Larysa Pashkevich
Polaris (NYSE:PII) reported sales fell 20% year-over-year in Q1 to $1.74B. Sales were down due to lower volume, which was only partially offset by a positive vehicle selling mix. A low level of snow during the quarter was cited as a challenge in churning up sales.
“Our sales results for the first quarter were in line with our expectations and adjusted EPS came in above plan. With our competitive product portfolio, we gained share in ORV, motorcycles and Marine, and the recent launches in our best-selling full-size RANGER and Indian Scout lineups reflect our strategic focus on Rider-Driven Innovation,” noted CEO Mike Speetzen.
Adjusted gross profit margin tightened 248 basis points from a year ago to 19.0% of sales. Margin pressures during the quarter included net prices and higher warranty expenses. Adjusted EBITDA for the quarter was $110M vs. $238M a year ago. EPS fell 89% year-over-year to $0.23, but came in ahead of the consensus estimate of $0.09.
Looking ahead, Polaris pointed to early excitement around the Indian Scout and the new Ranger lineup. The company is actively working with dealers to help manage inventory. Polaris (PII) reaffirmed prior guidance for FY24. The company expects FY24 revenue to be down 5% to 7% and sees EPS down 10% to 15% to $7.79 to $8.24vs. $7.92 consensus. “Looking forward in the year, our focus remains on sound execution in spite of the uncertain macro environment, from managing dealer inventory and delivering for customers, to making continued progress with operational improvements and driving profitable growth,” stated CEO Mike Speetzen.
Shares of Polaris (PII) rose 2.04% in premarket trading on very light volume.
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