Company expecting overall revenue growth for its current fiscal year of 5-7 percent
Snowmobile sales were up 224 percent to $9.4 million in what is historically a seasonally low quarter for shipments. Company President Bennett Morgan says Polaris dealerships’ season-ending inventories are down 40 percent compared to last year and are at a 10-year low. Morgan says he believes North American snowmobile industry retail sales grew in the low single digits in terms of percentage growth this year over last year. “It’s the first time in a decade we’ve seen industry growth,” he said of the snowmobile market. Morgan said Polaris “lost a small amount of market share” for the season “but we did re-establish ourselves as a clear No. 2 in market share.”
ATV revenue was up 19 percent compared to the year-ago period thanks primarily to growing side-by-side and international sales. (See pg. 20 for related story.)
Victory sales were up 3 percent over a year ago to $27.3 million. Morgan says Polaris dealers have reported good sale and deposit activities on the new luxury touring bike, the Vision. However, the company is watching its dealer inventory levels on cruisers closely as March was a weaker than expected month. Morgan says company officials expect a flat year for Victory, with an increase in Vision shipments but a decrease for cruisers.
PG&A sales rose by 33 percent compared to a year ago to more than $87.3 million. The sales increase was attributed to the stronger-than-expected snowmobile season and continued success with the side-by-side category.
Polaris Industries reported a record first quarter in revenue, with sales growth in each of its product lines.
Polaris finished the quarter, which ended March 31, with $388.7 million in sales, a 22 percent increase over the prior-year period.
The company reported the following revenue increases:
Thanks in part to those increases, Polaris officials are now expecting a full year sales growth of 5-7 percent for 2008 vs. the prior year.
“Our growth businesses continue to deliver significant growth, led by the continued strength in our side-by-side category and improving momentum in our international business due to both market improvement and market share gains,” Polaris CEO Tom Tiller said in a conference call with stock analysts. psb