Polaris first quarter 2022 earnings saw relatively flat earnings. They did see an increase in snowmobiles, commercial & government, and defense but that growth was partially offset by lower ORV sales.
Off-Road results were driven by the following
- Sales were driven by growth in snowmobiles, commercial & government and defense, as well as robust pricing actions on new and pre-sold orders. This growth was partially offset by lower ORV sales.
- Parts, Garments, and Accessories (PG&A) sales increased eight percent.
- Gross profit margin performance was primarily driven by supply chain constraints and higher input costs, partially offset by increased pricing and lower promotional costs.
- Polaris North America ORV unit retail sales were down high-twenties percent. Estimated North American industry ORV unit retail sales were down high-teen percent. Polaris North America snowmobile unit retail sales for the 2021-2022 season-ending March 31, 2022, were down approximately 15 percent with the industry down mid-single digits percent.
On-road results were driven by the following
- Sales were impacted by lower shipments driven by supply chain challenges, despite strong demand, pricing, and low dealer inventory levels.
- PG&A sales increased 19 percent.
- Gross profit margin performance was driven primarily by favorable product mix and lower promotion costs, offsetting higher input costs driven by supply chain constraints.
- North America unit retail sales for Indian Motorcycle were down approximately 30 percent. North America unit retail sales for the comparable motorcycle industry were down almost ten percent.
Marine results were driven by the following
- Sales results were driven by a favorable mix and pricing.
- Gross profit margin performance was flat with increased pricing offset by higher input costs related to supply chain constraints.
Aftermarket results were driven by the following
- The five percent decrease in segment sales was driven by Transamerican Auto Parts sales, which decreased nine percent from $193 million to $175 million in the first quarter of 2022. Powersports Aftermarket sales increased 16 percent.
- Gross profit margin performance declined largely driven by supply chain challenges and inflationary pressures.
It looks like one of the biggest problems with the Polaris first quarter 2022 earnings was having a huge supply change issue. Like most companies, Polaris has not been spared the issue of getting parts. Enem with that being said Polaris still expects to see an increase of 12 to 15 percent over 2021.
ABOUT POLARIS
As the global leader in powersports, Polaris Inc. (NYSE: PII) pioneers product breakthroughs and enriching experiences and services that have invited people to discover the joy of being outdoors since our founding in 1954. With annual 2021 sales of $8.2 billion, Polaris’ high-quality product line-up includes the Polaris RANGER®, RZR® and Polaris GENERAL™ side-by-side off-road vehicles; Sportsman® all-terrain off-road vehicles; military and commercial off-road vehicles; snowmobiles; Indian Motorcycle® mid-size and heavyweight motorcycles; Slingshot® moto-roadsters; Aixam quadricycles; Goupil electric vehicles; and pontoon and deck boats, including industry-leading Bennington pontoons. Polaris enhances the riding experience with parts, garments, and accessories, and an aftermarket portfolio, that includes Transamerican Auto Parts. Proudly headquartered in Minnesota, Polaris serves more than 100 countries across the globe. www.polaris.com
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