BRP reported its financial results for the three months ended April 30. First quarter revenues decreased CAD$153 million ($113.2 million), or 7.7%, to CAD$1.8 billion ($1.33 billion) year-over-year, largely due to a soft powersports market. The drop in revenues was attributed to a lower volume sold across most product lines, as BRP continued to reduce network inventory levels in seasonal products.
On April 1, the company announced a definitive agreement to sell its Telwater brand and closed the sale of Alumacraft’s assets May 1.
“We delivered a sound first-quarter performance despite the current context, with results in line with expectations,” president and CEO José Boisjoli said in a statement.
Retail performance was flat in North America. Gross profit decreased CAD$126.9 million ($94 million), or 24.3%, to CAD$394.8 million ($292 million) for the first quarter. Gross profit margin percentage decreased 470 basis points to 21.4%. Net income increased CAD$118.5 million ($88 million), or 278.8%, to CAD$161 million ($119 million). Net loss decreased CAD$39 million ($29 million), or 78.2%, to CAD$10.9 million ($7.9 million) year-over-year.
BRP declined to issue guidance for the full year, citing uncertainty around tariffs and consumer demand.
“Given the uncertainty, we are still refraining from making financial projections at this time,” Boisjoli said in the statement. “In the short-term, although demand remains soft due to a challenging macro environment, our strong product portfolio and leaner inventory levels position us favorably for a rebound. Over the longer term, our decision to double down on our core powersports activities, combined with our team’s ingenuity and our commitment to pushing technology and innovation, provide the foundations for sustained leadership.”
