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BRP continued to push the boundaries in Q2 by enhancing its existing product lines , as well as with the formal launch of its Can-Am Pulse and Can-Am Origin all-electric motorcycle lineup , marking its official entry into the electric motorcycle industry .
BRP ’ s financial results for the three- and six-month periods ended July 31 , 2024 . All financial information is in Canadian dollars unless otherwise noted . The complete financial results are available in the quarterly reports section on BRP ’ s website .
“ Our results were in line with expectations and reflect our ongoing focus on reducing network inventory to maintain our dealer value proposition . We have made great strides on that front , but the retail environment is more challenging with the economic context pressuring consumer demand . As such , our
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priority is to continue to proactively manage production and inventory levels , which leads us to revise our year-end guidance ,” says José Boisjoli , president and CEO of BRP .
“ We are coming off a successful dealer event , during which we introduced industryleading innovations , including our Can-Am electric motorcycles , reflecting our ongoing commitment to investing in R & D ,” he continues . “ Looking ahead , we have every confidence in our long-term strategy , and remain focused on building a strong future . We are best positioned to stay on top as we continue leveraging our solid business fundamentals .”
Q2 RESULTS The company continued to focus on reducing network inventory levels during Q2 ( FY25 ), resulting in fewer shipments and a
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decline in revenues compared to the same period last year . The decrease in the volume of shipments and higher sales programs , due to increased promotional intensity and decreased leverage of fixed costs as a result of reduced shipments , led to a decrease in the gross profit and gross profit margin compared to the same period last year .
The company ’ s North American quarterly retail sales for powersport products were down 18 % for the three-month period . BRP says this is due to softer industry demand for its seasonal and year-round products .
REVENUES Revenues decreased by $ 936.1 million , or 33.7 %, to $ 1,841.9 million for the threemonth period , compared to $ 2,778.0 million for the corresponding period in 2023 . The
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revenue decrease was primarily due to a lower volume sold across all product lines , as the company says it maintained its focus on reducing network inventory levels and higher sales programs . The decrease was partially offset by favorable product mix across most product lines . The decrease includes a favorable foreign exchange rate variation of $ 29 million .
Year-round products ( 54 % of Q2−FY25 revenues ): Revenues from year-round products decreased by $ 476.6 million , or 32.6 %, to $ 985.0 million for the three-month period ended July 31 , 2024 , compared to $ 1,461.6 million for the corresponding period ended July 31 , 2023 . The decrease in revenues from year-round products was primarily attributable to a lower volume sold across all product lines , as the company maintained its focus on
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SEPTEMBER 2024 VS . SEPTEMBER 2023
On average , dealers were down 10.7 % in combined revenue in September according to composite data from more than 1,700 U . S . dealers that use the Lightspeed DMS . Every region was down in every department in September compared to the year ago month . The Midwest was down the most signifi cantly in parts , reporting a drop of 11.5 %. The Northwest followed , down 11.0 %, and every other region was down between 9.7 % and 10.8 %. In the service department , the West was down
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8.9 %, followed by the Northwest , down 8.7 %. The Northeast was down the least signifi cantly in service , down 4.3 %. The sales department produced the biggest drop in revenue in September . The average dealer was down 11.2 % in sales , led by the West , down 13.6 %. The South and Midwest were down 11.8 % and the Northwest was down 11.1 %. The Northeast reported the least signifi cant drop in sales revenue , down 5.5 %. Combined revenue was down between 10 % and 13 % for every department but the Northeast , which was down 5.7 %. |
PARTS SALES Parts sales revenue was up at 600 dealerships and down at 1,232 .
SERVICE SALES Service revenue was up at 717 dealerships and down at 1,088 .
MAJOR UNIT SALES A total of 591 dealerships were up and 1,078 were down .
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FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data , contact : lightspeeddms . com
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