $6.3 million, contrasting sharply with a net income of $0.8 million in the prior year.

For the thirty-nine weeks, net sales totaled $462.2 million, down 8.3% from $503.0 million. Gross profit for this period was $174.7 million, a decline of 10.8%, and operating income decreased by 42.0% to $43.6 million. Net income for the thirty-nine weeks was $14.5 million, down from $18.0 million in the previous year.

The company’s financial position showed some improvement in liquidity, with cash and cash equivalents increasing to $50.8 million as of September 29, 2024, compared to $41.1 million at the end of 2023. Total current assets rose slightly to $298.6 million, while total liabilities decreased to $725.5 million, resulting in total stockholders' equity of $458.7 million.

Strategically, Holley Inc. undertook significant actions, including a strategic product rationalization charge of $8.8 million aimed at eliminating unprofitable inventory. The company also entered into a letter of intent to sell assets and liabilities of Detroit Speed Engineering for $5.6 million, resulting in a loss on held-for-sale assets of $7.5 million. Additionally, Holley agreed to sell land at Porter Pike for $2.4 million.

Cost management strategies were implemented to address inflationary pressures and supply chain disruptions, including price increases and inventory management. However, selling, general, and administrative costs rose by 11.0% for the thirty-nine weeks, reflecting increased operational expenses.

The company continues to navigate a complex economic landscape influenced by inflation, fuel costs, and consumer demand, which have impacted profitability and sales performance. Holley Inc. remains classified as an emerging growth company and is focused on innovation and strategic acquisitions to enhance its market position.