"In
"And when we look at the big picture, I totally understand analysts or investors or even people who are concerned about the macroeconomic — but we don't see it."
Two decades after it spun off from
The pandemic prompted a brief lull, but then propelled demand for powersport vehicles across the globe as consumers sought to rip and roam outdoors.
In its latest quarter, strong Sea-Doo and off-road vehicle sales drove up total profits by 28 per cent year over year, beating analyst expectations. Even with COVID-19 in the rear-view mirror, the Ski-Doo maker ramped up revenues by more than a third to
On a call with analysts Thursday, Boisjoli said the company outpaced the North American powersports industry, where sales dipped, thanks to consumer demand that was dented but not broken by inflation and higher interest rates.
"The consumer would pay eight per cent more (year over year) on a monthly payment. That factors in inflation, interest rates, etc. So yes, it's higher. But on the other side, now we are offering promotions that's certainly helping to drive retail," he said.
The bigger price tags are not a "significant" deterrent for buyers, Boisjoli added, but do allow BRP to cover higher costs.
"Finally we're getting ahead of inflation. So all the pricing action we took over the last several years is now more than offsetting the inflation."
The CEO said he still expects to see market share gains — particularly with all-terrain vehicles — fuelled partly by new products despite a "flat industry this year."
Sea-Doo sales were up by about a third from last year, while side-by-side vehicle and three-wheeled motorcycle sales also increased, the company said.
Boisjoli reiterated the BRP's outlook for the fiscal year, which forecasts a revenue rise of between nine per cent and 12 per cent —
"North American industry retail sales had a slow start this year with unfavourable weather but appear to have accelerated recently," he said in a note to investors. BRP's retail sales rose by a quarter in April and 50 per cent in May relative to those months in 2022.
"Additional demand indicators also appear healthy with stronger than expected early bookings for snowmobiles and a sustained level of new customers entering the industry," Landry said.
However, BRP lowered its guidance for the marine segment due to supply issues that lowered availability and decreased retail boat sales by 39 per cent year over year. A late spring in the
Boisjoli said in the interview he still expects to roll out the company's first electric snowmobiles to select outfitters in December, and to launch electric motorcycles and a new electric hydrofoil board — the Sea-
On Thursday, the company reported a first-quarter profit of
Profits amounted to
Revenue totalled
Normalized earnings amounted to a profit of
This report by The Canadian Press was first published
Companies in this story: (TSX:DOO, TSX:BBD.B)
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