According to a research note provided to Powersports Business by BMO Capital Markets analyst Gerrick Johnson, the Polaris first-quarter earnings announcement brought with it some positive April news.
Johnson writes that “Last week Polaris (PII) reported disappointing 1Q results, but caught many off guard by announcing that off-road vehicle retail sales were up +15% in April. This was a surprise given the state of the economy, but it reinforces our belief that outdoor recreation is a preferred family-based social distancing activity. Given our economic concerns, we do not expect this surge in sales to be sustainable. And with the full impact of the pandemic still highly uncertain, we expect consumer discretionary stocks, like PII, will be out of favor.”