First Quarter 2017 Looks Great For Polaris

Polaris Slingshot 1 photo
Photo: Polaris
Despite the fact that Polaris had to shut down Victory Motorcycles’ production, the company released pleasing growth numbers for the first three months of this year.
Polaris Industies Inc. reported first quarter 2017 sales of $1,153.8 million, representing a 17 percent increase from the same period in 2016. Adjusted sales, which excludes the impact from Victory Motorcycles net sales for the first three months were $1,158.9 million compared to $983 million.

“We saw continued strong performance from Indian Motorcycle and our ORV business improved its performance in the face of heavy competitive activity and a sluggish powersports environment,” commented Scott Wine, Chairman and Chief Executive Officer of Polaris Industries. “Overall, our dealer channel remains healthy with inventories down eight percent, and we continue to diligently work to enhance our dealer engagement.”

Motorcycle segment sales in the first part of 2017 hit $120.3 million, a decrease of 35 percent compared to last year’s first three months, which included $46.3 million of Victory wholegood, accessory, and apparel sales.

Indian Motorcycle sales increased in the first quarter thanks to strong retail sales, offset by lower Slingshot purchases, which were negatively impacted by low availability due to quality issues.

However, Polaris said it has made significant investments in its people, processes, and technology to increase the safety and quality of its machines.

On the other hand, off-road vehicle (ORV) and snowmobile segment sales were 2 percent over the the ones in the first quarter of 2016. Gross profit increased three percent to $213 million, or 29.4% of sales, in the first three months of 2017.

Aftermarket segment sales, which include Transamerican Auto Parts (TAP), along with the company's other aftermarket brands of Klim, Kolpin, Pro Armor, Trail Tech and 509, increased significantly to $217.8 million in the 2017 first quarter compared to $15.5 million in the 2016 first quarter.

With the new numbers in, Polaris looks forward to a great year, expecting overall sales to increase in the range of 10% to 13% over last year’s figures.
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