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U.S. May unit retail findings reported by analyst

Wells Fargo Securities analyst Tim Conder recently met with industry floorplan financing contacts in the powersports industry, and reveals his findings in a research note provided to Powersports Business.

Conder reports that when looking at core powersports (motorcycle/ORV), collective U.S. May unit retail is “likely flat/low-single-digits (LSD) percentage increase with ongoing motorcycle softness. Collective channel inventories remain healthy with 4-5 year low aging and improving delinquencies. Early June appears LSD percentage growth. May YTD retail +DD% in dollars and continues to outpace new retail. Ag is likely an increasing headwind, along with ongoing impact from elevated precip and tariff concerns. We remain cautiously optimistic for steady modest growth given positive economic/consumer fundamentals.”

Here’s Conder’s analysis of the segments:

“Motorcycle. May unit retail (LSD%) inclusive of BRP’s new Ryker launch vs. a moderate +3.7% comp, with ongoing softness in Heavyweight vs. a +2.1% comp. May/YTD core trends ex-Ryker likely (MSD%)/flat. Canada saw similar trends in May.

“ATV. May unit retail flat vs. a moderate +3.8% comp and +LSD% YTD. Canada seeing similar May/YTD trends.

“SxS. No good read on May retail, but likely flat/+LSD% given weather and Ag related challenges.”

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