Polaris Industries, the parent company of Indian Motorcycle posted better than expected earnings and sales for the second quarter. Part of those positive results come from its Indian Motorcycle brand and particularly the Indian FTR.
While much of the world motorcycle market continues to languish in a slump, Indian beat the odds, and the competition, by posting strong gains. Indian reported a sales growth of 15%, much of it helped by the sales of its newest FTR model.
While Indian’s North American total retail sales were down mid-single digits, the overall market for mid to heavyweight motorcycles performed even worse. The good news here is that Indian was able to pick up some market share as other motorcycle manufacturers lagged further behind.
Polaris’ good numbers are an indicator of the popularity of its new FTR bike. Although the company has been hit with higher U.S. tariffs on imported steel and other materials, as well as retaliatory tariffs, Indian was able to post positive results.
On the other hand, its rival Harley-Davidson did not fare nearly as well. The MoCo cuts its shipment forecast during its latest earnings report. The result; its US market share dropped by nearly two percentage points.
On the news of the latest earnings report, Polaris tightened its earnings guidance by increasing the lower end of their earnings forecast. Polaris now expects earnings to be in the $6.10 to $6.30 per diluted share range.
Perhaps the best news from Polaris/Indian is that a new, clean design motorcycle can boost earnings even in the face of a falling market. Time will tell.