Quarterly U.S. retail sales for Polaris Industries dropped 3% year over year, partly driven by bad weather, the company stated in an earnings call.
“I’m reluctant to blame weather for a weaker than expected ORV and motorcycle retail, but their sharp rebound in the final two weeks of March corresponded so closely with the improved weather that I must acknowledge it was a factor,” Chief Executive Scott Wine said on the call.
Specifically, both off-road vehicle and motorcycle segments saw U.S. sales decline in the first quarter. ATV retail sales dropped 10% year over year, while side-by-sides were down in the low single-digit percentage.
Snowmobiles, which are included in the off-road segment, were up 20% year over year, but it wasn’t enough to offset the sales decline of the rest of the segment, Wine added.
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Motorcycle sales dropped 10% to $117.9 million compared with the same period last year. The decline for the segment was primarily driven by decreased Slingshot sales, which were in the low double-digit percentage, according to Polaris.
Indian Motorcycle sales dropped in the low single-digit percentage due to “challenging weather, continued weak market trends, and increased competitive promotional spending,” Chief Financial Officer Mike Speetzen said during the call. However, the company reported that Indian still gained market share.
Despite the year over year drop in retail sales, the company saw an increased performance in the final two weeks of the quarter. The sales momentum continued into April, giving the company a positive outlook for the second quarter.Like This Article