Arthur Nagorny's questions to Polaris Inc (PII) leadership • Q1 2025
Question
Arthur Nagorny, on for Sabahat Khan, asked for reasons behind the more significant decline in ORV utility retail this quarter and whether the aggressive promotional activity from Japanese OEMs has changed recently.
Answer
CFO Bob Mack attributed the utility weakness primarily to an anomalous February, which saw bad weather and new competitor promotions, but noted the trend seemed to normalize in April. He highlighted that weakness was more pronounced in ATVs, while premium RANGER and XPEDITION models performed well. CEO Mike Speetzen added that Q1 of the prior year was a strong comp. Regarding Japanese OEM promotions, both executives confirmed the dynamic has not changed and is driven by their persistently high inventory levels.