Polaris Industries topped the $1 billion mark in sales for the first time in company history during the third quarter. Total sales revenue totaled $1.1 billion in the quarter, up 25.3% from $879.9 million reported in the same quarter last year.
“Our record third quarter results reflect both the ongoing demand for our existing products and the potential contained within the initial shipments of our model year 2014 vehicles, the largest new product introduction in the company’s history,” says Scott Wine, chief executive officer of Polaris Industries. “In the third quarter, we launched more new vehicles than in any previous model year, led by the much anticipated debut of Indian Motorcycles along with several innovative variants of RANGERS, RZRs and Victory motorcycles. Additionally, to complement and enhance our consumers’ experience with these vehicles our PG&A business introduced over 300 new model year 2014 accessories plus an expanded apparel line-up.”
Most of the sales increase came from Polaris’ off-road vehicle, snowmobile, small electric vehicle and parts and accessories divisions. The motorcycle division – comprised of the Victory and Indian brands – was the only one to report a decrease in sales, with revenue dropping 5.7% to $49.4 million from $52.4 million. The slight drop is more a result of accounting than weak demand however. While Polaris’ international motorcycle sales were down, much of the decrease stems from a recalibration in the Victory inventory levels as the company adopts a new Retail Flow Management order-taking process.
North American Victory unit sales were actually up 30% from a year ago, while Indian Motorcycles unveiled its first new products under the Polaris banner during the quarter.
Overall, Polaris reported a net income of $113.1 million over the third quarter, compared to just $94.3 million in the same quarter last year.
For the rest of 2013, Polaris forecasts a year-over-year increase of 15-20% from its motorcycle division and an overall increase in net income of 20-22%.
“While the new model year 2014 vehicles and accessories are just now arriving at dealers in meaningful quantities, the initial feedback has been extremely positive from consumers to the trade magazines,” says Wine. “To receive such accolades is always gratifying, but we realize that we must remain focused on achieving the full market potential of these recently released new products while continuing to develop the next wave of industry leading products.”