Polaris Inc. today released second quarter 2023 results. The Company reported worldwide sales of $2,217 million, up 7% vs. the second quarter of 2022. North America sales of $1,883 million represented 85% of total company sales and increased eight percent from $1,748 million in 2022. International sales of $333 million represented 15% of total company sales and increased 6% vs. the second quarter of 2022. Total company sales growth in the second quarter of 2023 was driven by higher shipment volumes, primarily driven by Off Road and Indian Motorcycle, as well as favorable net pricing.
Second quarter net income from continuing operations attributable to Polaris of $134 million decreased 5%. Adjusted net income from continuing operations attributable to Polaris for the quarter was $140 million, down 5%.
Gross profit margin decreased 22 basis points to 22.8% for the second quarter. Adjusted gross profit margin of 22.8 percent decreased 21 basis points primarily driven by higher finance interest and warranty costs, as well as foreign exchange headwinds, partially offset by favorable net pricing.
Off Road segment results were primarily driven by these factors:
- Sales were driven by higher volume partially offset by higher finance interest.
- Parts, Garments and Accessories (PG&A) sales increased 17%.
- Gross profit margin performance was driven by increased warranty costs and lower margin product mix.
- Polaris North America ORV unit retail sales were up 14%. Estimated North America industry ORV unit retail sales were up high-single digits percent.
Polaris updated its 2023 sales outlook to up 3-6% vs. its previous outlook of flat to up 5% vs. 2022.
