Management

  • Polaris: Takeaways from the Jan. 24 financials report, earnings call

    Wednesday, January 25, 2017 | Mary Green

    From the Polaris 2016 fourth-quarter and full-year earnings call, held on Jan. 24 with financial analysts: CEO Scott Wine and CFO Michael Speetzen on dealer margins, inventory, prospects for Indian and Slingshot…and politics.

    MARGINS
    Polaris Chairman and CEO Scott Wine said he anticipated dealer margins in 2017 to increase from 2016 levels. “The warranty cost alone gives you the benefit, but… [the] promo cost is elevated in the first half [of 2017] relative to where we were in the first half of 2016. As we get into the back half [of 2017], two things happen: one, we start to lap the high promo cost, so that stops being a headwind, and then we also start to see volumes improving slightly.

    We’re going to have to rely a little bit more on promotions than we have previously.”

    In the short-term, as Polaris focuses on quality and safety issues, “we’re going to have to rely a little bit more on promotions than we have previously,” Wine said. “We do believe that’s transitory.”

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