Polaris' CEO Scott Wine and COO Bennett Morgan speak on Q2 2015 Results. Here are some highlights….
“Motorcycle demand continues to outpace our ability to produce bikes and Slingshot is looking more like a home run than we anticipated. All leading the strong retail demand across the business.”
“Polaris North American retail share and retail sales accelerated in the second quarter. 11% increase was driven by excellent motorcycle retail demand and solid ORV contributions in the powersports industry that increased 3%. Our actions to improve dealer inventory are beginning to produce results. Inventory unit levels are down sequentially from the first quarter by 10% and dealer inventory is now up 15% versus 2014. Specifically, ORV inventory moderated some to low-teens percent and should continue to make progress throughout the year. Snowmobiles are up about 40%, but this is related to shipment timing snowfall last season and is manageable."
“Motorcycles are up mid-single digits in aggregate, including Slingshot, but still far shorter demand in every on-road brand and adjacent market inventory is up mid-single digits.”
“Slingshot. Slingshot demand remains hot and greater than our expectations. Product continues to retail as faster it arise in dealer showroom. As a result, we will execute an additional 10% production line rate increase later in August to help meet consumer and dealer demand. We made significant progress in Q2 with Texas, Indiana, Connecticut and North Dakota approving licensure. And we've already announced our model year ‘16 lineup with MSRPs increased by 5% to 6%, depending on the model."
"Snowmobiles. Second quarter revenues were $19.3 million, up 215% versus 2014. Model year ‘16 orders are complete and in total met our expectations. Our best consumer Snowcheck period in 13 years, led by the new model year ‘16 AXYS RMK lineup has us excited for the start of the upcoming fall snow shows and retail feedback."
"Parts, garments and accessories. PG&A momentum improved in Q2 with revenue up 17%, driven by strength in the U.S. market as well as motorcycle and ORV related products. Year-to-date revenue improved up 15%. All product segments grew. Accessories were up 23%, apparel was up 48% and parts increased 9%.”
Source: Seeking Alpha Transcript of Q2 Earnings Report