Polaris 2010 Annual Report Download - page 40

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30 percent range year over year and ATV retail sales about flat with the prior year. Given the growth in our ORV
business worldwide, we have widened our market share leadership in off-road vehicles in both North America and
Europe in 2010 compared to 2009.
ORV sales of $1,021.1 million in 2009 decreased 22 percent from 2008. This decrease reflects the overall
weakness in the consumer retail environment, more dealers transitioning to MVP, which during the initial startup
phase inherently requires lower dealer inventory levels, and our continued commitment to helping dealers reduce
their core ATV inventory. North American dealer inventories of core ATVs were down significantly at year end
2009, declining 35 percent when compared to 2008 levels. North American retail sales for ORVs decreased in the
mid-teens percentage range for the full year 2009 compared to 2008. The decrease was directly related to the overall
weak economic environment. However, we again gained market share during 2009 compared to 2008, an indication
of the acceptance in the marketplace of our new product introductions in recent years.
Snowmobile sales increased five percent to $188.9 million for 2010 compared to 2009. This increase is
primarily due to an increase in retail sales resulting from heavy amounts of early snowfall in many key riding areas
in North America in the 2011 season-to-date period and the success of model year 2011 new product introductions.
Sales of snowmobiles to customers outside of North America, principally the Scandinavian region, also experienced
sales growth in 2010 compared to a year ago. Snowmobile sales decreased 13 percent to $179.3 million for 2009
compared to 2008. The decrease reflected the weakness in the consumer retail environment both in North America
and international markets.
Sales of the On-Road Vehicles Division, which primarily consists of Victory motorcycles,increased 55 percent
to $81.6 million during 2010 compared to 2009. The sales increase reflects increased Victory North American unit
retail sales to consumers of over 20 percent and international Victory motorcycle sales up significantly during 2010
when compared to 2009, resulting in continued market share gains. The North American heavyweight cruiser and
touring motorcycle industry remained weak during 2010. However, consumer demand remains strong for Victory’s
new touring models, the Cross Country and Cross Roads and in January 2011 we introduced the Victory High-Ball,
a custom cruiser aimed at the younger rider looking for a classic factory custom motorcycle. North American dealer
inventory of Victory motorcycles declined approximately 30 percent in 2010 compared to 2009 levels. Sales of the
on-road Vehicles Division decreased 44 percent during 2009 compared to 2008 to $52.8 million. The decrease
reflected the weak heavyweight cruiser and touring motorcycle industry and our continued planned reduction in
shipments of Victory motorcycles to dealers in North America to assist their efforts to further reduce inventory
levels. North American dealer inventory of Victory motorcycles was 32 percent lower at year end 2009 compared to
2008 levels.
Parts, Garments, and Accessories sales increased 10 percent during 2010 compared to 2009 to $344.2 million
primarily due to increased ORV, Victory motorcycle and international related PG&A sales. During 2010, we
continued to innovate with over 300 accessories introduced for new model year vehicles. PG&A sales decreased
nine percent during 2009 compared to 2008 to $312.7 million primarily due to the lower retail sales of our vehicles
during 2009. However, the decline in sales was less than the overall company sales decline as the large installed base
of our owners remain loyal to our brand and continue to purchase PG&A for their products.
Sales by geographic region for the 2010, 2009 and 2008 year end periods were as follows:
($ in millions) 2010
Percent
of Total
Sales 2009
Percent
of Total
Sales
Percent
Change
2010 vs.
2009 2008
Percent
of Total
Sales
Percent
Change
2009 vs.
2008
For the Year Ended December 31,
United States ............... $1,405.9 71% $1,074.2 69% 31% $1,371.1 70% ⫺22%
Canada ................... 279.3 14% 239.3 15% 17% 273.0 14% ⫺12%
Other foreign countries ....... 305.9 15% 252.4 16% 21% 304.2 16% ⫺17%
Total Sales............... $1,991.1 100% $1,565.9 100% 27% $1,948.3 100% ⫺20%
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