DESTINATION POWERSPORTS, the Dealer LAB powersports dealership in Punta Gorda, Fla., reported slightly increased earnings on lower sales for the month of April compared to the same period last year.
Meanwhile, negotiations continue to inch forward on the purchase of a new facility for the dealership, which could provide a huge boost to the operation. Owner Bill Shenk and his partner are seeking to acquire a larger facility on a more extensive piece of land in a much better location in Punta Gorda.
The closing on this property could come as soon as early summer.
For April, the dealership reported improved earnings of $14,569 on decreased sales of $463,725, compared to earnings of $12,269 on total revenues of $508,961. Retail earnings for the month were nearly flat due to a loss of $2,893 in April 2012 from wholesale operations.
Year-to-date the dealership has earned $125,713 on total revenues of $2,186,871, up 59 percent from last year’s earnings of $79,045 on revenues of $1,911,412. Gross profit for the year improved to $552,966 from $457,921 last year.
Unit sales for the month were off by two, dropping from 49 to 47 units. Unit sales for the four months of 2013 were 215, up from 204 for the same period last year. However, gross profit from unit sales increased from $50,652 in April 2012 to $54,558 this April, a gain of 7.7 percent.
The drop in unit sales for April may have been due, at least in part, to poor weather. “I’m just not sure about this,” Shenk tells Dealernews. “I have asked the Suzuki and Kawasaki reps and have not gotten any information from them.”
According to Florida state motorcycle registrations reported by Florida dealers to Florida addresses for the month of April, this year vs. last year, the slowdown continues in Florida for the brands the dealership represents. Sales for those brands were off in April 2013 vs. 2012 by 50 percent, 654 units vs. 1,371 units last April.
“All brands listed on the state report seem to have had the same drop in sales,” Shenk says. “This is new and used registrations, so it seems to be a lifestyle issue, not a brand issue, and the weather has been a bit cooler with more wind than last year. (Continued)