Polaris Inc. (NYSE:PII) Q4 2022 Earnings Call Transcript

So I think you’ll see that dynamic. And then I think on the share side, it’s — we’re continuing to make progress, ship and RANGER. And so you’ll see that build through the year as we look to take share back in that market where we lost share, primarily due to under-shipping what our historic share levels have been.

Xian Siew: Okay. Got it. And then maybe just 1 quick 1 on pricing. It sounds like maybe not so much of a benefit this coming year, but still holding. But at the same time, it sounds like are ASPs obviously higher than 2019. I know there’s some mix in there, but I guess are you seeing any pushback on pricing? It sounds like no, it sounds like the consumer continues to accept your pricing increase? Is that fair? Or are you seeing any kind of — anything on the affordability equation?

Robert Mack: Yes. I mean there’s certainly higher promo in ’23 versus ’22 and some of that is designed to counterbalance particular units where we feel like we got maybe a little ahead of the curve on the price ratio relative to the competition, but that’s all factored into our guidance and how we built the plan for the year. It really is ASP driven, and I think folks underestimate this change in mix, both on and the mix to crew and then the — because it’s a kind of a double benefit, right? It’s a mix to crew, which are larger, more expensive vehicles and then a mix to the premium end of the multi-passenger vehicles. and our increase in like factory install and things where we get much higher PG&A capture. So that’s really the bulk of the driver in the ASPs.

Operator: Next question comes from Scott Stember with MKM Partners.

Scott Stember: Just 1 for me. PG&A. You guys are talking about how this would most likely be the most resilient part of your business in ’23. But can you break out how much of that business is, I guess, not attachment based and how much is brake fix and more sustainable in a tougher economic environment?

Robert Mack: Yes. We don’t — we haven’t historically given out those breakdowns on the business. But what we have historically seen, and we saw it through the course of the pandemic, but people couldn’t get units, they were fixing their old units, riding levels are staying high. So we’ve seen continued good sales of kind of more of the maintenance parts. And the other dynamic that happens when people can’t get new units, whether it’s availability or in the event of a downturn, the their interest and willingness to pay for to buy a new unit, we see them come back and accessorize their older units. So we don’t expect or know any reason why that trend would change, but we don’t really break out of how the G&A business falls between to and upgrade.

Operator: This concludes our question-and-answer session and concludes the conference call. Thank you for attending today’s presentation. You may now disconnect.