Positive October retail trends at dealerships: analyst

Wells Fargo Securities analyst Tim Conder provided a research note to Powersports Business following the company’s meetings with industry wholesale contacts in core powersports, marine and RV sectors.

Conder reports that powersports showed a “collective October retail up modestly. Motorcycle U.S. retail Oct/YTD –LSD%/-LSD%, with on-highway heavyweight (largest segment) still lagging –HSD-LDD%, while lower-displacement cruiser/sport up meaningfully and off-road/dual-sport +LSD-MSD%. Canada retail Oct and YTD relatively flat.

“ATV U.S. retail Oct/YTD +LSD%/-LSD% despite difficult Textron comps. Canada retail Oct and YTD –MSD-HSD%.

“SxS U.S. retail still tracking +MSD%.

“Snowmobile U.S. and Canada retail lagging last year despite promotional support on carryover inventory, but still very early in the season.

"Collective industry powersports promotions remain stable. Channel inventories healthy with aging lower yr/yr. Wholesale is outpacing retail as dealers rebuild stock (primarily ORV). Our outlook for the overall market remains constructive. For 2018, we continue to expect retail units for motorcycles –LSD%, ATVs flat, SxS +MSD%, and snowmobiles +LSD%.”

— Dave

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