Powersports Business August 2024 | Page 10

10 • August 2024 • Powersports Business

FINANCE www . PowersportsBusiness . com

Polaris reports ʻchallenging ’ Q2 earnings

The second quarter proved challenging for Polaris as the industry continued to contend with elevated interest rates , inflation , and an increasingly cautious dealer and consumer . CEO Mike Speetzen says the company is focused on progressing against key priorities , including manufacturing efficiency improvements and innovation .
Reducing dealer inventory is a central priority for Polaris , both through intentional retail driving efforts and by adjusting production forecasts to further reduce dealer shipments . Speetzen says they have lowered the full-year guidance to reflect the decision to cut shipments and believes that current industry challenges will remain in place for the remainder of the year .
“ Although it might take longer than originally anticipated , I am confident in our longterm strategy and the Polaris team ’ s ability
to emerge stronger and well-positioned to drive profitable growth , deliver value to shareholders , and capitalize on our position as the powersports industry leader ,” Speetzen says .
Polaris reported worldwide sales of $ 1,961 million for the second quarter , down 12 percent compared to the second quarter of 2023 . North America ’ s sales of $ 1,677 million represented 86 percent of total company sales and decreased 11 percent from $ 1,883 million in 2023 . International sales of $ 284 million represented 14 percent of total sales and decreased 15 percent versus the second quarter of 2023 . Total sales in the second quarter of 2024 were negatively impacted by lower volume and net pricing driven by higher promotional activity partially offset by a favorable product mix . Polaris Q2 North American retail trends .
Source : Polaris
DEALER FINANCIAL SNAPSHOT

NORTHWEST -10.2 % Parts Department -11.5 % Service Department -13.0 % Major Units -12.6 % Overall

WEST -13.7 % Parts Department -10.2 % Service Department -15.1 % Major Units -14.4 % Overall

UNITED STATES -13.1 % Parts Department -8.5 % Service Department -13.0 % Major Units -12.6 % Overall

MIDWEST -16.3 % Parts Department -9.7 % Service Department -18.3 % Major Units -17.3 % Overall

SOUTH -12.2 % Parts Department -6.3 % Service Department -10.5 % Major Units -10.2 % Overall

NORTHEAST -11.3 % Parts Department -7.8 % Service Department -8.5 % Major Units -8.6 % Overall

JUNE 2024 VS . JUNE 2023 In June , the average dealer was down 12.6 % in combined revenue according to composite data from more than 1,700 dealers in the U . S . that use the Lightspeed DMS . Following last month ’ s trend , the most signifi cant revenue decrease was reported in the parts department , down 13.1 %. The Midwest region was down the most in parts , reporting a 16.3 % decrease , and the remaining regions were down between 10 % and 14 %. Dealers were down an average of 8.5 % in the service department , with the South reporting the least signifi cant
drop of 6.3 % in service revenue . The Northwest was down the most in service , reporting an 11.5 % dip . In the sales department , dealers were down an average of 13.0 %. The Midwest was down 18.3 %, the West was down 15.1 %, and the Northwest was down 13.0 % in sales . The Northeast reported the lowest combined revenue drop , down 8.6 % in June , while the Midwest reported a 17.3 % decrease , and the West reported a 14.4 % decrease in combined revenue . Dealerships across the nation were down an average of 12.6 % in combined revenue in June .
PARTS SALES Parts sales revenue was up at 497 dealerships and down at 1317 .
SERVICE SALES Service revenue was up at 698 dealerships and down at 1131 .
MAJOR UNIT SALES A total of 575 dealerships were up and 1124 were down .
FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data , contact : lightspeeddms . com