Brian Morrison's questions to BRP (DOOO) leadership • Q2 2026
Question
Brian Morrison of TD Cowen inquired about the revenue recovery profile as wholesale aligns with retail, following a significant destocking headwind. He also asked for framing on the margin impact from promotional activity this year and going forward as industry inventory normalizes.
Answer
CFO Sébastien Martel explained that the inventory destocking in the current fiscal year had a $400-$500 million revenue impact, which should become a tailwind next year as wholesale matches retail. He noted that while the promotional environment was tough this year, BRP benefited by about 75-100 basis points versus the prior year. Martel suggested another 50 basis point tailwind from lower promotions next year is a plausible scenario as the market stabilizes.