Polaris Inc (PII) 2024 Q1 法說會逐字稿

Good day, and welcome to the Polaris First Quarter 2024 Earnings Conference Call and Webcast. (Operator Instructions) Please note, today's event is being recorded. I'd now like to turn the conference over to J.C. Weigelt, Vice President, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Polaris 2024 年第一季財報電話會議和網路廣播。 （操作員說明）請注意，今天的活動正在錄製中。現在我想將會議交給投資者關係副總裁 J.C. Weigelt。請繼續。

Thank you, Rocco, and good morning or afternoon, everyone. I'm J.C. Weigelt, Vice President of Investor Relations at Polaris. Thank you for joining us for our 2024 first quarter earnings call. We will reference a slide presentation today, which is accessible on our website at ir.polaris.com. Joining me on the call today are Mike Speetzen, our Chief Executive Officer; and Bob Mack, our Chief Financial Officer. Both have prepared remarks summarizing the first quarter as well as our expectations for the remainder of 2024, then we'll take your questions.

謝謝羅科，大家早安或下午好。我是 J.C. Weigelt，Polaris 投資者關係副總裁。感謝您參加我們的 2024 年第一季財報電話會議。今天我們將參考幻燈片演示，您可以在我們的網站 ir.polaris.com 上存取該演示文稿。今天和我一起參加電話會議的是我們的執行長 Mike Speetzen；和我們的財務長鮑伯·麥克。雙方都準備了總結第一季的言論以及我們對 2024 年剩餘時間的預期，然後我們將回答您的問題。

During the call, we will be discussing various topics, which should be considered forward-looking for the purpose of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projections in the forward-looking statements. You can refer to our 2023 10-K for additional details regarding risks and uncertainties. All references to the first quarter actual results and 2024 guidance are for our continuing operations and are reported on an adjusted non-GAAP basis, unless otherwise noted. Please refer to our Reg G reconciliation schedules at the end of the presentation for the GAAP to non-GAAP adjustments. Now I will turn it over to Mike Speetzen. Go ahead, Mike.

在電話會議期間，我們將討論各種主題，就 1995 年《私人證券訴訟改革法案》而言，這些主題應被視為前瞻性的。您可以參閱我們的 2023 10-K，以了解有關風險和不確定性的更多詳細資訊。除非另有說明，所有對第一季實際業績和 2024 年指引的引用均適用於我們的持續經營業務，並按調整後的非公認會計準則 (non-GAAP) 基礎進行報告。請參閱簡報末尾的 Reg G 調整表，以了解 GAAP 與非 GAAP 的調整。現在我將把它交給 Mike Speetzen。繼續吧，麥克。

Thanks, J.C. Good morning, everyone, and thank you for joining us today. First quarter performance largely put out consistent with our expectations. You'll recall that headed into the year, we expected the first quarter to be one of the most challenging quarters given the difficult year-over-year comparisons and our plan to actively manage dealer inventory coupled with a more normalized production delivery of snowmobiles. Q1 also saw us focused on continuing to execute the early stages to improve delivery, increase efficiencies and drive down operating costs in our larger manufacturing facilities.

謝謝，J.C. 大家早安，謝謝您今天加入我們。第一季業績基本上符合我們的預期。您可能還記得，進入今年，我們預計第一季將是最具挑戰性的季度之一，因為同比比較困難，我們計劃積極管理經銷商庫存，並更加規範地生產雪地摩托車。第一季我們也專注於繼續執行早期階段，以改善交付、提高效率並降低大型製造工廠的營運成本。

Sales in the first quarter were down 20%, which was in line with our expectations and adjusted EPS came in above our expectations given better performance on cost management. While we're pleased with our financial performance, we did experience the worst snowmobile season we've seen in 13 years, driven by a lack of snow across much of North America. Overall, it was great to see our products take share in ORV, motorcycles and marine. Our new product innovation is resonating with customers, which will drive future share gains. That, coupled with our operational improvements, makes me very optimistic about the direction of the business.

