Polaris 2015 Annual Report Download - page 53

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Snowmobiles
Snowmobiles sales, inclusive of PG&A sales, decreased three percent to $404.5 million for 2015 compared to
2014. This decrease is primarily due to lower wholegoods and PG&A sales, partially offset by the acquisition
of Timbersled in early 2015. Low snowfall levels in North America and currency pressures, were the primary
drivers of the decreased sales for 2015. Retail sales to consumers for the 2015-2016 season-to-date period
through December 31, 2015, decreased mid-teens percent, however we realized North American market share
gains for the same season-to-date period. Sales of snowmobiles to customers outside of North America,
principally within the Scandinavian region and Russia, decreased over 20 percent in 2015 as compared to 2014
due primarily to economic weakness in the region. The average unit sales price in 2015 increased two percent
over 2014’s per unit sales price, primarily due to a favorable mix of premium snowmobiles.
Snowmobiles sales, inclusive of PG&A sales, increased five percent to $418.3 million for 2014 compared to
2013. This increase is primarily due to the early snowfall and colder weather in North America and the
success of the new AXYS chassis platform models introduced in 2014. Retail sales to consumers for the
2014-2015 season-to-date period through December 31, 2014, increased high-teens percent. Sales of
snowmobiles to customers outside of North America, principally within the Scandinavian region and Russia,
decreased 28 percent in 2014 as compared to 2013 due primarily to economic weakness in the region. The
average unit sales price in 2014 was approximately flat when compared to 2013.
Motorcycles
Sales of Motorcycles, inclusive of PG&A sales, which is comprised of Victory and Indian motorcycles, and the
moto-roadster Slingshot, increased 67 percent to $698.3 million for 2015 compared to 2014. The increase in
2015 sales is due to the continued high demand for Indian motorcycles and Slingshot, but was negatively
impacted by constrained product availability during the first three quarters of 2015 at our Spirit Lake, Iowa
production facility. North American industry retail sales, 900cc and above (including Slingshot), increased
low-single digits percent in 2015 compared to 2014. Over the same period, Polaris North American unit retail
sales to consumers increased approximately 60 percent, driven primarily by continued strong retail sales for
Indian motorcycles and Slingshot. North American Polaris motorcycle dealer inventory increased over
50 percent in 2015 versus 2014 levels primarily due to stocking of the Indian motorcycles and Slingshot. Sales
of motorcycles to customers outside of North America increased approximately 40 percent in 2015 compared
to 2014. The average per unit sales price for the Motorcycles segment in 2015 decreased two percent
compared to 2014 due to the increased sales of our mid-sized motorcycles.
Sales of Motorcycles, inclusive of PG&A sales, increased 59 percent to $418.5 million for 2014 compared to
2013. The increase in 2014 sales is due to the continued high demand for Indian motorcycles including the
new 2015 Roadmaster and the Company’s first mid-sized motorcycle, Scout, and initial shipments of the
Slingshot. North American industry heavyweight cruiser and touring motorcycle retail sales (which excludes
Slingshot) increased low-single digits percent in 2014 compared to 2013. Over the same period, Polaris North
American unit retail sales to consumers increased almost 40 percent, driven primarily by continued strong
retail sales for Indian motorcycles and initial retail sales of Slingshot. North American Polaris motorcycle
dealer inventory increased mid-teens digits percent in 2014 versus 2013 levels primarily due to stocking of the
Indian motorcycles and Slingshot. Sales of motorcycles to customers outside of North America increased
approximately 70 percent in 2014 compared to 2013. The average per unit sales price for the Motorcycles
division in 2014 increased nine percent compared to 2013 due to the increased sales of higher priced Indian
motorcycles and initial sales of Slingshot.
Global Adjacent Markets
Global Adjacent Markets is comprised of Aixam, GEM and Goupil, as well as all commercial, BRUTUS↧ and
government applications sold outside of our traditional dealer channels. Global Adjacent Markets sales
decreased two percent to $312.1 million for 2015 compared to 2014. The decrease in sales is primarily due to
ongoing currency pressures, as the number of units sold in our Global Adjacent Markets segment increased
compared to 2014. However, sales for our government/defense business decreased compared to 2014. The
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