Minnesota-based Polaris Industries reported a 23 percent increase in revenue for its motorcycle segment in the second quarter of fiscal 2016 and company executives said its brands will continue to gain market share throughout the rest of the year.
“Motorcycle retail continues to be a bright spot even with the major competitor’s aggressive investments in marketing and retail financing,” said Scott Wine, Polaris chairman and chief executive officer.
Polaris manufactures the Victory and Indian motorcycle brands, both of which compete with Milwaukee-based Harley-Davidson. Harley announced a $70 million investment in marketing and product development last year as it faced increased competition in recent years.
Wine said Victory sales were up in the high teens and Indian was up over 20 percent. In particular, he pointed to strong demand for Indian’s Chieftain and Roadmaster models.
Gross profit for the motorcycle segment increased in the second quarter by 63 percent to $39.8 million, even as net income for the company was down 30 percent to $71.2 million.
Polaris also revised its guidance for the motorcycle segment downward, citing weaker industry trends.
“We’re going to outperform the industry and we’re going to continue to gain market share,” Wine said.
The company also recently announced a recall of more than 18,000 Indian motorcycles from model years 2014 to 2016. In the event of an ignition misfire, unburned fuel can pass into certain parts of the exhaust system, potentially posing a fire hazard.