The Powersports Industry & M/C Roadracing

310K? WOW! And, there’s no such thing as cheap in that realm. Impressive.

 

That’s all thanks to COVID and making the Lakes and Rivers turn into quarantine And Spring Break Zones...We had a boat show at our dealership today that runs through Sunday... We sold 6 boats on a Cold Thursday outdoors...

 

Live near winnipesaukee in NH boat sales are crazy... dock/slip spaces are incredibly hard to find. Waiting lists for valet service! Happy for all the marinas, wondering what's going to happen when this pandemic is over and people find out the true cost of owning a boat is not the purchase price?

 

Yeah I have been busting my Ass 6 days a week since March of last year when all this shit started... 7 days this week...It’s nuts but good for the future so far...

 

This just in
Harley-Davidson five-year plan ‘failed to impress’: analyst
“Hardwire Fails to Amp Investors,” following the Q4 2020 Harley-Davidson earnings release, BMO Capital Markets analyst Gerrick Johnson reports that Harley-Davidson “released 4Q20 financial results below expectations, which we think were elevated after a surprisingly strong 3Q. The company's five-year plan, aka Hardwire, also failed to impress. The plan was high level with few details. The financial outlook accompanying it was also very conservative. We are not surprised by the Street's negative reaction, which presents a buying opportunity. Going forward, expectations have been reset, the financial bar is low, and we expect positive newsflow in the form of new product announcements and more granular details related to the Hardwire.”
“Key Points
“HOG unveiled its much anticipated Hardwire plan in conjunction with 4Q earnings. We went into the event not expecting many specifics. However, we were surprised at how few specifics there really were. The overriding goal of the plan is to increase brand desirability, concentrating on core product segments while selectively entering new areas. HOG plans on expanding its complementary business, improving the dealer network, expanding its digital platform, and enhancing the customer experience. This sounds great, but details on how this actually happens and what products are coming to market will have to wait.
“The financial targets associated with the plan were conservative. A conservative plan was anticipated, but we think investors were surprised at how low the bar had been set. HOG is forecasting mid-single-digit motorcycle revenue growth and low-double-digit EPS growth through 2025. Management had commented several times how it planned to avoid over-promising and under-delivering, a common occurrence under prior management.
“HOG also provided 2021 guidance, which calls for +20% to +25% motorcycle revenue growth, operating margin of 5% to 7%, and Financial Services growth of +10% to +15%, which implies an EPS range of $2.00 to $2.50. This was below our $3.10 estimate for 2021, the Street's at $2.84.

“The company's 4Q20 results took a back seat to the Hardwire. HOG reported an adjusted 4Q20 loss per share of ($0.44), well short of our adjusted $0.15 estimate and the Street's $0.21. Motorcycle-related sales declined -39% to $531 million, compared to our $736 million (-16%) estimate, and the Street's $771 million (-12%). Worldwide retail sales declined -14% (US -15%, international -14%), in-line with our expectation.”

 

Just throwing it out there that as the baby boomers retire I don’t think it’s a good thing for bike sales/service. Fixed incomes, bikes and aging don’t seem to be the recipe for success.

my dad for one has sold all but one of his bikes and I think it’s likely going to be sold soon. None of his buddies are riding any longer and he doesn’t like to ride alone; so there’s that.

sad but a trend I think will continue.

 

Just as a addition to this point. Mercury Marine had their two most profitable months in company history in August and September.

 

And now this news

Harley-Davidson, Inc. today announced the appointment of Edel O’Sullivan as Chief Commercial Officer (CCO). O’Sullivan will replace existing CCO Larry Hund, who retires from the company following 18 years of service, on April 2, 2021.

Effective March 1, O’Sullivan will join Harley-Davidson with extensive experience in omnichannel retail and durable goods, focusing on commercial excellence and organizational change. She served as a partner at Bain & Company for the past five years of her 14-year tenure, where she led the development of major corporate transformations including the strategic delivery of profitable growth initiatives across multiple industries, with an emphasis on retail, advanced manufacturing and OEMs. Previously, O’Sullivan worked in financial planning and analysis for a division of Procter & Gamble. O’Sullivan holds a Bachelor of Chemical Engineering from the Universidad Simon Bolivar in Caracas, Venezuela and an MBA with distinction, from Harvard Business School.

