Issue link: https://read.dmtmag.com/i/592917
8 • November 9, 2015 • Powersports Business NEWS www.PowersportsBusiness.com POWERSPORTS BUSINESS/RBC CAPITAL MARKETS Q3 2015 DEALER SURVEY to have been offset by increases across some other brands," Spak said. ATVS In the ATV segment, 67 percent of those surveyed said they were on or above their current business performance plan. Despite softer sales in this quarter, ATV inventory levels remained steady. "Looking ahead, dealer industry optimism looks more muted vs. 2Q15," Spak said. "The same is the case (to varying degrees) by brand with the exception of Polaris where optimism looks to be trending up. This may be in part driven by new product introductions." SNOWMOBILES When separated by product segment, snow- mobiles reported the highest percentage on or above plan with 78 percent. Forty-three per- cent of snowmobile dealers said that customer buying interest is somewhat better, which is the highest percentage since 2014. Spak said that snowmobiles appeared soft in Q3, though it is still early within the season for growth. Dealer expectations for the next twelve months was reported as optimistic, with 50 percent predicting a 5-10 percent increase in retail sales. NEXT TWELVE MONTHS Customer traffic increased in Q3, with a large number of dealers saying it was somewhat bet- ter or significantly better than Q2. Fifty-three percent of dealers said customer buying inter- ested remained the same year-over-year. Overall, interest by product remained con- sistent with the previous quarter in side-by- side, ATV and motorcycle segments. As far as the dealer's next twelve months (NTM) view, Spak said that "heavyweight motorcycles and ATVs also ticked lower as weak sales environ- ment continues to drag. Side-by-side expecta- tions are more flattish, but we note [they] have remained fairly optimistic." PSB Q3 SURVEY CONTINUED FROM PAGE 6 HOW WOULD YOU CHARACTERIZE CUSTOMER BUYING INTEREST IN THE LAST THREE MONTHS COMPARED TO THE SAME PERIOD LAST YEAR? Significantly better Somewhat better 32% About the same 33% Somewhat worse 23% Significantly worse 8% 4% WHERE APPLICABLE, PLEASE PROVIDE YOUR YEAR-OVER-YEAR SALES GROWTH (NEW PRODUCTS ONLY, MEASURED IN UNITS) FOR Q3 (JULY-SEPT.) OF 2015. WHERE APPLICABLE, WHAT TYPE OF GROWTH ARE YOU EXPECTING BY LINE OF BUSINESS (NEW PRODUCTS ONLY, MEASURED IN UNITS) OVER THE NEXT 12 MONTHS? HOW WOULD YOU CHARACTERIZE YOUR CALENDAR Q3 (JULY-SEPT.) BUSINESS PERFORMANCE RELATIVE TO PLAN? HOW WOULD YOU CHARACTERIZE CUSTOMER TRAFFIC IN THE LAST THREE MONTHS COMPARED TO THE SAME PERIOD LAST YEAR? Above plan 19% On plan 49% Below plan 32% Significantly better 2% Somewhat better 32% About the same 36% Somewhat worse 22% Significantly worse 8% 3% 1% 1% 1% 3% 3% 7% 9% 4% 3% 1% 4% 1% 14% 2% 20% 11% 3% 6% 12% 3% 14% 10% 31% 17% 16% 18% 16% 9% 22% 12% 17% 32% 26% 18% 35% 37% 17% 34% 6% 15% 13% 11% 9% 18% 11% 7% 6% 9% 14% 18% 4% 7% 7% 5% 3% 13% 11% 8% 10% 11% 12% 2% 7% 10% 15% 10% 15% 8% 7% 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 +30% or better +20% +10% +5% Flat -5% -10% -20% -30% or worse 21% 39% 39% 36% 42% 42% 49% 32% 4% 6% 7% 3% 1% 4% 3% 24% 13% 8% 8% 13% 8% 23% 18% 34% 29% 23% 21% 26% 12% 14% 32% 2% 6% 5% 9% 1% 12% 6% 8% 5% 5% 15% 13% 6% 12% 3% 2% 1% 3% 5% 6% 5% 3% 3% 4% 6% 1% 8% 3% 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 +30% or better +20% +10% +5% Flat -5% -10% -20% -30% or worse 2% 1% 1% 3% Source: Powersports Business/ RBC Capital Markets Dealer Survey