{"id":10281,"date":"2020-09-08T12:27:06","date_gmt":"2020-09-08T12:27:06","guid":{"rendered":"https:\/\/smallvehicleresource.com\/blog\/?p=10281"},"modified":"2020-09-08T12:27:10","modified_gmt":"2020-09-08T12:27:10","slug":"can-am-q2-earnings","status":"publish","type":"post","link":"https:\/\/smallvehicleresource.com\/blog\/2020\/09\/08\/can-am-q2-earnings\/","title":{"rendered":"Can-Am Q2 Earnings"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"505\" src=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2019\/06\/Can-Am-Maverick-X3-X-rs-Turbo-RR.jpg\" alt=\"The new 2020 Maverick X3 X rs Turbo RR with a 195 hp engine\" class=\"wp-image-7005\" srcset=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2019\/06\/Can-Am-Maverick-X3-X-rs-Turbo-RR.jpg 800w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2019\/06\/Can-Am-Maverick-X3-X-rs-Turbo-RR-300x189.jpg 300w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2019\/06\/Can-Am-Maverick-X3-X-rs-Turbo-RR-768x485.jpg 768w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2019\/06\/Can-Am-Maverick-X3-X-rs-Turbo-RR-475x300.jpg 475w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption>The new Maverick X3 X rs Turbo RR is one of several 2020 Maverick models that are powered by the new 195 hp Turbo RR engine.<\/figcaption><\/figure>\n\n\n\n<p>Can-Am recently reported their earnings for Q2 fiscal year 2021. North American retail sales were stronger than expected across all categories given the COVID pandemic. Management reported revenues of $1,233.3 million, a decrease of $226.2 million or 15.5% which was primarily related to the COVID related temporary suspension of production. Revenues for the North American Year Round segment, which includes side-by-sides and ATVS, decreased by $113.4 million, or 15.4% to $621.2 million. Revenues decreased despite strong retail sales because sales were drawn from existing dealer inventory while production was lowered because of Covid.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Retail Exceeds Expectations<\/h2>\n\n\n\n<p>Similar to reports from Polaris, Can-AM Q2 earnings had very strong sales  for side-by-sides and ATVs. Consumers turned to off-road riding as a socially distant alternative activity during the pandemic. In addition, discretionary income from money not spent during Covid inactivity drove sales. Similar to Polaris, Can-Am also attracted a lot of new powersports customers, but lost market share as dealer inventory was depleted while production greatly reduced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can-Am Q2 Earnings Highlights<\/h2>\n\n\n\n<p>The following are some of the highlights from the earnings call that are related to the small, task-oriented vehicle market.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Can-Am powersports retail sales were up 40% in North America (NA) and were strong in all categories<\/li><li>Company is constructing a new facility in Juarez, Mexico to meet side-by-side vehicle demand ??? should be online in fall 2021<\/li><li>Management reports doing????better than expected when first going into Covid<\/li><li><a rel=\"noreferrer noopener\" aria-label=\"Can-am NA side-by-side (opens in a new tab)\" href=\"https:\/\/www.smallvehicleresource.com\/search\/manufacturer\/Can-Am\" target=\"_blank\">Can-am NA side-by-side<\/a> retail up high 50% compared to industry up low 70%<\/li><li>Lost market share because high product demand and production shutdown depleted inventory.<\/li><li>NA dealer powersports inventory was down 51%<\/li><li>People turned to powersports in their free time under the restrictions of the pandemic<\/li><li>Can-Am attracted new powersports customers and customers from other brands with off-road vehicles leading the way ??? new to BRP customers up 51% overall for the quarter with up 74% for off-road<\/li><li>Usually around 10-15% are new customers<\/li><li>For the season, NA off-road retail increased low 20% for industry with Can-Am side-by-side up low 40%<\/li><li>Side-by-side retail strong internationally up almost 50% in EMEA and ~30% in Asia Pacific<\/li><li>Total NA dealer inventory down 51% and this represents down $1 billion of inventory<\/li><li>Management reports loss of maybe 1-2 points of market share as depleted inventory drove customers to other brands<\/li><\/ul>\n\n\n\n<p><a rel=\"noreferrer noopener nofollow\" aria-label=\"Learn more:  Seekingalpha.com (opens in a new tab)\" href=\"https:\/\/seekingalpha.com\/article\/4371168-brp-inc-dooo-ceo-jos-boisjoli-on-q2-2021-results-earnings-call-transcript\" target=\"_blank\">Learn more:  Seekingalpha.com<\/a> (Earnings call transcript)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">SVR&#8217;s Take<\/h2>\n\n\n\n<p>This was a good quarter for Can-Am and the industry in general. New customers with money to spend and in search for Covid safe activities turned to powersports and off-road riding in particular. The large portion of new to powersports customers gives the companies a chance to create more lifetime off-road customers as well as cross sell them other powersports products. It will be interesting to see if the strong consumer demand can be maintained going forward.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Can-Am recently reported their earnings for Q2 fiscal year 2021. North American retail sales were stronger than expected across all categories given the COVID pandemic. Management reported revenues of $1,233.3 million, a decrease of $226.2 million or 15.5% which was &hellip; <a href=\"https:\/\/smallvehicleresource.com\/blog\/2020\/09\/08\/can-am-q2-earnings\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,14,23,1829,27],"tags":[228,2782],"class_list":["post-10281","post","type-post","status-publish","format-standard","hentry","category-management","category-market-trends","category-sales-figures","category-side-by-side-2","category-utility-vehicles","tag-can-am","tag-covid"],"_links":{"self":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/10281"}],"collection":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/comments?post=10281"}],"version-history":[{"count":1,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/10281\/revisions"}],"predecessor-version":[{"id":10282,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/10281\/revisions\/10282"}],"wp:attachment":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/media?parent=10281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/categories?post=10281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/tags?post=10281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}