Polaris 2011 Annual Report Download - page 48

side-by-side vehicles driven by industry leading product offerings. North American dealer inventories of ATVs
continued to decline, decreasing 33 percent from 2009. Our North American ORV unit retail sales to consumers
increased approximately 15 percent for 2010 compared to the 2009 with side-by-side vehicle retail sales
increasing in the mid 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 widened our market share leadership in off-road vehicles in both
North America and Europe in 2010 compared to 2009.
Snowmobile sales increased 48 percent to $280.1 million for 2011 compared to 2010. This increase is
primarily due to significantly reduced snowmobile dealer inventory levels entering the 2011 – 2012 selling
season compared to the prior year and the success of model year 2012 new product introductions resulting in
increased orders from dealers. Sales of snowmobiles to customers outside of North America, principally the
Scandinavian region and Russia, also experienced sales growth in 2011 compared to a year ago. Snowmobile
sales increased five percent to $188.9 million for 2010 compared to 2009. This increase was 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 2010 – 2011 selling season and the success of model year 2011 new product introductions.
Sales of On-Road Vehicles increased 79 percent to $146.3 million for 2011 compared to 2010. In 2011,
On-Road Vehicle sales are comprised of Victory and Indian brand motorcycles, as well as the Company’s SEV
sales of GEM and Goupil. The 2011 sales increase reflects increased Victory North American unit retail sales to
consumers of 22 percent and international Victory motorcycle sales up significantly during 2011 when compared
to 2010, resulting in continued market share gains. The North American heavyweight cruiser and touring
motorcycle industry increased mid-single digits percent during 2011. Consumer demand remains strong for
Victory’s newest models, the Cross Country Tour and the Victory Hard-Ball. The increase in On-Road Vehicle
sales in 2011 also benefited from the SEV acquisitions of GEM and Goupil in 2011. Sales of the On-Road
Vehicles Division in 2010, which primarily consist of Victory motorcycles,increased 55 percent to $81.6 million
during 2010 compared to 2009. The sales increase reflected 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.
Parts, Garments, and Accessories sales increased 19 percent to $408.2 million and 10 percent to $344.2
million for the full year 2011 and 2010, respectively. The increase in both 2011 and 2010 was primarily due to
increased ORV and Victory motorcycle related PG&A sales including strong international growth. During both
2011 and 2010, we continued to innovate with over 200 accessories introduced for new model year vehicles in
each respective year.
Sales by geographic region for the 2011, 2010 and 2009 year end periods were as follows:
For the Year Ended December 31,
($ in millions) 2011
Percent
of Total
Sales 2010
Percent
of Total
Sales
Percent
Change
2011 vs.
2010 2009
Percent
of Total
Sales
Percent
Change
2010 vs.
2009
United States ................ $1,864.1 70% $1,405.9 71% 33% $1,074.2 69% 31%
Canada ..................... 368.5 14% 279.3 14% 32% 239.3 15% 17%
Other foreign countries ........ 424.3 16% 305.9 15% 39% 252.4 16% 21%
Total Sales .............. $2,656.9 100% $1,991.1 100% 33% $1,565.9 100% 27%
Significant regional trends were as follows:
United States:
Sales in the United States for 2011 increased 33 percent compared to 2010, primarily resulting from higher
shipments in all product lines due to market share gains driven by innovative products. The United States
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