Although retail sales were down 8% compared to 2021, Polaris still posted a profit in Q3. Sales were $2,341 million, up 32% over last year, driven by higher volume, as well strong performances in the motorcycle and the marine markets. Gross profit margin increased 26 basis points to 23.9. Adjusted gross profit margin of 23.9% increased 15 basis points driven by higher pricing.
“We maintained our focus on executing for customers, dealers and shareholders,” says Polaris CEO Mike Speetzen. “Our results were bolstered by easing supply chain headwinds that enabled us to increase ship volumes and take advantage of our strong pricing strategy, resulting in record sales in the quarter.”
The quarter ending September 30, 2022 saw North America sales of $2,069 million represented 88% of total company sales, an increase of 35% from $1,532 million in 2021. International sales of $272 million represented 12% of total company sales and increased 10% versus the third quarter in 2021. Sales in the third quarter of 2022 were propelled by accelerated shipments towards the latter part of the quarter, as well as higher pricing and favorable product mix.”
Off-Road segment results were primarily driven by these factors:
• Sales were driven by accelerated shipment volume, higher pricing and favorable product mix.
• Parts, Garments and Accessories (PG&A) sales increased 18%.
• Gross profit margin performance was driven by favorable pricing and higher volumes.
• Polaris North America ORV unit retail sales were down high-single digits percent. Estimated North American ORV unit retail sales were up low-single digits.
“We believe we are well positioned to meet our commitments for the year, while our team remains highly vigilant and agile should indicators point to shifts in consumer behavior or new market dynamics,” adds Speetzen. “Looking forward, our diverse portfolio, commitment to innovation, strong financial position and track record of successfully navigating in various operating environments gives me incredible confidence in Polaris’ ability to deliver long-term profitable growth and shareholder value.”