{"id":1478868,"date":"2024-07-23T14:45:00","date_gmt":"2024-07-23T18:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1478868"},"modified":"2024-07-23T14:45:00","modified_gmt":"2024-07-23T18:45:00","slug":"increasingly-cautious-consumer-polaris-shares-crash-as-high-interest-rates-crush-demand-for-atvs-jetskis","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/increasingly-cautious-consumer-polaris-shares-crash-as-high-interest-rates-crush-demand-for-atvs-jetskis\/1478868\/","title":{"rendered":"“Increasingly Cautious Consumer”:\u00a0Polaris Shares Crash As High Interest Rates Crush Demand For ATVs & Jetskis"},"content":{"rendered":"

“Increasingly Cautious Consumer”:\u00a0Polaris Shares Crash As High Interest Rates Crush Demand For ATVs & Jetskis<\/span><\/p>\n

\n

A toxic trifecta of high interest rates, elevated inflation, and increasingly cautious dealers and consumers led Polaris to report dismal second-quarter results<\/a>. The earnings miss and reduced full-year forecast for sales and profit indicate the once-thriving outdoor adventure market for ATVs, UTVs, jet skis, and snowmobiles is now in a deep freeze.\u00a0<\/p>\n

<\/a><\/p>\n

Polaris reported $1.96 billion in sales for the second quarter, missing the Bloomberg estimate of $2.17 billion. Sales for off-road, on-road, and marine all missed estimates, indicating that consumers are dialing back purchases of outdoor vehicles because of high interest rates.\u00a0<\/p>\n

Here’s a snapshot of second-quarter earnings (courtesy of Bloomberg):\u00a0<\/p>\n

Sales $1.96 billion, -12% y\/y, estimate $2.17 billion (Bloomberg Consensus)<\/em><\/p>\n

Off Road sales $1.53 billion, -6% y\/y, estimate $1.64 billion <\/em><\/p>\n

On Road sales $293.3 million, -19% y\/y, estimate $334.8 million<\/em><\/p>\n

Marine sales $134.1 million, -40% y\/y, estimate $203.9 million<\/em><\/p>\n

Gross profit margin 21.6% vs. 22.8% y\/y, estimate 23.1%<\/em><\/p>\n

Cash and cash equivalents $322.7 million, -5.2% y\/y, estimate $267.7 million<\/em><\/p>\n

Adjusted EPS from continuing operations $1.38, estimate $2.23<\/em><\/p>\n

“The second quarter proved challenging as our industry continued to contend with elevated interest rates, inflation, and an increasingly cautious dealer and consumer,”\u00a0Chief Executive Mike Speetzen wrote in a statement.\u00a0<\/p>\n

Polaris now expects\u00a0full-year sales to decline 17% to 20%, compared with previous\u00a0guidance of down\u00a05% to 7%. It expects\u00a0adjusted EPS to slide\u00a056% to 62%, compared with prior guidance of down 10% to 15%.\u00a0<\/p>\n

Polaris now forecast\u00a0full-year sales to decline by 17% to 20%, a significant drop from the previous guidance of a 5% to 7% decrease. The company also expects\u00a0adjusted EPS to plummet by 56% to 62%, compared to the prior forecast of a 10% to 15% decline.<\/p>\n

Speetzen said, “We have lowered our full-year guidance to reflect the decision to cut shipments and our expectations that current industry challenges remain in place for the remainder of the year.”\u00a0<\/p>\n

In premarket trading, shares are down 14%, the largest intraday decline since early Coivd when government-enforced shutdowns closed the economy.\u00a0<\/p>\n

<\/a><\/p>\n

Also, watch\u00a0MasterCraft Boat,\u00a0MarineMax,\u00a0Camping World, Brunswick, and Malibu Boats.\u00a0<\/p>\n

Polaris is a proxy of consumer health. Certainly, high interest rates and elevated inflation have crimped demand for ATVs, UTVs, and jet skis. The broad theme here is that a consumer slowdown continues to worsen.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 07\/23\/2024 – 10:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/increasingly-cautious-consumer-polaris-shares-crash-high-interest-rates-crush-demand-atvs<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

“Increasingly Cautious Consumer”:\u00a0Polaris Shares Crash As High Interest Rates Crush Demand For ATVs & Jetskis A toxic trifecta of high interest rates, elevated inflation, and…<\/p>\n","protected":false},"author":0,"featured_media":1478869,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1478868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1478868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1478868"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1478868\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1478869"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1478868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1478868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1478868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}