Surging motorcycle sales, led by the extraordinary success of its reborn Indian brand, were the headline act in first-quarter 2016 financial results for US powersports manufacturer Polaris Industries.
Global bike revenue during the period grew by 18% to £131.1m. Retail motorcycle sales in the company’s core North American market were reportedly 6% up overall with Indian products climbing by more than 50%. Although no unit volume figures were made available, this supports analyst estimates that Indian is now making an increasing impact on Harley-Davidson’s dominant domestic cruiser market share. Exports of Indian and Victory motorcycles rose by 42%, thanks primarily to strong European sales.
However, performance of Polaris off-road vehicles — comprising quadbike and side-by-side ATVs, plus snowmobiles — was far less impressive. Associated revenue was 9% down at £501.8m, as wholesale shipments were reduced to manage dealer inventory in the face of volatile markets.
Total revenue fell by 5% to £684.5m. Operating profit suffered a 49% decline to £53.7m, as operating expenses stacked on 20%, driven by a jump in R&D investment. Net profit dropped by 47% to £32.7m.Â