New for 2016 is the Commander Mossy Oak Hunting Edition which is targeting the hunting segment, an untapped segment for Can Am according to management.
BRP, manufacturer of Can-Am side-by-sides, announced their first quarter results for fiscal year 2016 which ended April 30, 2015. The following is a summary of the earnings call as it relates to the STOV market. Financial figures are in Canadian dollars and comparisons are between first quarter FY2016 and first quarter FY2015 unless otherwise noted.
- Revenues for the quarter increased 18% to $898.1 million compared to the first quarter in FY2015 and were slightly better than planned
- Revenue from Year-Round Products that include side-by-sides, ATVs and the Spyder increased 8.9% from $365.4 to $398.1
- Year-Round Products was driven by the introduction of the Maverick X ds side-b-side models and overall industry growth
- NA side-by-side retail sales up mid-single digits % for the first 10 months of the model year starting last July
- Management estimates the NA side-by-side market increased model year to date mid-teens % with growth in the utility and sport categories but the recreation/utility segment (Can-Am Commander) is shrinking
- Can-Am is behind plan in the the sport category but 2016 model year includes a higher horsepower models including one that fills in a lower price point
- Management reports increased competition in the NA side-by-side market in the last six months
- BRP is targeting the hunting segment, an untapped potential market for Can-Am, with both ATVs and UTVs and their new partnership with Mossy Oak which produces camouflage designs
- Mossy Oak will be using Can Am products when showcasing their designs
- Management estimates that there are 15 million hunters in NA and a high percentage use ATVs and UTVs
- Comments by management indicate that BRP will enter the utility side-by-side segment in the relatively near future
- Management expects Year-Round Products to grow revenue by 7-11% for FY2016