International Dealer News IDN 143 June/July 2018 | Page 22
THE AMERICAN REPORT
Polaris reports +12 percent sales for Q1
Polaris Industries reported first quarter
2018 sales of $1,297 million, up +12
percent from $1,154 million for the
first quarter of 2017, with first quarter
2018 net income of $56 million ($0.85
per diluted share) compared with a net
loss of $3 million ($0.05 per diluted
share) for the 2017 first quarter.
“We delivered record first quarter Off-
Road Vehicle retail sales to begin the
year, driven by innovation and
improved dealer engagement. This
translated into strong revenue and
earnings growth for the quarter,”
commented Scott Wine, Chairman and
Chief Executive Officer of Polaris
Industries.
Polaris increased its full year 2018
sales guidance to up 4% to 6% and
narrowed its full year earnings
expectations by raising the lower end
of its earnings per share range, and
now expects adjusted net income to be
in the range of $6.05 to $6.20 per
diluted share, which includes the
absorption of an additional
approximately $15 million of
commodity, freight and tariff costs
anticipated in 2018.
“We are fully prepared to build upon
this early success and deliver solid
growth for the full year. Our production
flow improved steadily throughout the
quarter and inventory, snow
notwithstanding, is in great shape.
With the recent introduction of the all
new RANGER XP 1000 and the 72-
inch RZR XP Turbo S, and a robust
innovation pipeline, we are
exceptionally well positioned to bring
more customers into Polaris dealers.
While we must overcome significant
commodity, freight and tariff
headwinds throughout the remainder
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands US $)
THREE MONTHS ENDED MARCH 31
of the year, I am confident Polaris is
taking the necessary steps towards
becoming a customer-centric, highly
efficient growth company,” Wine
concluded.
North American retail sales increased
3% for the quarter; ORV N.A. retail
sales were up mid-single digits %,
with side-by-side vehicles up high-
single digits %. Gained market share
in RANGER, RZR and Sportsman ORV
brands during the quarter along with
share gains in both Indian and
Slingshot motorcycle brands. Total first
quarter 2018 dealer inventory was up
6% year-over-year; ORV dealer
inventory was flat.
Motorcycle segment sales, including
PG&A, totalled $132 million, an
increase of nine percent compared to
$120 million reported in the first
quarter of 2017. I ndian Motorcycles
wholegood sales increased in the low-
double digits percent range in the first
quarter of 2018, while Slingshot sales
were down low-double digits percent.
Gross profit for the first quarter of
2018 was a positive $17 million
compared to a loss of $20 million in
the first quarter of 2017. Adjusted for
the Victory wind-down costs recorded
in both the 2018 and 2017 first
quarters, motorcycle gross profit was
$17 million, or 13 percent of sales in
the 2018 first quarter compared to
$19 million, or 15 percent of sales for
the 2017 first quarter, down on a
dollar and percent of sales basis due
to higher warranty expense for
Slingshot.
North American consumer retail
demand for the Polaris motorcycle
Sales
Cost of sales
Gross profit
Operating expenses:
Selling and marketing
Research and development
General and administrative
Total operating expenses
Income from financial services
Operating income
Net income (loss)
segment, including Indian Motorcycle
and Slingshot, increased low-single
digit percent during the 2018 first
quarter. Indian Motorcycle retail sales
increased low-single digits percent.
Slingshot’s retail sales were down mid-
single digits percent during the
quarter. Motorcycle industry retail
sales, 900 cc and above, were down
mid-teens percent in the 2018 first
quarter. Both Indian Motorcycle and
Slingshot gained market share for the
2018 first quarter on a year-over-year
basis, in spite of unusually cold and
wet weather in March and an overall
weak N.A. industry motorcycle market
in the first quarter.
International sales to customers
outside of North America, including
PG&A, totalled $211 million for the
first quarter of 2018, up 27 percent
from the same period in 2017. Foreign
exchange movements represented 11
2018 2017
1,297,473
973,992
323,481 1,153,782
911,291
242,491
117,707
65,230
78,693
261,630
21,425
83,276 114,313
52,005
75,514
241,832
20,430
21,089
55,714 (2,911)
percent of the sales increase for the
quarter. The remaining increase was
driven by strong sales in the company’s
EMEA business.
Gross profit increased 33 percent to
$323 million for the first quarter of
2018 from $242 million in the first
quarter of 2017. Reported gross profit
margin was 25 percent of sales for the
first quarter of 2018 compared to 21
percent of sales for the first quarter of
2017.
During the quarter, Polaris recorded
charges of $20 million, including the
impairment of the company’s equity
investment in the Eicher-Polaris joint
venture in India. The two partners have
ended their relationship and ceased
production of the ‘Multix’ personal
utility vehicle. Eicher Motors is the
parent company of Royal Enfield.
Motorcycle Storehouse is
exclusive UK distributor for RSD
California based Roland Sands
Design has announced that
Motorcycle Storehouse UK has
been named the exclusive
distributor of its apparel brand
in the UK.
“The UK market is vital to our
brand,” states Brand Director
Rob Ramlose. “Having a
dynamic partner like Motorcycle
Storehouse UK gives us the
bandwidth to grow the Roland
Sands Apparel brand in a
positive, upward direction.”
“We are proud and excited at
this opportunity to represent
Roland Sands Design in the UK
22
market,” said Michael
Oldekamp, Apparel Manager at
Motorcycle Storehouse. “Roland
is one of the industry’s most
gifted and innovative
customisers, inspiring
motorcycle enthusiasts all over
the world.”
Roland Sands has stated that
the transition should be
seamless and wants to thank all
their retailers for their support
of the brand over the years and
to assure them of their support
through this transition.
Any retailer with questions may
contact the apparel group
INTERNATIONAL DEALER NEWS - JUNE/JULY 2018
directly via
[email protected].
www.rolandsands.com
www.motorcyclestorehouse.com
Recent additions to the RSD apparel programme, ‘Launch’, ‘Truman’ and
‘Strand’ gloves, merge “the best performance, comfort and style”