Consumers aren't buying big-ticket items right now.

Polaris is feeling the heat, as in its recent earnings report, the brand stated it saw its profits drop a whopping 82% compared to last year. That's, uh...bad. 

During the call, Polaris' CEO Mike Speetzen stated that one factor, high interest rates, was very much an issue causing distress within the company. Higher interest rates mean it's harder not to be underwater on a purchase, as well as making payments affordable. And that while the Federal Reserve marginally lowering interest rates helped, more would need to be done in order to get people financing these machines again. 

Another big issue that Polaris is facing, though not something that was brought up during the call, was that the entire snowmobile industry felt more pain than usual as last year's snowfall on the East Coast of the United States wasn't something to write home about. Indeed, the lack of snow for the vast majority of the East Coast caused many to not only push off buying a new machine, but even registrations of old machines were down. That's just another blow to the company's profits.

Speetzen did state that one issue Polaris is looking to address is outdated inventory that's now stockpiling on dealership lots. "A healthy dealer network is one of the critical components to our long-term success, which is why we have anchored our current production and shipment plans to our goal of lowering dealer inventory by 15 to 20 percent by the end of the year, and I am encouraged by the progress being made," said Speetzen in a press release ahead of the call. 

Polaris now expects to see about a 20% fall in profits compared to last year. As you'd expect, the company's stock price has tumbled slightly on that news. Likewise, Polaris stated that in order to have a better outlook going forward, the company will be doing certain restructuring plans, stating, "The Company is executing certain corporate restructuring activities across the organization to increase efficiency and focus its business, including the divestitures of the GEM, Taylor-Dunn and Transamerican Auto Parts businesses."

We'll have to wait to see where the chips fall with Polaris, as it figures out how to move forward in this new world. That said, the company does make excellent powersport equipment. But you can't bank just on good engineering. 

https://www.rideapart.com/news/738495/polaris-sales-plunge-snowmobile-utv-atv-third-quarter/

 

They just kept making machines and didn't pay attention to what market was doing!!

did they think covid sales would keep going forever???

not like guys buy a new sxs or atv every couple years like sleds?

No reference to one of their other major issues .... QUALITY.  Who wants to spend $20K+ on a snowmobile only to receive STOP RIDE notifications?

Don't get me wrong, I love my sled and my SxS (knock on wood) but I'd be hard pressed to buy anything new given the issues that seem to continue to plague Polaris.

Wait, people go into debt for these stupid toys?  

This is just a big old market correction.  Just like what's going to happen with the real estate market.  Buckle up buttercup 

1 hour ago, X2700 said:

They just kept making machines and didn't pay attention to what market was doing!!

did they think covid sales would keep going forever???

not like guys buy a new sxs or atv every couple years like sleds?

seems that way... 

1 hour ago, Bontz said:

No reference to one of their other major issues .... QUALITY.  Who wants to spend $20K+ on a snowmobile only to receive STOP RIDE notifications?

Don't get me wrong, I love my sled and my SxS (knock on wood) but I'd be hard pressed to buy anything new given the issues that seem to continue to plague Polaris.

🔥

1 hour ago, mnstang said:

Wait, people go into debt for these stupid toys?  

This is just a big old market correction.  Just like what's going to happen with the real estate market.  Buckle up buttercup 

yup... people finance themselves right up to their eyeballs just so they can say they own a _____________.  now the Fed is cutting rates to keep the charade alive and well.

I look forward to the inevitable meltdown.

 

Edited October 24, 2024Oct 24 by Crnr2Crnr

1 hour ago, mnstang said:

Wait, people go into debt for these stupid toys?  

This is just a big old market correction.  Just like what's going to happen with the real estate market.  Buckle up buttercup 

Few more payments and my 96 Bearcat will be all mine!

I got a good chuckle out of an interview on BNN with the CEO of BRP, just after the interest rates started going back up. And he said, to the effect, that BRP's product mix would not be affected as they sell to folks that are not impacted severely by down turns or market conditions. I thought to myself how could you be so arrogant and out of touch with who your customers are. Now I drive by the local BRP dealer and there is loads of new and used goods sitting in their yard. Sleds, Sea Doos, ATV's, etc. All the while the out of touch CEO is continuing to run production unchanged. Bet his production has been scaled back now.

And he best hope for a good snow year or murkier waters lie ahead.

36 minutes ago, Tripleflipper said:

I got a good chuckle out of an interview on BNN with the CEO of BRP, just after the interest rates started going back up. And he said, to the effect, that BRP's product mix would not be affected as they sell to folks that are not impacted severely by down turns or market conditions. I thought to myself how could you be so arrogant and out of touch with who your customers are. Now I drive by the local BRP dealer and there is loads of new and used goods sitting in their yard. Sleds, Sea Doos, ATV's, etc. All the while the out of touch CEO is continuing to run production unchanged. Bet his production has been scaled back now.

And he best hope for a good snow year or murkier waters lie ahead.

if it looks like that at BRP and Polaris... imagine much smaller and much lower sales numbers Arctic Cat? 

another bad winter and the entire industry might be fucked, but Cat will be the most fucked.  funny how washer fluid boy doesn't grasp that the Midwest and Northeast are the biggest sales markets for all the manufacturers and the potential global impact. 

oh well... 

