Harley-Davidson And Polaris Opposite Seasonal Revenue Surges

Seasonality

In the US, like in most countries, the revenue of motorcycle/ATV/snowmobile manufacturers is closely related with the riding season. As this chart demonstrates revenue of the 2 US manufacturers surge at different seasons. Harley-Davidson revenues shoot up in spring and summer. But because Polaris produces off-road vehicles and snowmobiles in addition to heavyweight motorcycles, the company posts its highest revenue during the winter. To better adjust to these sales fluctuations, both companies abandoned the old method that has consisted in shipping in advance vehicles to dealers to build up inventories. Instead, the new strategy is to be able on a short notice to increase production just before and during peak sales months.

Called flexible production, surge production, or lean manufacturing, the new method implies relying on having a more flexible workforce able on a short notice to match model production to customers’ demands and customization preferences. As the Victory and Indian brands become more popular, it can be expected that Polaris revenue growth during spring and summer is going to increase, helping the company to reduce the seasonality of its overall sales and revenue.

Zipper's

8 Responses to “Harley-Davidson And Polaris Opposite Seasonal Revenue Surges”


  1. 1 18Bravo Mar 19th, 2014 at 8:45 am

    I like to think of my investments as a yo-yo on an escalator. Ultimately theyshould finish higher than they started. The above graph clearly demonstrates why I’m happy I went with Polaris.

  2. 2 Terence Tory Mar 19th, 2014 at 9:36 am

    18Bravo,That’s unless you short them shares and make money by them going lower.

  3. 3 Jeff Keizer Mar 19th, 2014 at 11:20 am

    It shows that Polaris was a better investment during these last years and will probably be during the next years because Polaris is more diversified. PII or HOG? I pick PII.

  4. 4 Shifter Mar 19th, 2014 at 6:30 pm

    Bought Polaris when they bought Indian. So far, great capital gain.

  5. 5 Terence Tory Mar 19th, 2014 at 7:20 pm

    Shifter,it’s not a capital gain unless you sell them at a profit.Right now it’s a paper gain.

  6. 6 Toby Mar 20th, 2014 at 10:17 am

    Polaris’ bike sales are a small portion of their overall sales. Bike sales are LESS than clothing and accessory sales for this company. Even if bike volume quadrupled it would be a small portion of Polaris’ overall global sales.

  7. 7 Steve Hog Radio Show Producer Mar 20th, 2014 at 12:31 pm

    Glad I jumped on and bought a few shares of Polaris just after they started working on the new Indian.

    Polaris is very diversified with tentacles into all sorts of vehicles. If the military market slows they have the snow market. If the snow market slows they have the hunting market and they will continue to grow the cycle side. Will be interesting to see how their licensed market grows as the Indian brand becomes bigger.

    Quite possibly they can tap into the non rider market who are already buying H-D branded gear. Maybe a Indian branded Jeep or Dodge Ram truck.

  8. 8 James just another crazy Kiwi Mar 20th, 2014 at 3:04 pm

    I have heard that the Indians are interested in Polaris…maybe they want to own the Indian name

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