Polaris, the parent company of Indian Motorcycle, has reported 40 per cent more motorcycle sales in the third quarter of 2020, that is, the July to September period. Overall Power sports retail sales increased 15 per cent year over year, and power sports include boats, snowmobiles, motorcycles and off-road vehicles, all segments Polaris operates in. The silver lining is that Polaris' motorcycle sales, which includes a major chunk of Indian Motorcycle sales, displayed considerable growth, and even took the Polaris management by surprise.
Indian Motorcycle sales continue to exhibit strong performance
"We weren't as optimistic about bikes. But the thing that became evident is rider groups are popping up all over the place," said Polaris Chief Financial Officer Michael Speetzen. Apparently, riding groups have become more common in the face of the COVID-19 pandemic, as it represents a way to get out with friends in a socially distanced way. New bikes account for 10 per cent of Polaris' sales.
"Demand has remained strong to start the fourth quarter and we expect our sales and earnings momentum to continue for the rest of the year. This pushes our expectations for overall Company performance to exceed our pre-Covid-19 targets for 2020, demonstrating our confidence in the team to accelerate production as we manage through continued challenges," added Scott Wine, Chairman and Chief Executive Officer of Polaris Inc.
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Harley-Davidson also reported its strongest third quarter since 2015, despite decreasing sales volume. While both revenue and sales declined for Harley-Davidson, net income increased 39 per cent, seen as the effects of The Rewire strategy outlined by CEO Jochen Zeitz to focus on reducing production and costs, and to clear out existing inventory.