“Edel has an excellent track record of effectively building commercial and organizational strategies, based on clear market and consumer insights, that deliver strong financial and operational results,” said Jochen Zeitz, chairman, president and CEO of Harley-Davidson. “She will bring new perspectives and capabilities to our leadership team as we execute the priorities of our 5-year strategy, The Hardwire.”

Hund, 64, will work closely with O’Sullivan through the transition ensuring a consistent handover. Prior to taking on the CCO role, Hund was President of HDFS for 11 years. The company will continue to leverage Hund’s knowledge and experience as he will remain chairman of the Harley-Davidson Financial Services Board of Directors.

“I want to thank Larry for his 18 years of hard work and dedication to Harley-Davidson. I am most grateful that he took on the challenge to help build and transform the newly structured global commercial operation as part of the Rewire over the last year. Larry has been an outstanding leader and I look forward to his continued contribution as chairman of HDFS,” said Zeitz.

Harley-Davidson recently unveiled The Hardwire, its 2021-2025 strategic plan targeting long-term profitable growth and shareholder value and aiming to enhance its position as the most desirable motorcycle brand in the world.

 

It looks like BRP is trying to sell more in NA in a tough snowmobile market

"Ski-Doo on Wednesday revealed that sibling brand Lynx, based in Finland, is coming to U.S. market with three 2022 models: the Lynx Rave RE and two Boondocker DS models."

 

Ok here is some updated info
As we already knew 2020 new unit sales were up overall by 18.4% and that was driven by off road bikes and ATVs. HD and the cruiser/touring segment took a pretty big hit and sport bikes did just OK. 2020 replacement tire sales were up a bit over 4% vs. 2019 and that came from super strong sales in the last 6 months of the year.

 

I think the only limiting factor this year is supply of units and parts/accessories. I'd love to see the average profit per unit for 2021 vs like 2019. Its skyrocketing and the amount of accessories sold to each machine is growing too.

 

(cough) * Motion Pro *(cough)

 

(cough)*pretty much every brand under the sun*(cough)

 

Geez, this is some marketing buzzword, word salad. I also noticed, no mention anything motorcycle related in her bio.

 

Motorcycle Industry Council Schlogel to present at Capitol Hill briefing

March 18, 2021
Outdoor Recreation Roundtable (ORR), the country’s leading outdoor recreation coalition, will outline the $788 billion industry’s objectives and priorities for 2021 and beyond on Wednesday, March 24.
Much of the focus will be on the industry’s 21st century recreation agenda, capitalizing on soaring participation rates for job creation and economic recovery and particularly how recreation can create jobs in rural America. The group will also discuss implementing the goals of the Great American Outdoors Act and the process of choosing and implementing LWCF projects.
The briefing will include representatives of the boating, motorcycle, RV, outfitter, ski and all outdoor recreation sectors.

 

Will this be discussed as well?
https://www.sema.org/news-media/enews/2021/09/sema-challenges-epas-motorsports-regulations-court?__utma=95790915.1249246326.1616081401.1616081404.1616081404.1&__utmb=95790915.0.10.1616081404&__utmc=95790915&__utmx=-&__utmz=95790915.1616081404.1.1.utmcsr=google|utmccn=(organic)|utmcmd=organic|utmctr=(not provided)&__utmv=-&__utmk=202718425

https://www.sema.org/epa-news

 

More Harley news
Harley-Davidson announces Q1 earnings, says organization ‘leaner, faster and more efficient’
April 20, 2021

