MINNEAPOLIS, Minn. - Arctic Cat’s net sales grew about 9 percent for the fiscal 2014 first quarter ending June 30 to a record $120.8 million, versus net sales of $111.3 million posted in the same quarter last year.
“We are pleased to begin the year with a strong first quarter, with increased revenues across all product lines,” said chairman and CEO Claude Jordan. “Contributing to the quarter was continued growth in our ATV/side-by-side business, which rose 5 percent on top of a 93 percent sales increase in the same period last year. In addition, we benefited from late spring snowfall in North America that helped snowmobile parts sales.
"For the 2014 first quarter, EPS improvement was primarily due to higher sales volumes, a favorable product mix, and our continued success in enhancing operating efficiency and lowering our cost structure. As a result, Arctic Cat delivered record 2014 first-quarter sales and profits,” Jordan noted.
Sales of ATVs and SSVs rose 5 percent to $76.3 million, up from $73 million in the same period last year, primarily due to strong orders for the Wildcat X (see image) and the four-seat Wildcat 4 pure sport SSVs, which are the company’s two newest Wildcat offerings.
“We achieved this growth despite economic headwinds in our European business and a tough year-over-year comparison,” Jordan said. “With the new products that we will launch in August 2013, we continue to expect our ATV/side-by-side business to grow 25 percent to 29 percent this fiscal year.”
The company announced it will begin shipping a 50-inch wide, trail-legal Wildcat in late fiscal 2014. With a narrower stance, the 50-inch Wildcat will allow riders access to authorized ATV trails, making it a versatile option for consumers, the company said.
Arctic Cat anticipates that its sales in this product line will exceed 50 percent of total company sales for the fiscal 2014 full year. (continued)