第一季銷售額下降 20%，符合我們的預期，由於成本管理表現較好，調整後的每股盈餘高於我們的預期。雖然我們對自己的財務表現感到滿意，但由於北美大部分地區缺雪，我們確實經歷了 13 年來最糟糕的雪地摩托車季節。總的來說，很高興看到我們的產品在 ORV、摩托車和船舶領域佔據份額。我們的新產品創新引起了客戶的共鳴，這將推動未來的份額成長。再加上我們營運的改進，讓我對業務的方向非常樂觀。

North America retail was down 10%, driven by a weak snow season, but was up 3% when you exclude snow. Utility off-road vehicles continue to lead the way with strong demand for our RANGER lineup. Recreation was down, while On-Road was up for the quarter, driven by strength in North American markets, somewhat offset by international market weakness.

由於雪季疲軟，北美零售業下降了 10%，但如果排除雪的話，零售業則增加了 3%。多功能越野車持續引領潮流，對我們的 RANGER 系列產品有著強勁的需求。本季娛樂業務下降，而公路業務則有所成長，這主要是受到北美市場強勁的推動，但在一定程度上被國際市場疲軟所抵消。

Within Marine, we believe retail was flat during the first quarter using our internal registration data as we await the March data from SSI. We continue to play offense when it comes to innovation. Our RZR XP, Polaris Expedition and RANGER XD products are dealers in garnering much attention for their attractive features, cutting-edge technology with Ride Command+ and industry-leading capabilities. And we recently added to this launch with the new model year full-size RANGER portfolio and the new Indian motorcycle Scout portfolio. Once again, we delivered industry-leading innovation, further reinforcing our position as the global leader in powersports.

在 Marine 內部，我們在等待 SSI 的 3 月數據時，使用我們的內部註冊數據認為第一季零售業持平。在創新方面，我們持續進攻。我們的 RZR XP、Polaris Expedition 和 RANGER XD 產品因其極具吸引力的功能、採用 Ride Command+ 的尖端技術以及行業領先的功能而備受經銷商關注。我們最近在此次發布中新增了新車型年全尺寸 RANGER 產品組合和新的 Indian 摩托車 Scout 產品組合。我們再次提供了業界領先的創新，進一步鞏固了我們作為動力運動領域全球領導者的地位。

Following through on our commitment to actively managed dealer inventory, we flexed inventory up in categories where we've seen consistent growth, such as Off-Road utility and new product models. We also reduced shipments to help better manage dealer inventory in categories that have been underperforming, such as Off-Road recreation and Marine. I'd also remind you that we've been doing this for several quarters. This approach is driven by our ability to adjust to trends we've seen materializing over multiple quarters, aided by our retail flow management system, which is one of the most sophisticated dealer inventory tools in the industry, allowing us to quickly adapt our production and delivery system to current demand environment.

遵循我們對積極管理經銷商庫存的承諾，我們在持續成長的類別中增加了庫存，例如越野實用程式和新產品型號。我們還減少了發貨量，以幫助更好地管理表現不佳的類別（例如越野娛樂和船舶）的經銷商庫存。我還想提醒您，我們已經這樣做了幾個季度。這種方法的驅動力是我們能夠適應多個季度出現的趨勢，並得到我們的零售流程管理系統的幫助，該系統是業內最先進的經銷商庫存工具之一，使我們能夠快速調整我們的生產和銷售。

The system gives us near real-time access to our dealer inventory by region, by product, by dealer. We use this data in conjunction with conversations with our dealers to actively manage inventory to enable dealers to have the right inventory to efficiently run their business. Adjusted gross profit margin was down 248 basis points, driven by elevated promotions that began last year as well as higher warranty costs. Partially offsetting these headwinds was the continued progress to improve our operations. This operational improvement enabled us to more than offset deleverage in the quarter given the lower volumes.

該系統使我們能夠按地區、按產品、按經銷商近乎即時地存取經銷商庫存。我們使用這些數據並結合與經銷商的對話來主動管理庫存，使經銷商能夠擁有正確的庫存來有效地開展業務。由於去年開始的促銷活動增加以及保固成本上升，調整後毛利率下降了 248 個基點。改善我們營運的持續進展部分抵消了這些不利因素。鑑於交易量較低，這種營運改善使我們能夠抵消本季的去槓桿化。

We're targeting $150 million of operational savings this year, and while it's still early in the year, our progress thus far aligns with this objective. During the first quarter, we saw meaningful savings on material costs and logistics and our Huntsville manufacturing facility made tremendous strides in reducing indirect labor and rework costs and achieve significant improvements in execution against their build schedule.

