Polaris Sales Drop 22 Percent in First Quarter of 2022

Not all that glitters is gold. Polaris showed a big drop in retail sales in its earnings report for the first quarter of 2022. Among other troubling metrics, the headline of the report highlights a notable 22 percent drop in retail sales, compared with last year’s 70 percent increase over the same period.

According to Polaris, demand for ORVs is as strong as ever, but continuing supply chain issues have hampered its ability to produce units. The decrease should also be viewed with some perspective. It’s important to keep in mind that last year was a record-setting year for the brand’s sales, which would be hard to match in the best circumstances.

Other highlights from the report note total sales of $1.957 billion, which is basically flat from Q1 of last year. Of this, nearly 85 percent (roughly $1.667 billion) of the total company sales were from North America, and the NA-based sales rose slightly versus the same period in 2021. The brand was able to repurchase around 1.5 million shares of stock worth $172 million.

“Sales for this quarter remained relatively flat to last year, depressed by continued supply chain pressures. While much of our focus centers on navigating the highly volatile and challenging supply chain environment, demand for our industry-leading products and services remains healthy, as we continued to see high levels of pre-sold orders and low cancellations, strong short- and long-term repurchase rates, and record levels of PG&A attachments,” Polaris CEO Mike Speetzen said. “We are making strategic investments in both innovation and operations to enable our long-term growth plans and productivity needs and strengthen our position as the global leader in powersports.”