Analyst provides retail insight on side-by-sides
Similar to data from CDK Lightspeed we reported on last month, July retail core powersports sales (motorcycle/ORV) is summed as follows in a research note provided to Powersports Business by Wells Fargo Securities analyst Tim Conder.
“Collective U.S. July unit retail likely +LSD-MSD% and +LSD% YTD. Channel inventories remain healthy with broad wholesale/retail balance. Aging still at 4-5 year low ~10%. Delinquencies at comfortable levels. YTD liquidations strongest in Southeast, TX, CA. Northeast weakest region.”
For the motorcycle segment, Conder reports “July unit retail +LSD% inclusive of BRP’s new Ryker vs. a -0.9% comp. We believe even the Heavyweight segment was positive in July (note easy -6.3% On-Highway comp).
“YTD industry retail flat-to-up LSD% vs. -2.2% comp, but –LSD% ex-Ryker. We believe 2019 unit retail unit could end +LSD% benefiting from Ryker and other new product introductions, but likely –LSD% in Heavyweight.
“Canada retail +HSD% July, but –LSD% YTD.
“ATV. July unit retail +MSD% vs. a moderate +4.4% comp. YTD retail +2% vs. -1.5% comp. We believe 2019 unit retail could end +LSD% all-in. Canada retail +MSD% July.
“SxS. We believe retail is still tracking +MSD% for 2019. We remain cautiously optimistic for steady modest growth led by ORVs.”