Harley-Davidson has announced its Fiscal Year 2021 Q1 earnings.
"I am very pleased with the pace of recovery that we have seen across our business, as demonstrated by the strong financial results this quarter. The actions we have taken to reshape the business are having a positive impact on our results, especially for our most important North American region," said Jochen Zeitz, chairman, president and CEO of Harley-Davidson in the announcement. "We can see the initial signs of consumer excitement and optimism returning and I am confident Harley-Davidson in 2021 is a significantly leaner, faster, and more efficient organization which is ready to win and successfully deliver on our five-year Hardwire strategy, as the most desirable motorcycle brand in the world."
First Quarter 2021 Highlights, Results and Related Guidance
* Delivered Q1 GAAP diluted EPS of $1.68, up $1.23 over Q1 2020
* Motorcycles and Related Products (Motorcycles) segment revenue up 12% amid strong retail demand for Touring motorcycles
* Significantly improved Motorcycles segment gross margin and operating margin driven by favorable mix following the Rewire product portfolio adjustments, lower sales incentives and reduced SG&A
* Financial Services segment Q1 2021 operating income growth of $96 million over Q1 2020 driven by a favorable adjustment to the provision for credit losses
Increased Q1 cash flow from operations to $163 million, up $171 million over Q1 2020
* Increasing 2021 full-year guidance on Motorcycles segment revenue, Motorcycles segment operating margin assuming the company is able to mitigate additional EU tariffs, and Financial Services segment operating income
First Quarter 2021 results
Consolidated revenue was up 10 percent in the first quarter over Q1 2020. Bottom-line results reflect Q1 significant net income improvement with strong results in both the Motorcycles and the Financial Services segments.
Global retail motorcycle sales in the first quarter were up 9 percent, driven by very strong Q1 U.S. retail growth over Q1 prior year. EMEA retail sales declines were impacted by continued COVID lockdowns, the company's decision not to continue selling Street or Sportster motorcycles in Europe and shipping delays brought on by the pandemic. In Latin America, retail sales were impacted by the reduction in dealers and pricing actions across the portfolio, which were executed as part of the Rewire strategy.
Motorcycles and related products segment results
Revenue from the Motorcycles and Related Products segment was up during the first quarter primarily driven by a 3% increase in wholesale shipments and a favorable mix of Touring motorcycles. First quarter global retail motorcycle sales were up 9%, driven by a 31% retail growth in the United States.
Parts and Accessories revenue was mostly in-line with Motorcycles revenue growth while General Merchandise was up 2% over Q1 2020.
First quarter gross margin was up 5.1 percentage points to Q1 prior year while first quarter operating margin finished up 10.8 percentage points over Q1 prior year due to stronger mix, the near elimination of sales incentives and lower spending versus prior year.
2021 outlook
As a result of its Q1 performance, for the full-year 2021, the company now expects:
Motorcycles segment revenue growth to be 30 to 35%, an increase from the previously communicated growth range of 20 to 25%.
Motorcycles segment operating income margin of 7 to 9%, which is 200 basis points better than previous guidance. Assuming the company is not able to mitigate the additional EU tariffs to any extent in 2021, the company expects the operating income margin would be 5 to 7%, in line with original guidance.
Financial Services segment operating income growth of 50 to 60%, an increase from the previously communicated range of 10 to 15%.

 

Polaris News

Polaris has announced its Fiscal Year 2021 Q1 earnings, no doubt to the delight of many, as the company is reporting an overall adjusted sales increase of 39%, and an adjusted gross profit margin of 24.7%.
Meanwhile, market share improved for all segments during the quarter, including ORV, snowmobiles, motorcycles and boats, as North American retail sales increased 70% compared to last year.
“The strength of our brands and the agility and dedication of the global Polaris team were on full display yet again this quarter, building on our incredible momentum from 2020 and delivering results that exceeded our expectations. Despite pandemic-related supply chain constraints, logistical challenges, and North American weather related disruptions, sales across our business grew double-digits as we leveraged our capabilities and scale as the industry leader in powersports to deliver for our customers and dealers,” said interim CEO Mike Speetzen in the announcement. “Industry-leading innovation remains core to who we are, which was evident by the introduction of over 40 new or limited edition models during the quarter, including 22 new snowmobiles and a new turbo charged engine, 15 new and limited edition ORV models and three all-new Indian Chief motorcycles celebrating 100 years of one of the most historic and influential motorcycles of all time. We also announced plans to launch an all-new full-size electric RANGER by year-end, which further positions us to be the leader in powersports electrification.”

