Arctic Cat Inc. moved its corporate headquarters to a six-story building in downtown Minneapolis from Plymouth, Minn. on Aug. 17, according to a company press release, which will allow the manufacturer to expand over time with 150 to 200 new personnel.
Arctic Cat, a manufacturer of ATVs, side-by-sides, and snowmobiles, will occupy a 55,000-square-foot office in a historic warehouse that was funded entirely by the building’s owner. The company’s previous 11,000-square-foot corporate office was “at capacity and unable to meet the future needs of the business,” according to the release.
“Our new location enables us to bring our leadership team and critical corporate functions together in one space, to better meet the needs of the business going forward,” the company’s President and Chief Executive Christopher Metz said in the release. Arctic Cat’s core Minnesota manufacturing operations in St. Cloud and Thief River Falls remain unaffected.
The move comes on the heels of Arctic Cat’s recent drop in earnings, due — in part — to more aggressive finance promotions this year, according to the company’s recent earnings report. Arctic Cat’s sales were down 22% to $104.9 million in the first-quarter ended June 30, from $134.4 million the same time a year prior.
Arctic Cat has been “forced to be more aggressive” with financial promotions this year as the company strives to gain a competitive advantage, said Seth Woolf, research analyst at Northcoast Research Partners. Additionally, Arctic Cat is trying to reduce inventory to the best of its ability, to make room for its new products, Woolf added, and one of the fastest ways to reduce inventory is to ramp financial promotions up.