So weird? One would think that snowcheck sales would have been booming with the low, low starting price of a ‘26 sled at $14,000 not including destination and set up fees. Polaris pulls out recession playbook as company posts loss amid ATV sales declineThe company withdrew financial guidance for the remainder of the year, citing uncertainty in the economy and in trade. By Patrick Kennedy The Minnesota Star Tribune APRIL 29, 2025 AT 4:02PM Sales of Polaris vehicles, shown here at Tousley Motorsports & Marine in White Bear Lake, declined in the first quarter, leading to a loss for the company. (Alex Kormann/The Minnesota Star Tribune) Comment Gift Share Listen Polaris executives said the powersports industry is operating with a recession playbook after losing $66.8 million in the first three months of the year and watching sales slide 12% as the powersports industry continues to slow. The company expects sales to decrease in the second quarter as well, landing between $1.6 billion and $1.8 billion, down from $1.96 billion during the same period last year. At the same time, executives said Tuesday that it would have $260 million to $300 million in net new tariff impacts if President Donald Trump’s plans are not revised. “Results from this quarter were in line with our expectations, as we continued to prioritize supporting our dealer network and managing a prolonged industry downturn,” said Mike Speetzen, chief executive of Polaris, in a news release. “While consumer uncertainty and a dynamic tariff environment are near-term hurdles, we are thoughtfully navigating these challenges.” Speetzen said during the earnings call that executives have both short- and long-term plans. The long-term actions would have more impact, but the company needs more certainty on tariffs and other economic factors before making big changes. Trump plans for levies up to 25% on goods from Mexico, where Polaris has a major plant, a baseline 10% tariff on goods from most countries, and 145% levy on many goods from China. Reports on Tuesday indicated Trump may roll back automotive tariffs, which Polaris would benefit from. But Polaris said under the current uncertainty it could not give financial guidance for the full year. Sales for the first three months this year were down to $1.5 billion, and have now declined for seven consecutive quarters. The slide was across its segments, from ATVs to motorcycles to boats. ADVERTISEMENT ADVERTISEMENT The results are across the powersports industry, which has been in an extended down cycle. After a pandemic bump, the outdoor vehicle segments have been in recession as interest rates and inflation have risen and consumer confidence has sunk. The off-road industry has seen four consecutive quarters of contraction, with the on-road and marine industries experiencing longer downturns, executives pointed out in a March investment presentation. Speetzen and Chief Financial Officer Bob Mack told analysts on the earnings call Tuesday that Polaris was taking steps to preserve cash and liquidity. Related Coverage BUSINESS Deals on Polaris vehicles grow as dealerships face high inventories Polaris has already pulled back on the number of vehicles produced and delivered to help dealerships lower their inventories. This contributed to the loss, as well as increased promotional pricing and sales of lower-margin products. Polaris competitors have taken drastic actions. Textron, which owned Arctic Cat in Thief River Falls, Minn., had ceased production and sold the unit to a group of investors earlier this month. Wisconsin-based Harley-Davidson is going through a major management shake-up. Polaris’ first-quarter sales were down the most in the On-Road segment, which includes Indian motorcycles and the Slingshot three-wheel vehicle. Segment sales were down 20%, but Indian continued to do better than competitors. Most Read TWIN CITIES SUBURBS Minnesota man clicks email link, watches Bitcoin fortune drain away TWIN CITIES Judge Peter Cahill, who presided over Chauvin case, speaks about the trial watched by millions MINNEAPOLIS Minneapolis was blindsided by Graco’s decision to leave. What’s next for its riverfront campus? AGRICULTURE John Deere buys St. Paul precision ag company SenteraADVERTISEMENT Indian’s North American retail sales units were down more than 10%, but other brands in its category were down by about 25%. Polaris lost $1.17 a share in the first quarter, compared with a 7-cent gain in the same period a year ago. Adjusted for restructuring costs, product wind-downs, litigation costs and other one-time expenses, the income statement still showed adjusted loss of 90 cents a share, when the company’s adjusted earnings last year were 23 cents a share. Despite the losses, Polaris largely met expectations of analysts, and its stock closed up 9 cents at $33.83.