Can-Am ‘crushing it at retail,’ analyst reports

BMO Capital Markets analyst Gerrick Johnson, in a research note provided to Powersports Business titled ‘Can-Am Crushing It at Retail; Increasing Estimates,’ reports of a BRP “robust retail performance in the current quarter, despite considerable weather headwinds.”

Johnson also reports that “based on preliminary registration data as well as our own channel checks, BRP continues to leverage its innovative new products to grab significant market share in almost all categories it competes in, particularly in off-road vehicles (ORV) with the Can-Am brand. We estimate North American ORV retail is up +25% in the quarter, compared to an overall market that we think is growing low single digits percent.”

In addition, Johnson writes that “BRP’s retail performance has been incredibly strong so far this year. We estimate that BRP’s North American ORV sales are up +25% in the current quarter, massively outperforming the broader industry, which we estimate is up about +3.5%. More specifically, we think side-by-side (SxS) retail is up +40% and ATVs are up +10%, against an estimate of +7% and -1% for the industry, respectively.

“Our channel checks have also been very positive. BRP’s brands consistently score well in our checks, with very positive commentary from dealers. BRP’s Can-Am, Ski-Doo, and Sea-Doo brands all performed well in our 1Q18 BMO/Powersports Business Dealer Survey (published 4/9/18). Though, we do think weather conditions may have delayed some Sea-Doo sales.

“BRP is benefiting from new products capturing white space opportunities. BRP’s steady cadence of new product introductions, culminating with the recent launch of the Can-Am Maverick Trail, has helped it gain not only new dealer locations, but also increase dealer selling space at existing locations.”

Gerrick and PSB will provide report on the Q2 retail performance with the launch of the Q2 Dealer Survey at the end of June.

— Dave McMahon, editor in chief, Powersports Business