Polaris Industries, parent company to Indian Motorcycles and Slingshot, reports a 21% growth in sales for the second quarter 2017 overall, equaling $1,364.9 million.
The motorcycle segment, with Parts, Garments and Accessories sales included, reached $198 million for Q2, a 13% decrease compared to the same period in 2016. That figure includes $6.2 million in Victory wholegood, accessory and apparel sales, a division that brought in $54 million in Q2 2016 but which began winding down in January 2017.
According to Polaris, the end of Victory is expected to bolster the profitability of Polaris and its remaining motorcycle business.
Indian Motorcycles retail sales jumped 17% for the quarter, but with weaker Slingshot sales and a tough market in Q2, Polaris marked $21.1 million gross profit in motorcycle segment sales compared to $38.9 million in Q2 2016.
“Performance improved in many parts of our business during the quarter, particularly within our international and PG&A businesses. The powersports industry remained very competitive and headwinds persist, but we were encouraged by the return to growth in our Side-by-Side business and continued strength and aggressive share gains for Indian Motorcycles. In a weak motorcycle industry, Indian continues to demonstrate how a complementary combination of exciting new bikes, strong dealer execution and overall brand momentum can prevail. Dealer engagement is a corporate priority and from profitability to delivery and communications, the consistent progress we are making is augmenting our retail results. We still have a lot of work to do, but we are seeing results from the strong and sustainable improvements we are making to the fundamentals of our business, as we establish the foundation of a renewed growth platform,” said Scott Wine, Chairman and Chief Executive Officer of Polaris Industries, in a company press release.
“I am proud of the hard work and progress our Polaris team made in the first half of 2017, and our commitment to regaining our winning momentum in powersports is deep and strong. From significant new innovations in performance, reliability, and rider safety, to upgrading our plants and supply chain, we have made substantial investments both in enhancing our safety and quality practices, and in research and development to accelerate the cadence of our new product introductions. The fruits of this labor will be on display next week, when we unveil our exciting new model year ORVs and Motorcycles. These vehicles will demonstrate our capability to deliver the innovation and quality expected from the leader in Powersports, as well as improved results and enhanced shareholder value.”