Polaris Industries Inc. (NYSE: PII) reported record second quarter net income of $100.9 million for the quarter ending June 30, 2015 ($96.9 million previous year). The company also saw a record $1.49 earnings per diluted share in Q2 2015 compared to $1.42 per diluted share in Q2 2014. Sales for the second quarter 2015 totaled a record $1,124.3 million, an increase of 11 percent over last year’s second quarter sales of $1,014.0 million.
Motorcycle sales are the strongest contributing factor to Polaris’ continued run of record-breaking quarters. Sales of Indian motorcycles and the 3-wheeled Slingshot increased 57 percent to $162.1 million over last year’s second quarter. Snowmobile sales increased 215 percent to $19.3 million for the second quarter of 2015 compared to $6.1 million for the second quarter of 2014. If that number seems out of whack to you, you’re right. The extremely large increase in YOY quarterly sales is due to a large increase in snowmobile shipments in the second quarter of 2015 related to the timing of snowmobile production and a higher mix of Polaris’s new premium snowmobiles with the Axys chassis being shipped to dealers ahead of the upcoming snowmobile retail selling season. The second quarter is historically slow for Polaris snowmobile sales because of the seasonal nature of the sport.
Parts, Garments, and Accessories (“PG&A”) sales increased 17 percent to $187.5 million during the second quarter of 2015 as compared to the same period last year. All product lines experienced double digits percent sales growth during the quarter.
“Innovation remains a cornerstone of Polaris’ success, and at our dealer show next week we will introduce our model year 2016 powersports lineup that will further extend our market leadership. In spite of the short-term headwinds we are facing, both external and of our own making, I am confident this strong and talented Polaris team can continue to deliver industry-leading returns for our shareholders,” stated Wine.