For some US-based manufacturers, 2024 has been a rather lackluster year in terms of sales figures. In the first quarter of the year, Harley-Davidson reported flat sales with a mild decline in revenue.
This time around, for Q2, it’s Polaris that’s suffering, as it reported a significant decline in sales and revenues versus the same period last year. In total, Polaris still sold about $1.9 billion worth of powersports machinery, but this figure was down 12 percent versus the same period in 2023. This resulted in quite a severely watered-down $1.21 earnings per share, down a whopping 48 percent versus 2023.
According to Polaris’ report, its Q2 sales were affected by elevated interest rates, inflation, and generally more cautious spending behavior from both dealers and consumers. Furthermore, the report stated that powersports retail sales were down by a total of eight percent versus 2023, particularly in terms of motorcycles and PWCs.
Meanwhile, ORVs saw a four-percent sales decline.
Despite its seemingly challenging situation, Polaris’ CEO Mike Speetzen remains optimistic that the company will maintain a foothold as a leader in the powersports industry. “Although it might take longer than originally anticipated, I am confident in our long-term strategy and the Polaris team's ability to emerge stronger and well-positioned to drive profitable growth, deliver value to shareholders, and capitalize on our position as the powersports industry leader,” he said.
Interestingly, or perhaps, relatedly, on the same day that Polaris released its financial report, it was also announced that Steve Menneto had been appointed as the new CEO of Malibu Boats, Inc, while also being given a seat on the board of directors. It’s important to note here that Minneto spent a huge chunk of his professional life at Polaris, serving as the President of its Off-Road Vehicle division at the time of his departure.
The announcement was made on July 23, 2024, the same day Polaris published its financial report for Q2. But Menneto was set to take on the role officially on August 5, 2024.
In the midst of all this, however, it’s important to note that the goings on at Polaris aren’t exactly reflective of what’s happening in the industry as a whole.
If we look at other big players in the powersports industry, we’ll notice that some companies, such as Royal Enfield, are breaking sales records and launching new models left and right.
In a similar vein, up-and-coming powersports players have seen massive growth, too. Case in point: Segway Powersports with its dizzying 300-percent sales growth in the first quarter of 2024.
