Polaris reported an increase in sales in its marine division for the first quarter, while profit margins narrowed because of supply-chain challenges and “inflationary pressures.”
Sales in the marine business — which includes the Bennington, Godfrey and Hurricane brands — increased to $211.5 million, from $198.7 million in the first quarter of 2021, Polaris said in its earnings report.
Gross profit margin in marine contracted to 22 percent, “with increased pricing offset by higher input costs related to supply-chain constraints,” the statement said. Gross profit margin was 23.4 percent in the corresponding prior-year quarter.
In its full-year outlook, Polaris said it forecasts overall sales to increase 12 to 15 percent from 2021 and expects profit to be up 11 to 14 percent.
In its overall results, which include off-road and on-road vehicles and aftermarket parts, net income dropped 47.9 percent to $69.9 million in the quarter, from $134.2 million a year prior.
CEO Mike Speetzen said overall demand for Polaris products is strong, enhanced by sales of parts, garments and accessories.
“While much of our focus centers on navigating the highly volatile and challenging supply-chain environment, demand for our industry-leading products and services remains healthy, as we continued to see high levels of presold orders and low cancellations, strong short- and long-term repurchase rates, and record levels of [parts, garments and accessories] attachments,” Speetzen said in the earnings report.
