Polaris Industries experienced 10% overall sales growth in the second quarter of 2018, the company reported in an earnings call.
Sales increased to $1.5 million compared with $1.3 million during the same time the year prior. Meanwhile, U.S. sales increased 6% — driving growth to financial services that resulted in an 11% increase to $21 million year over year.
“The benefits of lower taxes and decreased regulation are aiding the economy and giving confidence to our core powersports customers,” Chief Executive Scott Wine said on the call. “They visited Polaris’ dealerships more frequently throughout the second quarter, and with our improved lead management tools, conversion rates were higher as demand for our industry-leading vehicles and accessories drove strong sales and earnings to close out the first half of 2018.”
Polaris’s largest segment, off-road vehicles, increased $991 million for the 2Q18, up 17% year-over-year compared with $846 million.
The motorcycle segment was down, however, decreasing 13% to $172 million. This was mostly driven by a weak North American motorcycle market. Though, Polaris reports that Indian Motorcycles experienced strong sales in lightweight vehicles and gained market share in a down market.
“Our average selling prices declined 6%, reflecting the strength of our Scout midsize bikes relative to the more challenged heavyweight segment of the Indian lineup,” Mike Speetzen, chief financial officer, said on the earnings call. “The average selling price was also impacted by lower Slingshot shipments given weak retail trends. We continue to experience strong demand outside North America with our International Motorcycle wholegood sales increasing 9% in the quarter.”
International sales accounted for $203 million, up 7% year over year. Motorcycle sales increased 9% and off-road vehicles grew 3%. Europe accounted for $148 million, up from $134 million the same time the year prior.