Polaris came into 2023 with a strong new product mix creating high expectations but fell short of their goals for multiple reasons, both in and out of their control. Confident it has identified the problem areas Polaris has begun making progress on its efficiency and margin initiatives for 2024.
“As reflected in our outlook, segments of our industry are expected to remain challenged in 2024, but we believe we will continue to capture market share with our robust lineup and new products coming later this year,” comments Mike Speetzen, CEO of Polaris. “The Polaris team’s relentless efforts remain focused on delivering the most innovative products in the industry, unmatched customer experiences and stronger operating fundamentals.”
Polaris reported worldwide sales of $2,289 million, down five percent versus the fourth quarter of 2022. North America sales of $1,995 million represented 87 percent of total company sales and decreased five percent from $2,108 million in 2022.
International sales of $294 million represented 13 percent of total sales and decreased one percent versus the fourth quarter of 2022.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
• Full year 2023 sales were $8,934 million, up four percent compared to last year.
• Full year 2023 reported diluted earnings per share from continuing operations was $8.71, down 13 percent
versus last year; adjusted diluted earnings per share from continuing operations was $9.16, down 12 percent
versus last year.
• Fourth quarter sales were $2,289 million, down five percent compared to last year.
• Fourth quarter reported diluted earnings per share from continuing operations was $1.81, down 46 percent
versus last year; adjusted diluted earnings per share from continuing operations was $1.98, down 43 percent
versus last year.
• Primary factors affecting fourth quarter sales were lower volume, net pricing driven by higher promotional
spend and higher finance interest.
• Fourth quarter market share gains in Off Road.
• Powersports retail sales for the quarter were up seven percent versus last year driven by growth in snow and
utility ORV, more than offsetting softness in On Road and Marine.
• Polaris announced full year 2024 sales and adjusted earnings guidance with full year sales expected to be
down 5 to 7 percent and full year adjusted earnings per share expected to be down 10 to 15 percent, both sales
and adjusted earnings per share are compared to full year 2023.
With the intro of the new Polaris Expedition and new models of the Polaris General and Ranger, Polaris has perfectly positioned itself to capitalize on the growth in the utility off-road market creating an upgrade path for consumers. The trend of more closed cab offerings opens UTVs up to parts of the United States and the World with inclement weather. California will always be the trendsetter for off-road vehicles, but creating vehicle variants with heating and air conditioning is just good business. As more consumers get introduced to the function, capability, and fun of these vehicles, I have no doubt we will see continued growth.
