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FINANCE
Powersports Business • August 2024 • 11
Polaris Off-Road summary for Q2 . Polaris Shipment and EPS Walks summary for Q2 .
SEGMENT HIGHLIGHTS Off Road
Sales were driven by lower volume and net pricing driven by higher promotional spend , partially offset by increased Parts , Garments and Accessories ( PG & A ) sales . PG & A sales increased 10 percent . Gross profit margin performance was driven by lower net pricing driven by higher promotional activity and unfavorable plant absorption , partially offset by operational improvements .
Polaris North America ORV unit retail sales were down four percent . Estimated North America industry ORV unit retail sales were down mid-single digits percent .
On Road Sales were driven by lower volumes . PG & A sales decreased 10 percent . Gross profit margin performance was driven by negative product mix and lower net pricing driven by higher promotional activity , partially offset by operational improvements .
North America unit retail sales for Indian Motorcycle were down low twenties percent . Estimated North America unit retail sales for the comparable motorcycle industry were down mid-single digits percent .
Marine Sales results were driven by lower volumes .
Gross profit margin performance was impacted by decreased sales volumes and lower net pricing driven by higher promotional activity .
As reported , the second-quarter net income attributable to Polaris of $ 69 million decreased by 49 percent , and diluted earnings per share ( EPS ) of $ 1.21 decreased 48 percent compared to the second quarter of 2023 . Adjusted net income attributable to Polaris for the quarter was $ 78 million , down 44 percent , and adjusted EPS was $ 1.38 , down 43 percent , compared to the second quarter of 2023 .
Gross profit margin decreased 117 basis points to 21.6 percent for the second quarter , as compared to the second quarter of 2023 . The adjusted gross profit margin of 21.8 percent decreased 99 basis points , primarily driven by higher promotional activity , unfavorable plant absorption , and higher finance interest partially offset by favorable operational costs , compared to the second quarter of 2023 .
2024 OUTLOOK Polaris updated its 2024 sales outlook to be down 17 to 20 percent versus its previous outlook of down five to seven percent versus 2023 . The company now expects adjusted diluted EPS attributed to Polaris Inc . common shareholders to be down 56 to 62 percent versus 2023 versus the prior outlook of down 10 to 15 percent .