While overall revenue increased 40% in Polaris Inc's second quarter, North American retail sales for the Medina-based company fell 28% compared with the pandemic-fueled surge in late spring and early summer of last year.
Profit for the quarter was $158 million, or $2.52 a share, compared with a net loss of $235 million, or $3.82 a share in the same period of 2020 that included a $379 million pre-tax asset impairment charge related to its aftermarket business.
"All of our segments performed extremely well, posting strong increases in both sales and profitability in the face of a challenging supply chain and increasing input cost environment," said Polaris CEO Mike Speetzen in the company's earnings release. "While supply chain-related headwinds and higher input costs will continue into the second half of the year, the Polaris team's operational dexterity and nimble approach has been nothing short of spectacular. I remain confident in our ability to meet the product demands of our dealers and consumers and deliver value for our shareholders."
Revenue was $2.1 billion for the quarter, with retail sales up 14% over the same period in 2019.
However, the North American sales dip was due to depleted inventory from an unusually high interest in outdoor pursuits during the pandemic. On top of that, supply chains have been stressed from the pandemic, and parts can be hard to come by, so there is low availability of finished products.
Second quarter sales for its ATVs, side-by-side vehicles and snowmobiles increased 38% in the quarter to $1.3 billion. Sales in the Motorcycle segment which includes Slingshot and parts, garments and accessories (PG&A) increased 50% to $212 million, but were behind industry growth due to the short supply of finished bikes. Sales of its pontoon and deck boats including related PG&A rose 49% to $198 million.
For the second quarter in a row the company increased its financial guidance for 2021. After the first quarter the company raised its expectations to say it would earn between $9 and $9.25 per share. Polaris now says it expects to earn $9.35 to $9.60 per share while tightening its sales forecast to 19% to 21% growth over 2020.
In early trading Tuesday Polaris shares were down 4.7% to $132.43 per share while the overall market also started off down.
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Supply chain issues complicate Polaris' continued growth - Minneapolis Star Tribune
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