Polaris Q3 2022 Earnings Results - Indian Motorcycle "Up High-Single Digits Percent"
In releasing financial and operational highlights from its Q3 results, Polaris has stated that worldwide sales were $2,341m, up by +32% compared to Q3, 2021.
Diluted earnings per share from continuing operations were reported as $3.17, up +69% versus last year; adjusted diluted earnings per share from continuing operations was $3.25, up +64% versus last year.
Primary drivers in the quarter were "higher volumes, strong pricing and favorable mix, supported by modest sequential improvement in supply chain."
Retail sales for the quarter were down 8% versus last year, despite strong performance in Motorcycles, primarily driven by continued supply chain challenges and softness in Recreation Off-Road demand.
'record sales in the quarter'
Mike Speetzen, Chief Executive Officer of Polaris Inc., stated: "We maintained our focus on executing for customers, dealers and shareholders. Our results were bolstered by easing supply chain headwinds that enabled us to increase shipped volumes and take advantage of our strong pricing strategy - resulting in record sales in the quarter.
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"Mike Speetzen, Chief Executive Officer of Polaris Inc., stated: "Our results were bolstered by easing supply chain headwinds that enabled us to increase shipped volumes and take advantage of our strong pricing strategy - resulting in record sales in the quarter."
"Looking forward, our diverse portfolio, commitment to innovation, strong financial position and track record of successfully navigating in various operating environments gives me incredible confidence in Polaris’ ability to deliver long-term profitable growth and shareholder value.""We believe we are well positioned to meet our commitments for the year, while our team remains highly vigilant and agile should indicators point to shifts in consumer behavior or new market dynamics.
North America sales of $2,069m represented +88% of total company sales and increased +35% from $1,532m in 2021. International sales of $272m represented +12% of total company sales and increased +10% versus the third quarter in 2021. "Sales in the third quarter of 2022 were propelled by accelerated shipments towards the latter part of the quarter, as well as higher pricing and favorable mix."
Gross profit margin increased 26 basis points to 23.9%. Adjusted gross profit margin of 23.9% increased 15 basis points, driven by higher pricing. Operating expenses were $317m in the third quarter of 2022 compared to $273m in the third quarter of 2021 due to higher sales and marketing and R&D expense. Operating expenses, as a percentage of sales of 13.5%, were down in the third quarter of 2022 compared to the third quarter of 2021.
On-Road segment sales were bolstered by sequential improvement in component availability driving increased shipments, stable demand and higher pricing. PG&A sales increased +17%. Gross profit margin performance was driven by favorable product mix and higher volumes, which more than offset higher input costs and FX headwinds.
'North America ORV unit retail sales down high-single digits percent'
North America unit retail sales for Indian Motorcycle were up high-single digits percent. North America unit retail sales for the comparable motorcycle industry were down low-single digits percent.
Off-Road segment sales were driven by accelerated shipment volume, higher pricing and favorable product mix. Parts, Garments and Accessories (PG&A) sales increased +18%. Gross profit margin performance was driven by favorable pricing and higher volumes.
Polaris North America ORV unit retail sales were down high-single digits percent. Estimated North America industry ORV unit retail sales were up low-single digits percent.
Marine segment sales were driven by accelerated shipment volume, higher pricing and favorable product mix. Gross profit margin performance was driven by higher input costs offset by favorable product mix.
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