We recently told you about the management shakeup at Polaris. Notably, the Michael Dougherty naming to the role of the President of motorcycles while retaining his role as President of International. And now, Indian’s CEO Scott Wine says the shakeup and the launch of the Indian Challenger are the main reasons for Polaris’ excellent Q4 results.
According to Wine:
“We ended the year with positive fourth quarter retail momentum in both Off-Road Vehicles and Motorcycles, supporting strong full year, broad-based sales growth of 12 percent.”
“Our recent leadership changes were made to spur both tactical and strategic growth, and the 37 percent increase in Indian Motorcycle sales in the fourth quarter, driven largely by the Indian Challenger, demonstrates what is possible as Mike Dougherty takes over that important segment.”
“In 2019, we delivered strong operational performance across Polaris, especially productivity and delivery, and we expect further gains to create value for customers and shareholders in the year ahead. Our commitment to being a customer-centric highly profitable growth company is unwavering, and I am extremely confident in this Polaris team to deliver on that promise.”
Challenger sales boost financials
Pretty much everything motorcycle related was up. Polaris reported income of $98.9 million for the quarter and results in earnings of $1.58 per share. This is up from $91.4 million, or $1.47 per share the year before. Polaris’ profits are also up and ahead of Wall Street’s average estimates of $1.79.
Sales came in at $1.73 billion, up 7% from the prior but at the low end of Wall Street estimates. The company’s sales growth was led by the Indian Motorcycle division. It saw revenue increase by 37% to $116 million. Most of Indian’s gain comes from its new Challenger, a heavyweight touring model.
Indian’s continuing increased sales stand in stark contrast to its primary competitor, Harley-Davidson (Harley). Harley also recently released its Q4 results, indicating consistently declining sales.
Harley is in the midst of a new business plan to increase its sales. According to Harley’s CEO, Matt Levatich, 2020 is “…the pivotal year in the transformation of Harley-Davidson”.
With Polaris seemingly growing, let’s hope that the MoCo can turn around its business as well.