Polaris Industries reported $231.3 million in revenue from its motorcycle segment over the second quarter of 2016, a 23% increase from the previous year. Polaris says sales increased for both Indian and Victory as well as for the Slingshot over the quarter.
Sales from motorcycles alone increased by 26% while an increased selection resulted in a 6% increase in parts, garments and accessory sales. Gross profit increased 63% to $39.8 million over the second quarter compared to $24.5 million in the same period of 2015.
Overall demand for Polaris’ motorcycles were up by the mid-teens over the second quarter, and the company was able to keep up with the pace thanks to improved paint capacity at its manufacturing facility in Spirit Lake, Iowa.
Despite the positive results, Polaris lowered its forecast for the year-end results, expecting a weaker second half. While total sales revenue was up, Polaris notes the average selling price per motorcycle was actually down 1%.
While Polaris’ motorcycle division is growing, the news was less positive for its off-road vehicle and snowmobile operations which forms the bulk of the company’s business. Off-road vehicle and snowmobile revenue totaled $808.5 million over the second quarter, a 6% decrease from last year.
Overall, Polaris Industries reported a net income of $71.2 million in the second quarter, compared to $100.9 million in the same quarter of 2015.