MEDINA, Minn. - Polaris sales crossed the $1 billion mark in the third quarter ended Sept. 30 on the strength of gains in off-road vehicles, offsetting a 6 percent slide in motorcycle sales as dealers work to adjust inventory levels.
Sales for the third quarter 2013 totaled a record $1,102.6 million, which represents an increase of 25 percent over last year's third quarter sales of $879.9 million.
"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,” said Polaris Industries Chairman and CEO Scott Wine.
“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," Wine said. "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 lineup. 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."
Off-road vehicle sales increased 23 percent in the quarter from the same quarter 2012 to $702 million. The increase reflects continued strong demand and market share gains for ATVs and side-by-side vehicles, including a number of all-new model year 2014 vehicles introduced in the third quarter.
Polaris North American ORV retail sales were up a low double-digits percent from the third quarter last year; both side-by-side vehicles and ATVs grew in the double digits percent range during the quarter, the company said. North American ORV industry retail sales also grew low double-digits percent during the third quarter.
As expected, North American ORV dealer inventories were up by a mid-teens percentage from the third quarter of 2012, primarily to support new model year 2014 ORV product segments introduced in July.
The company's International ORV sales to customers outside North America increased 20 percent in the 2013 third quarter primarily through continued market share gains, despite the overall European economy remaining weak.
Snowmobile sales were up 25 percent to $143.6 million for the quarter as compared to $114.9 million for the same quarter of 2012. The company attributes the boost to a higher number of snowmobiles shipped and a more profitable mix of snowmobiles sold in the 2013 third quarter. Sales of snowmobiles outside of North America, principally the Scandinavian region and Russia, increased 11 percent in the quarter compared to a year ago.
Sales for the Motorcycles division, which includes Victory and Indian motorcycles, decreased 6 percent to $49.4 million in the third quarter compared to the same period last year. The decrease owes to Victory dealers continuing to calibrate their inventory levels under the new retail flow management order-taking process, which closely ties dealer shipments to retail sales, and weaker foreign motorcycle sales, partially offset by a limited number of model year 2014 Indian motorcycles that began shipping late in the quarter.
Victory North American consumer sales were strong for the quarter, increasing more than 30 percent compared to a year ago. The Indian Motorcycle relaunch during the 2013 third quarter rolled out three all-new 2014 Indian Chief models: the Chief Classic, Chief Vintage, and the Chieftain. The company said response from the motorcycle press, dealers and consumers has been very strong.
North American motorcycle dealer inventory increased slightly over 2012 levels, due to an increase in the Victory dealer count and initial shipments of Indian motorcycles. (continued)