Issue link: https://read.dmtmag.com/i/592917
6 • November 9, 2015 • Powersports Business NEWS www.PowersportsBusiness.com Increased sales for SxS and motorcycles Despite the majority reporting "somewhat weak" overall business conditions, 68 percent of dealers said their performance was on or above plan, based on results of the Q3 2015 Powersports Business/RBC Capital Markets Dealer Survey. A total of 121 dealers from 41 states and three Canadian provinces com- pleted the survey. The states not represented are Ala- bama, Alaska, Georgia, New Hampshire, New Jersey, Ohio, Oregon, Rhode Island and Wyoming. Dealers from those states who are interested in participating in the fourth quarter survey should send an email to PSB Editor in Chief Dave McMahon at dmcmahon@powersportsbusiness.com and request to be added to the list. Overall, the responding dealerships sell more than 47 brands of motorcycles, ATVs, side-by-sides, snowmobiles and PWC. A total of 109 of the 141 respondents (90 percent) are single-store owners. SIDE-BY-SIDES RBC Capital Markets analyst Joe Spak reported that side-by-side industry retail growth grew mid-single digits (4-6) percent in Q3. "Indus- try wide, dealer next twelve month (NTM) expectations look similar vs. our 2Q15 survey and are generally optimistic," Spak said. "By brand, Polaris dealers appear just as optimistic as 2Q15, though many have noted discounting cutting into dealer profits." With the addition of the new Can-Am Defender launching BRP into the utility side- by-side segment, it's no surprise that dealer expectations are more positive for that brand as well. "Can-Am (BRP) dealer expectations appear to be have improved, which we par- tially attribute to the new utility side-by-side category," Spak said. Yamaha and Honda expectations were consistently strong, as Spak noted how the release of the Honda Pioneer 1000 and Yamaha YXZ1000R sport side-by- side have improved those dealers' outlook into the fourth quarter. "Industry side-by-side inventory levels look improved versus earlier this year and roughly a similar inventory sentiment versus 3Q14," he added. MOTORCYCLE Of the dealers surveyed, 53 percent reported their motorcycle segment business perfor- mance was on plan, while 20 percent were above plan. "It does appear that 3Q15 Harley- Davidson retail sales growth improved," said Spak, who put Q3 retail sales at an increase of 2-3 percent year-over-year. On a brand perspective, Harley-Davidson increased despite low investor expectations, though increased shipments could mean heavy inventory for Q4. "Polaris' Indian brand looks very strong, while Victory looks a little slower than 2Q15. Can-Am (Spyder) expectations [are] still OK, but we are picking up a slightly downward trend perhaps as Spyder enthusiasm runs out a bit," Spak said. As far as inventory, the majority of dealers noted that in they still believe inventory levels are too high. "Harley inventory declines appear Majority of dealers reach plan for Q3 POWERSPORTS BUSINESS/RBC CAPITAL MARKETS Q3 2015 DEALER SURVEY Answer Response % Answer Response % Answer Response % Answer Response % Aprilia 3% Arctic Cat 15% Bennche 3% Beta 1% BMW 3% Brutus 2% California Sidecar 3% Can-Am 19% CFMOTO 11% Champion Trikes 3% Cub Cadet 3% Ducati 7% Eton 2% GEM 3% Genuine Scooter 3% Hammerhead 3% Harley-Davidson 12% Hisun 1% Honda 31% Husqvarna 5% Hyosung 2% Indian 4% John Deere 1% Joyner 1% Kawasaki 26% KTM 12% KYMCO 9% Landmaster 2% Massimo 1% Moto Guzzi 2% Motor Trike 4% MV Agusta 2% Piaggio 5% Pitster Pro 1% Polaris 35% Royal Enfield 3% Sea-Doo 13% Ski-Doo 9% Slingshot 9% Suzuki 24% SYM 2% Triumph 7% Ural 2% Vespa 5% Victory 12% Yamaha 34% Zero 2% Other 9% PLEASE INDICATE WHICH BRANDS YOUR DEALERSHIP CARRIES See Q3 Survey, Page 8 PLEASE RATE THE FOLLOWING: 4% 8% 3% 3% 8% 5% 28% 25% 32% 24% 38% 17% 29% 25% 39% 43% 36% 52% 33% 31% 20% 28% 15% 17% 6% 11% 6% 2% 3% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall Business Conditions New Unit Sales Used Unit Sales P&A Sales Service Department F&I Very strong Somewhat strong Average Somewhat weak Very weak 27% 26% 44% 35% 19% 29% 40% 53% 60% 65% 47% 61% 77% 62% 54% 42% 14% 9% 9% 4% 4% 9% 6% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Side-by-sides ATVs Heavyweight Motorcycles Sport Bikes Off-road Bikes Scooters PWC Snowmobiles Too heavy About right Too low Source: Powersports Business/RBC Capital Markets Dealer Survey WINNING DEALERS The following dealers who completed the Q3 2015 Powersports Business/RBC Capital Mar- kets Dealer Survey each were selected at random to win a $100 Best Buy gift card, courtesy of RBC Capital Markets. Jan Downing, Outdoors in Motion, Rutland, VT Raymond Walters, Got Gear Motorsports, Ridgeland, MS Tony Cozzone, Team Carolina Powersports, Lancaster, SC Lonnie Apol, Apol's Harley-Davidson, Alexandria, MN Mike Goff, Snake River Yamaha, Meridian, ID All dealers who complete the survey receive a PDF analysis of the results from RBC Capital Markets and are eligible for the $100 Best Buy gift card. HOW WOULD YOU CHARACTERIZE YOUR CURRENT INVENTORY LEVELS BY LINE OF BUSINESS?