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Polaris Snowmobiles President on pandemic accelerating snowmobile sales

Fri, December 11, 2020, 10:40 AM CST

 

 

Polaris Snowmobiles President Chris Wolf joins Yahoo Finance Live to break down why more people are buying snowmobiles during the pandemic and weigh in on the company's outlook for the new year.

Video Transcript

BRIAN SOZZI: Tis the season to get out there and buy a snowmobile because after the year we have endured, why not really go fast over some giant snowy hills? Chris Wolf is the president of Polaris Snowmobiles. And he joins us now. Chris, good to speak with you this morning. Hey, it's been warm across the US for much of the winter so far. What are you seeing in your business?

CHRIS WOLF: We are seeing really, really strong demand in our business despite what's going on with the weather. I think snowmobilers are used to having to wait a little bit some years for the snow to come. And this year turns out is no different. But long term forecasts are looking pretty good with La Nina. So we're very optimistic about all of our customers getting a chance to ride.

MYLES UDLAND: And you know Chris in thinking about the business that you've seen so far in 2020, we've talked a lot on this program about the goods over services kind of recovery. Because people can't go out and do things but they can buy things. Your snowmobiles are not necessarily impulse purchases. I mean they can be sizable investments. So it certainly seems that you have seen some of that trend where people, they are willing to spend to get a new snowmobile or their first snowmobile perhaps because they can't go travel. They can't go do the other things that they might want to do. Does that kind of track with some of the demand trends you've seen?

CHRIS WOLF: Absolutely. Very much the same with snowmobiles. It is-- our customers are very, very passionate about the sport, always kind of looking for a chance to go out and experience the newest technology. And it's really a news and technology driven industry. So our consumers are always very impressed if they've been away from the sport in terms of maybe riding an older product, and then they get a chance to experience something new typically really gets them energized. And this has just provided a great opportunity for them to do that.

JULIE HYMAN: I want to ask, you mentioned the long term and being optimistic for the snow forecast for the season. I want to look even longer term for a moment because of course, we have the issue of climate change, winter is getting warmer. And so, I wonder I mean, I don't know how you plan for that as a snowmobile company. But are you guys thinking about it? And how are you thinking about it?

CHRIS WOLF: Yes. Good question. Well what happens typically is snowmobilers are used to the idea of traveling to snow. So if you're in the Midwest or the Northeast, usually you're targeting those areas in the Northwoods or the lake-effect Snowbelt where the snow has been typically more consistent. They also have tremendous trail systems up there and a lot of infrastructure that's there to give riders a great experience.

And the same thing is true in the mountains, or in Canada, parts of Scandinavia where people ride. I think the places where people ride are typically those where the weather has been a little bit more reliable even over time.

BRIAN SOZZI: Chris, when will we start to see electric motors in your snowmobiles? And how do you think that will change the riding experience?

CHRIS WOLF: I think it's a great question. Snowmobiles present a particular challenge for electrification just in that we're operating in cold temperatures, we have lots of drag in our system with the track, and just sliding over the snow. So it's not going to be immediately but there are some really interesting use cases we've already looked at, we've already talked to consumers, different types of segments where something like electrification could be really interesting.

And I think what you'll see is it'll probably start small and then as the technology progresses over time, we'll likely see more and more of that come into being. I think it depends a lot on just the advancement of battery technology, frankly.

JULIE HYMAN: And Chris, finally I wanted to circle back around to the demand question and ask where the demand is coming from. How much of your client base is individuals buying snowmobiles versus ski resorts? We've talked to some resort owners that have said in this era of social distancing, skiing sort of lends itself to that. So I'm wondering if they're also doing some buying.

CHRIS WOLF: Yes. The vast majority of our sales are consumers. But there are fleets like ski hills. There are also rental fleets. Because people are looking for experiences and even if they have to travel to get it, they might experience snowmobiling for the first time. So our Polaris Adventures would be an example of that where we have just over other locations across North America and places where people who maybe don't know about snowmobiling, or who are intrigued about it, get a chance to give it a try.

And I think what they find is that it's not all about the adrenaline. A lot of times when we think of power sports, we think it's all about performance, and speed, and acceleration, but we really understand as snowmobilers that a lot of our sport is about what happens when the helmets come off. And that's what people really get to experience.

It's really simply another way to get to spend time with people that you love. And it's a pretty incredible way at that because you get a chance to get out very far away from civilization as it were and get to see the beauty of nature.

BRIAN SOZZI: Now, if that's the case, it's time for me to get a snowmobile. We'll leave it there. Chris Wolf, president Polaris Snowmobiles. Enjoy your weekend riding.

CHRIS WOLF: Thank you.