Polaris Sees an Across-the-Board Sales Surge in Q4


Consumers continued hunting for outdoor activities during the pandemic, sending sales of Polaris Industries(NYSE:PII) powersport vehicles soaring in the fourth quarter.

The company released its quarterly results today, and every category of Polaris’ business saw an increase, with almost every one experiencing double-digit growth. That resulted in revenue of $2.16 billion, with adjusted profits up 83% year over year to $3.34 per share.

Top- and bottom-line results beat analyst forecasts of revenue of $2.1 billion and profits of $2.85 per share.

Polaris Industries side-by-side off-road vehicle

A Polaris side-by-side off-road vehicle. Image source: Polaris Industries.

Polaris reported that sales of off-road vehicles, motorcycles, and boats all surged by 20% or more, while utility vehicles were up a robust 18%. Its previously lagging aftermarket segment also rose 8%, and snowmobiles were 4% higher year over year.

Off-road vehicles account for 68% of total sales, and they jumped 29% for the period as both ATVs and side-by-sides enjoyed strong demand.

Similarly, Polaris saw Indian Motorcycle sales continue to climb even though the market for mid- to heavyweight bikes declined. It reported North American consumer retail sales were up by a low 30% rate, while the industry was down by mid-single-digit percentages.

Perhaps more surprising was the jump in sales recorded by the three-wheeled Slingshot motorcycle, which helped drive overall segment sales higher by 23%. Parts, garments, and accessories also factored into the increase.

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The aftermarket business was helped when its struggling Jeep and truck parts business, Transamerican Auto Parts (TAP), saw its sales climb 1%. Polaris’ other aftermarket brands surged 45%, but TAP represents more than three-quarters of the division total.

And having narrowed the focus of its boat business to pontoon boats, the segment saw sales increase 20% year over year.

The results indicate consumers are still looking for outdoor recreation and are turning to Polaris.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

View more information: https://www.fool.com/investing/2021/01/26/polaris-sees-an-across-the-board-sales-surge-in-q4/

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