Great Polaris First-Quarter 2018

Polaris Industries Inc. (NYSE:PII) announced strong first-quarter 2018 results on Tuesday morning, detailing improved production ahead of the peak retail selling season and its best-ever start to the year for off-road vehicle (ORV) sales. Polaris also modestly increased its full-year guidance.

Polaris Industries results: The raw numbers

Motorcycle sales grew 9% to $132 million, as low-double-digit growth from Indian motorcycles more than offset low-double-digit declines from Slingshot.
North American consumer retail demand for Indian motorcycles and Slingshot together increased in the low-single-digit percent range, outperforming a midteens percent decline from the broader motorcycle industry (900cc and above).

Global adjacent market revenue grew 24% to $113 million, including double-digit growth from both Aixam and the commercial/government/defense group.
Aftermarket segment sales grew 1% to $220 million, including a slight decline in TAP aftermarket accessory revenue due to soft light-duty truck industry sales.On an adjusted basis — which excludes expenses related to the wind-down of Victory Motorcycles and inventory step-up costs from the integration of Transamerican Auto Parts (TAP) — net income increased 41% to $69 million, or $1.06 per diluted share. Both the top and bottom lines outpaced most investors’ expectations for adjusted earnings of $0.88 per share on revenue of $1.21 billion. Parts, garments, and accessories (PG&A) revenue, excluding aftermarket segment sales, increased 5% driven by accessories and apparel. International sales (including PG&A) grew 27% (or 16% at constant currency) to $211 million.

ORV and snowmobile sales grew 15% year over year to $833 million, with strength across all categories. ORV wholegood sales grew 17%, driven by Ranger, RZR, and ATV shipments. Polaris North American ORV retail-unit sales grew in the mid-single-digit percent range, setting a company record.
Snowmobile wholegood sales grew 28% to $18 million, driven by strong international sales. But Polaris’ snowmobile retail sales declined in the high-single-digit percent range; Polaris lost market share during the quarter and season, partly because of a lack of snow in regions where it has the highest share relative to competitors.

Polaris CEO Scott Wine stated:

“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. Through the tireless efforts of our team and the efficacy of various quality and productivity initiatives, we overcame commodity and freight inflation and product mix pressures in the first quarter to maintain our gross margin year over year, while leveraging operating expenses even as we continue to invest heavily in research and development.” Wine added that Polaris’ production flow “improved steadily throughout the quarter,” while inventory remains healthy.

12 Responses to “Great Polaris First-Quarter 2018”


  1. 1 Chief Waldo Apr 26th, 2018 at 9:11 am

    Double digit declines for the Slingshot. Maybe they’ll give that ugly POS the Victory treatment… the sooner the better.

  2. 2 Boomer Apr 26th, 2018 at 9:39 am

    Even better Chief; maybe they will drop the Slingshot and bring back the amazing Victory!

  3. 3 Jim Tom Stimpson Apr 26th, 2018 at 1:02 pm

    I like Boomer’s idea.

  4. 4 ozzie21 Apr 26th, 2018 at 9:21 pm

    Yaaaaa..Dump the Slingshot & bring back the Victory. I was actually considering a Victory then they stopped production. I don’t care for the Indian styling. Now I’m stuck with my turbo FLHX. But…… I did pick up a Ducati XDS & I’m glad I did. Amazing bike with technology HD will never ever be able to catch up to. Now I need a good reliable bagger….Polaris???

  5. 5 Chief Waldo Apr 26th, 2018 at 9:47 pm

    Boomer, in my humble opinion, the only amazing Victory ever made was the Vision. A true, world class, touring bike. (Of course, having owned one, I’m a bit biased…)

  6. 6 Nomadmax Apr 27th, 2018 at 4:43 am

    If they’re selling as many Indians as they’re letting on; how come I don’t see any on the road?

  7. 7 Woody's Apr 27th, 2018 at 7:22 am

    They aren’t releasing unit numbers so how would we know to complain about the unit numbers? Simply put, the new Indian is a young company with a small market share, so it is impossible to make any real comparisons between them and a mature company with a market share that has been staying roughly the same except for recent brand dilutions. If I open a brand new car lot and sell one car the first week and 10 the next, the smart thing would not be to say, “I only sold 11 cars” when I could give a percentage of sales increase over week one, and look like the hottest dealer on the planet.

  8. 8 morpion Apr 29th, 2018 at 1:19 pm

    NOMADMAX,,you,re right,,,the indians ,,were are they,,in their mind maybe,,,

  9. 9 joe Apr 30th, 2018 at 10:28 am

    They’ll shit can Slingshot and then Indian just like they did Victory. I wouldn’t trust these guys with my hard earned money. Resale value on both are horrendous.

  10. 10 EVOFAN Apr 30th, 2018 at 2:08 pm

    I live in So Cal and rarely see a newer Polaris Indian. I still see a few Gilroy Indians around though.

  11. 11 SteadyJ May 2nd, 2018 at 5:43 pm

    I’ve owned a Vic, Indian (totaled 2015) and frtx RG. Loved all of them. Want another Vic tho before they’re a distant memory. My friend has a slingshot and loves it. Me..not so much. Would love to get a used Vision & see if they really stand up to all the hype.

  12. 12 SteadyJ May 2nd, 2018 at 5:48 pm

    BTW I was in Canton Ohio over the weekend and I saw a lot of Victory’s. It was like mid to upper 40’s and there were more bikes out than I expected. JSN. IDK if there was a swap meet or show but I was surprised

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