Everything's coming up Indian Motorcycle!
What a difference a quarter makes! At the end of Q2, 2020, Polaris announced that sales had decreased 15 percent year-on-year—which, given the ongoing pandemic, wasn’t difficult to understand. That was then and this is now, though, because Polaris just released its Q3 numbers and they paint a much rosier picture for the Minnesota-based company.
Released on October 27, 2020, the Q3 report states that overall sales for the company increased 10 percent as compared to the same time period in 2019. Given all the extra challenges this year has thrown in everyone’s way—from regular people to business entities of all shapes and sizes—that has to come with an even bigger sense of accomplishment.
There’s more good news to report in the motorcycle segment of the business as well. Sales are up 11 percent for Q3 of 2020 as compared to the same time in 2019. It’s worth noting here that Polaris includes both Indian Motorcycles and Slingshot sales in these numbers, and does not distinguish between the two lines. It also includes sales of parts, gear, and accessories (PG&A) in its reporting in this segment.
Polaris notes that Indian Motorcycle sales in the North American market increased in the low-forty percent range for Q3 of 2020, which would be impressive in any year. All this good news led Polaris chairman and CEO Scott Wine to say,
“I am extremely proud of the diligent and efficient efforts of our team to mitigate these [COVID-19-related] supplier disruptions and drive a three-year high in quarterly gross profit margins. Demand has remained strong to start the fourth quarter and we expect our sales and earnings momentum to continue for the rest of the year. This pushes our expectations for overall company performance to exceed our pre-COVID-19 targets for 2020, demonstrating our confidence in the team to accelerate production as we manage through continued challenges.”
“Thanks to the dedication, innovation and customer-centric work of our entire Polaris team, whom we are working relentlessly to keep safe, we are realizing tremendous progress from our strategic investments in supply chain and digital transformation, electrification, and breakthrough product development programs. I am very optimistic about the future growth and profitability prospects for Polaris and our stakeholders,” he concluded.