2 hours ago, Sled_Hed said:

Few more payments and my 96 Bearcat will be all mine!

4 hours ago, Crnr2Crnr said:

Consumers aren't buying big-ticket items right now.

Polaris is feeling the heat, as in its recent earnings report, the brand stated it saw its profits drop a whopping 82% compared to last year. That's, uh...bad. 

During the call, Polaris' CEO Mike Speetzen stated that one factor, high interest rates, was very much an issue causing distress within the company. Higher interest rates mean it's harder not to be underwater on a purchase, as well as making payments affordable. And that while the Federal Reserve marginally lowering interest rates helped, more would need to be done in order to get people financing these machines again. 

Another big issue that Polaris is facing, though not something that was brought up during the call, was that the entire snowmobile industry felt more pain than usual as last year's snowfall on the East Coast of the United States wasn't something to write home about. Indeed, the lack of snow for the vast majority of the East Coast caused many to not only push off buying a new machine, but even registrations of old machines were down. That's just another blow to the company's profits.

Speetzen did state that one issue Polaris is looking to address is outdated inventory that's now stockpiling on dealership lots. "A healthy dealer network is one of the critical components to our long-term success, which is why we have anchored our current production and shipment plans to our goal of lowering dealer inventory by 15 to 20 percent by the end of the year, and I am encouraged by the progress being made," said Speetzen in a press release ahead of the call. 

Polaris now expects to see about a 20% fall in profits compared to last year. As you'd expect, the company's stock price has tumbled slightly on that news. Likewise, Polaris stated that in order to have a better outlook going forward, the company will be doing certain restructuring plans, stating, "The Company is executing certain corporate restructuring activities across the organization to increase efficiency and focus its business, including the divestitures of the GEM, Taylor-Dunn and Transamerican Auto Parts businesses."

We'll have to wait to see where the chips fall with Polaris, as it figures out how to move forward in this new world. That said, the company does make excellent powersport equipment. But you can't bank just on good engineering. 

https://www.rideapart.com/news/738495/polaris-sales-plunge-snowmobile-utv-atv-third-quarter/

 

So, could this be called a ... profit loss?

Asking for a friend 

 

2 minutes ago, mnstang said:

So, could this be called a ... profit loss?

Asking for a friend 

 

we'll need to hire some consultants... 

They can’t afford to buy them not aren’t. Maybe I’m wrong but I don’t think lower rates will solve their issues. I don’t even think lower prices will I mean showrooms are flooded with inventory a lot of which has big discounts and it’s not selling.

Edited October 24, 2024Oct 24 by 800renegaderider

Deal of the day 

16 minutes ago, Not greg b said:

Deal of the day 

Do they offer a 30yr fixed on that thing?

16 minutes ago, Not greg b said:

Deal of the day 

Jeep Wrangler $ for a toy... hard pass.  

 

55 minutes ago, Not greg b said:

Deal of the day 

Unbelievable how many we see on trails!!!

mostly retired couples!!!

32 minutes ago, X2700 said:

Unbelievable how many we see on trails!!!

mostly retired couples!!!

I see a fair amount of them around here on weekends too.

MY KAWASAKI ATV IS FAR SUPERIOR TO THE POLARASS ATVS

 

You can throw  campers in this mix also! Lots are packed!!!!

Fuck the OEM’s. They and their dealers took full advantage of COVID and supply chain bullshit to rape buyers on the price of sleds, SxS’s and ATV’s. How quickly everyone is forgetting the additional fees the OEM’s tacked onto the MSRP of their machines. The dealers and OEM’s all wanted those “market adjustment” price hikes the automobile manufacturers and dealers were adding to prices.
 

They forgot one big thing….. no one needs a new sled, SxS or ATV. They are luxury goods. Recreational vehicles are a nice thing to have, not a necessity like an automobile. Fuck all three OEM’s. I hope this puts a good hurting on them and continues the lowering of prices to something actually reasonable. Sled prices have outpaced inflation for years years now. 

29 minutes ago, X2700 said:

You can throw  campers in this mix also! Lots are packed!!!!

buying a camper makes spending $45k on a SXS seem like a sound financial decision

1 hour ago, krom said:

buying a camper makes spending $45k on a SXS seem like a sound financial decision

You ain't shitting. Can't give my 22 Solitude away.

1 hour ago, krom said:

buying a camper makes spending $45k on a SXS seem like a sound financial decision

but... they're so finely constructed, like a Stradivarius violin ?

 

3 hours ago, krom said:

buying a camper makes spending $45k on a SXS seem like a sound financial decision

Just finance the camper for 10 years to get the payment down 

34 minutes ago, Sled_Hed said:

Just finance the camper for 10 years to get the payment down 

Paid mine off.  Can't sell it now. 200.00 a year insurance, and 12.00 license a year. 2021 model. Will just keep it forever.

Edited October 25, 2024Oct 25 by ZR6000RR

3 hours ago, krom said:

buying a camper makes spending $45k on a SXS seem like a sound financial decision

Boats are just as bad