PowerSports Business

Sept 4, 2017

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w w w . p o w e r s p o r t s b u s i n e s s . c o m INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE September 4, 2017 • Volume 20, Number 12 • $3.99 ARGO, known for its amphibious extreme terrain vehicles, enters the ATV market as it celebrates its 50th year After three improving quarters, business conditions decline Reversing the trend of sequential improvement that's been observed in the prior three quar- ters, only 63 percent of dealers categorized business conditions as either average, good, or very strong in the second quarter, down from 80 percent in the first quarter in the first quarter of 2017 and 67 percent in the second quarter of 2016. However, 52 percent of dealers called out weather as having a negative impact on their results. Still, even with a weather excuse at the ready, dealer outlooks have also deteriorated in this survey. Those are among the findings in the Q2 2017 Powersports Business/BMO Capital Mar- kets Dealer Survey. A total of 96 dealers from 39 states and four Canadian provinces, who combined to represent 50 franchises, participated in the survey. States that did not have a dealership represented in the survey were Delaware, Georgia, Hawaii, Nebraska, New Jersey, Okla- homa, Oregon, Rhode Island, Vermont, Vir- ginia and Wyoming. A total of 92 percent of the respondents have one dealership location. They sell the fol- lowing segments: motorcycles (81 percent), traditional ATVs (81 percent), side-by-sides (76 percent), PWC/boats (35 percent) and snowmobiles (35 percent). Only 13 percent of dealers reported that their Q2 business performance was above plan. Another 38 percent said they were on plan, and 49 percent said they were below plan. A consistent source of feedback was that 2Q17 was a challenging quarter from a weather perspective, often times citing significantly more rain than usual in the quarter. Bad weather shortens the riding season, which in turns limits the window dealers can sell new Dealer outlook deteriorates in Q2: survey SALES LEAD TO GROWING SHOWROOM Northway Sports expands to increase ORV space BY LIZ KEENER SENIOR EDITOR After pulling on the dirt bike handlebar- turned front door handle, I walked into Northway Sports and immediately stared down four Slingshots — a display the dealership wasn't able to accommodate months earlier. To the left was a sprawling off-road showroom, complete with more than 20 Polaris units. It was shocking to think that area didn't exist in 2016. Northway Sports, in East Bethel, Min- nesota, recently underwent an expansion that nearly doubled its space. In addition, the dealership adjusted to the discontinu- ation of Victory Motorcycles and added the Polaris Retail Experience display. 20 YEARS IN THE MAKING Dan Richardson is celebrating his 20th GROWING See Northway Sports, Page 6 SALES LEAD TO GROWING SHOWROOM SALES LEAD TO GROWING SHOWROOM GROWING GROWING Dan Richardson owns Northway Sports in East Bethel, Minnesota. Photo by Liz Keener/Powersports Business See Dealer Survey, Page 8 HOW WOULD YOU CHARACTERIZE YOUR CALENDAR Q2 (APRIL-JUNE) BUSINESS PERFORMANCE RELATIVE TO PLAN? Above plan 13% On plan 38% Below plan 49% Source: Powersports Business/BMO Capital Markets See Page 38.

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