PII - Polaris leans on higher pricing in Q2 plans for product innovation

2023-07-25 06:58:30 ET

Polaris ( NYSE: PII ) reported sales growth of 7% in Q2 , led by strong demand in North America. The Minnesota-based company noted strong contributions from ship volumes and net pricing more than offset higher finance interest.

International sales were up 6% during the quarter. Sales in the off road segment were up 9%, while sales in the on road segment increased 21%. The marine segment saw a 18% drop in sales as higher interest rates cut into demand.

Adjusted EBITDA fell to 38 basis points to 12.0% of sales as favorable net pricing was offset by higher finance interest, warranty costs, and FX pressure. Adjusted gross profit margin as a percentage of sales was down 21 basis points from a year ago. Adjusted EPS was flat from a year ago at $2.42 and higher than the consensus estimate of $2.23.

Looking ahead, Polaris ( PII ) sees full-year sales increasing 3% to 6% to $8.8B to $9.1B vs $8.9B consensus. EPS of $10.20 to $10.75 is anticipated. The outlook from Polaris assumes industry full-year retail to be up in the low-single digits and positive pricing to offset promotional activity. Polaris ( PII ) said its strong product innovation will continue and that it is accelerating rider-driven innovation.

Shares of Polaris ( PII ) fell 0.50% in after-hours trading on Monday to $133.86.

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