Second quarter dealer checks by Wells Fargo Securities show Polaris maintaining strong sales at the retail level, according to a research note provided to Powersports Business by analyst Tim Conder.
Polaris side-by-side sales are up in the mid-twenties percent compared to the second quarter of 2011, with Polaris ATV sales up mid-upper single digits, and Victory motorcycle sales seeing a 15-20 percent sales increase over the same time period, Conder reports.
“We believe Polaris will see only modestly higher model-year 2013 … competition, primarily from Can-Am. However, we also feel Polaris model-year 2013 product introductions will be substantial. MVP program continues to be a major differentiating competitive factor for Polaris given dealers’ ability to adjust orders every two weeks and get delivery on average in approximately six weeks (goal 4-6 weeks),” Conder writes.
Regarding the side-by-side industry, which lagged behind Polaris’ growth in Q2, Condors says “we believe that U.S. industry side-by-side demand has moved from the initial rapid growth phase to a more sustainable growth/early mature state of its lifecycle.”
Conder notes that 25 percent of dealers attributed increased side-by-side sales to the Ranger, 8 percent to the RZR and 67 percent to both. Dealers mentioned the Ranger 400, 800 XP and RZR 800 most frequently as top sellers.
While Q2 snowmobile retail sales were not part of the survey, “our channel checks indicate the offseason (early March to mid-April) snow-check was up year-over-year. We believe recent ordering of 2013 snowmobile models improved due to economic conditions and strong model-year 2013 lineup offsetting some worries about another unfavorable snowfall in 2012/13 (given many regions in U.S. during 2011/12 season experienced lower than historical snow levels).”
Conder reports Polaris PG&A Q2 sales as “likely up mid/high single digits” year-over-year.