Polaris Q1 Sales Fall, CEO Warns Of 'Consumer Uncertainty' And 'Dynamic Tariff Environment' As Near-term Hurdles

Polaris Inc. PII reported its first quarter 2025 results on Tuesday.

Polaris reported a first-quarter adjusted loss of 90 cents per share, beating the street view of 91 cents loss. Quarterly sales of $1.54 billion (down 12% year over year) were in line with the analyst consensus estimate.

Primary factors affecting first-quarter sales were lower volume due to planned shipment reductions and lower net pricing driven by higher promotional spend.

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North America sales of $1.290 billion (down 11% year over year) represented 84 percent of total sales. International sales of $246 million (down 16% year over year) represented 16% of total sales.

“While consumer uncertainty and a dynamic tariff environment are near-term hurdles, we are thoughtfully navigating these challenges,” said Mike Speetzen, Chief Executive Officer of Polaris. However, the company noted minimal first-quarter tariff impact due to timing.

The adjusted gross profit margin of 16.6% decreased by 242 basis points, primarily due to higher promotional activity and negative foreign exchange.

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Operating expenses were $303 million in the first quarter of 2025 compared to $313 million in the year-ago period.

Polaris exited the quarter with cash and equivalents worth $291.7 million and inventories of $1.748 billion.

Outlook: The company introduced second-quarter 2025 sales guidance of $1.6 billion to $1.8 billion versus the $1.820 billion estimate.

Polaris said it is withdrawing the full-year 2025 guidance due to trade and economic uncertainty.

Price Action: PII shares traded higher by 0.27% to $33.83 on Tuesday.

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