Off-Road, Three-Wheeled Vehicle Sales Drive BRP Growth in 4Q

BRP‘s fourth-quarter U.S. retail sales grew 9% year over year, with all of the OEM’s vehicle categories experiencing growth, the company announced in a March 22 earnings call.

Total revenue from year-round products — which consist of side-by-sides, ATVs, and three-wheeled vehicles — was up 17% year over year, to $445.6 million. North American sales of year-round products increased in the low-20% range.

Valcourt, Canada-based BRP credited its growth with a higher volume of side-by-sides sold and the introduction of the three-wheeled Can-Am Ryker. In the U.S., BRP side-by-sides experienced sales growth in the high teens, ahead of the industry, which was up a low single-digit percentage, according to BMO Capital Markets Analyst Gerrick Johnson.

“[BRP’s] brands continue to generate robust retail sales growth and have gained share in almost all of the categories in which it competes owing to strong innovation, better marketing, expansion of its distribution channel, and a solid overseas business,” Johnson wrote in a report provided to Powersports Finance. “Dealer feedback continues to be strong.”

BRP’s U.S. sales outperformed the industry as a whole, which was flat in the fourth quarter, Johnson said.

For More: BRP Rebates Outpace Other OEM Promos in February, Analyst Says

Meanwhile, BRP’s Ryker models are performing “better than we had expected,” Johnson said. Three-wheeled vehicle sales tripled year over year. The Ryker was introduced in September 2018 at a lower price point ($8,499 MSRP) than the Can-Am Spyder (base price $15,999).

Global jet-ski and snowmobile sales grew 32% to $430.7 million year over year, while sales for those segments were up in the low single digits, in line with industry trends. Inconsistent snowfall and low levels of non-current model year inventory slowed snowmobile sales growth, BRP reported.

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