Despite the pandemic, sales are up 10% for Polaris in 2020. Key sales drivers of North American retail sales were OHV, motorcycles and snow machines. Boat retail sales were also strong during the quarter, resulting in a 15% overall increase compared to Q3 2019. According to their quarterly earnings report, Polaris posted sales of $1,955 million, up from $1,772 million for the third quarter of 2019.
The Company reported third quarter 2020 net income of $167 million, or $2.66 per diluted share, compared with net income of $88 million, or $1.42 per diluted share, at this time last year. Adjusted net income for the quarter ended September 30, 2020 was $179 million, or $2.85 per diluted share compared to $104 million in the pre-pandemic 2019 third quarter.
“Our continued strength in the third quarter reflects the broad-based consumer demand for our industry leading powersports products, and tremendous execution by our Polaris team and dealers,” noted Scott Wine, Chairman and Chief Executive Officer of Polaris Inc. “Their focus and determination enabled Polaris to generate double-digit sales increases in ORV, Motorcycles and Boats, which were somewhat limited by supply chain capacity constraints. I am extremely proud of the diligent and efficient efforts of our team to mitigate these supplier disruptions and drive a three-year high in quarterly gross profit margins.”
Gross profit increased 22% to $535 million for the third quarter of 2020 from $437 million in the third quarter of 2019. Reported gross profit margin was 27.3% of sales for the third quarter of 2020, up 271 basis points compared to 24.6% of sales for the third quarter of 2019. The improvement in gross profits was primarily driven by positive product mix and lower promotional costs incurred during the quarter.
Wine adds that the outlook for 2020-2021 remains positive, “We are realizing tremendous progress from our strategic investments in supply chain and digital transformation, electrification, and breakthrough product development programs. I am very optimistic about the future growth and profitability prospects for Polaris and our stakeholders.”
Given the continued strong retail environment, the Company is raising its sales and adjusted earnings guidance for the full year 2020. Sales are now expected to be in the range of $6.925 billion to $7.0 billion, up 2%-3%.