Gross profit increased 64% to $481 million for the first quarter of 2021 from $293 million in the first quarter of 2020. Reported gross profit margin was 24.6% of sales for the first quarter of 2021, up 378 basis points compared to 20.8% of sales for the first quarter of 2020. The improvement in gross profit was driven primarily by higher volumes and lower promotional costs during the quarter, partially offset by higher logistical costs and plant inefficiencies related to the supply-chain constraints. Adjusted gross profit for the first quarter 2021 was $483 million, or 24.7% of adjusted sales compared to the first quarter of 2020 adjusted gross profit of $298 million, or 21.2% of sales. Adjusted gross profit for the first quarter of 2021 and 2020 excludes the negative impact of $2 million and $5 million of restructuring and realignment costs, respectively.

Operating expenses increased 2% for the first quarter of 2021 to $313 million from $307 million in the same period in 2020. Operating expenses were higher due to an increase in administrative expenses. Income from financial services was $16 million for the first quarter of 2021, down 18% compared with $20 million for the first quarter of 2020. The decrease was primarily the result of a decrease in wholesale financing income during the quarter due to lower dealer inventory levels.

Off-Road Vehicles (“ORV”) and Snowmobiles segment sales, including PG&A, totaled $1,232 million for the first quarter of 2021, up 50% compared to $824 million for the first quarter of 2020 driven by broad based strength across ATVs, side-by-sides and Snowmobile sales. PG&A sales for ORV and Snowmobiles combined increased 51% in the first quarter of 2021 compared to the first quarter last year. Gross profit increased 62% to $327 million in the first quarter of 2021, compared to $202 million in the first quarter of 2020. Gross profit percentage increased 208 basis points during the 2021 first quarter compared to the prior year due to strong retail demand driving lower promotional and floor-plan finance spending, partially offset by supply chain constraints.

ORV whole good sales for the first quarter of 2021 increased 39%. Polaris North American ORV retail sales increased approximately 80% for the quarter with side-by-side vehicles up high sixty percent and ATV vehicles up about 100%. The North American ORV industry was up about 60% compared to the first quarter last year.

Snowmobile whole good sales in the first quarter of 2021 were $75 million compared to $6 million in the first quarter last year. Polaris snowmobile retail sales were up low-20% during the first quarter of 2021 and up mid-20% for the 12-month season ending March 2021. North American industry retail was up mid-single digits percent for the first quarter and up mid-teens percent for the season ending March 2021.

Motorcycle segment sales, including PG&A, totaled $166 million, up 31% compared to the first quarter of 2020, driven primarily from increased sales of Slingshot, Indian Motorcycles, and related PG&A. Gross profit for the first quarter of 2021 was $8 million compared to a $1 million loss in the first quarter of 2020. The increase in gross profit margin was driven by volume and lower promotional costs offset somewhat by increased costs from supply chain constraints and negative product mix. North American consumer retail sales for Indian Motorcycles increased low 60% during the first quarter of 2021 in a mid-to-heavy-weight two-wheel motorcycle industry that was up mid-30%. North American consumer retail sales for Polaris' motorcycle segment, including both Indian Motorcycle and Slingshot, increased low-seventies percent during the first quarter of 2021. North American consumer retail sales for the motorcycle industry including both two-wheel and three-wheel increased high-30% during the first quarter of 2021.

Boat segment sales increased 29% to $199 million in the 2021 first quarter compared to $155 million in the 2020 first quarter, driven by sales growth in all three brands, Bennington, Godfrey and Hurricane. Gross profit increased 56% to

$46 million or 23.4% of sales in the first quarter of 2021, compared to $30 million or 19.2% of sales in the first quarter of 2020 due to increased volume and positive product mix partially offset by increased supply chain constraint costs.

Parts, Garments, and Accessories (“PG&A”) sales increased 49% for the 2021 first quarter with all categories and business segments growing sales during the quarter. International sales to customers outside of North America, including PG&A, totaled $288 million for the first quarter of 2021, up 59% from the same period in 2020. All regions realized significant sales increases year over year.

 

Wow that’s impressive!!

Amazing what some free time and free money from the government will do for an industry. It sure would be nice if the industry stays healthy after all this covid stuff is over.

 

In addition to what you said, I think all of this has made people stop putting off buying toys, I've seen sooo many more side by sides and even luxury cars and supercars this last year than I Ever have before