Arctic Cat announced ATV sales have been lower than anticipated in revising its quarter and full year financial outlooks Jan. 4.
“After reporting seven consecutive years of record sales, we are disappointed with these results and the sluggish ATV environment,” said Christopher Twomey, Arctic Cat chairman and CEO, in a press release. “Our preliminary third-quarter results indicate that while retail sales of Arctic Cat ATVs were in line with the overall ATV marketplace, retail sales of ATVs industry-wide continued a year-long decline. Sales of Arctic Cat’s snowmobiles remain on plan, while sales of our snow-related parts, garments and accessories are above plan, due to December snow accumulations in key regions.”
The industry-wide retail ATV sales slowdown has affected all segments of the market except the large-displacement engine segment, which has shown modest gains, the company said in the release. Arctic Cat’s results mirror these trends, showing lower sales of ATVs with engines under 650ccs, but continued demand for the company’s large-displacement ATVs and Prowler UTVs.
In light of the current overall industry environment, Arctic Cat says it’s taking steps to produce fewer ATV units in its March quarter. The company plans to cut its annual ATV production by approximately 10 percent during its fiscal fourth quarter ending March 31, 2008.
“This action is in keeping with our aim to vigilantly align production and inventory with consumer demand,” Twomey said.