我們今年的目標是節省 1.5 億美元的營運成本，儘管現在還為時過早，但我們迄今為止所取得的進展與這一目標相符。在第一季度，我們看到了材料成本和物流成本的顯著節省，我們的亨茨維爾製造工廠在減少間接勞動力和返工成本方面取得了巨大進步，並在構建計劃的執行方面取得了顯著改進。

We are also seeing significant improvements in Monterrey, where the production line that created significant issues for us in delivering Expedition and RANGER XD in the second half of 2023. It's now operating at the targeted output rate, and we're seeing significant improvements in efficiencies starting to materialize within the facility more broadly.

我們還看到蒙特雷的顯著改進，那裡的生產線在 2023 年下半年交付 Expedition 和 RANGER XD 時給我們帶來了重大問題。開始在設施內更廣泛地實現。

In summary, it was encouraging to see results that were largely in line to slightly above our original expectations, recognizing there were a number of headwinds we had entering the year. As we proceed through the remaining 3 quarters of the year, we're expecting further share gains given the significant innovation we've introduced over the past few years and we remain committed to actively manage dealer inventory and drive efficiencies within the business. I'm incredibly proud of our team's execution in the first quarter and want to thank them for their continued dedication and focus.

總之，看到結果基本上符合我們最初的預期，略高於我們最初的預期，這是令人鼓舞的，因為我們認識到今年進入時遇到了許多阻力。在今年剩下的三個季度中，鑑於我們在過去幾年中推出的重大創新，我們預計份額將進一步增長，並且我們仍然致力於積極管理經銷商庫存並提高業務效率。我對我們團隊第一季的執行力感到非常自豪，並感謝他們持續的奉獻和專注。

Turning to more detail on retail. Broadly speaking, retail trends remain consistent with what we've seen over the past year with the exception being snowmobiles. Recreation Off-Road vehicles were down for the sixth straight quarter. As we've shared previously, we view the purchase of these vehicles as more discretionary and more sensitive to economic conditions such as elevated interest rates.

轉向零售業的更多細節。總體而言，零售趨勢與我們過去一年所看到的保持一致，但雪地摩托車除外。休閒越野車連續第六個季度下降。正如我們之前所分享的，我們認為購買這些工具更具自由裁量權，並且對利率上升等經濟狀況更加敏感。

Our utility portfolio, consisting of RANGER side-by-sides and ATVs continue to see strength as reflected in our mid-single-digit increase in retail. As a reminder, this category is far less discretionary and plays an important part in work applications for ranchers, farmers, owners of multiple acres of land as well as commercial settings and makes up approximately 65% of our Off-Road segment sales.

我們的公用事業產品組合（包括 RANGER 並排和全地形車）持續保持強勁勢頭，這反映在零售業的中個位數成長上。需要提醒的是，這一類別的隨意性要小得多，在牧場主、農民、多英畝土地所有者以及商業環境的工作申請中發揮著重要作用，約占我們越野細分市場銷售額的65 %。

As expected, promotions were elevated across the industry during the quarter and we expect a higher promotional environment to continue through 2024. This impacts each of our segments as the industry grapples with elevated interest rates. For Polaris and the industry, this impact is more noticeable within the Marine and Off-Road recreational categories where we've seen weak retail for several quarters, resulting in elevated inventory.

正如預期的那樣，本季度整個行業的促銷活動有所增加，我們預計更高的促銷環境將持續到 2024 年。對於北極星和整個產業來說，這種影響在海洋和越野休閒類別中更為明顯，我們已經看到零售業連續幾季疲軟，導致庫存增加。

Hearing from dealers, they continue to view all powersports inventory is too high and are actively looking for opportunities to manage inventory with strategies ranging from reducing the number of OEMs they carry to adding additional promotional dollars from their own wallet as well as taking fewer shipments from OEMs. Every dealer is dealing with their own unique version of these industry issues. And while we can't influence other OEMs, we do believe that in total, we are doing our part to assist dealers. We're reducing shipments in product segments most challenged and adding promotional dollars where necessary to assist them with moving product.

從經銷商那裡得知，他們仍然認為所有動力運動庫存過高，並正在積極尋找管理庫存的機會，採取的策略包括減少原始設備製造商的數量、從自己的錢包中增加額外的促銷資金以及減少從經銷商的出貨量等。每個經銷商都在處理這些行業問題的自己獨特的版本。雖然我們無法影響其他原始設備製造商，但我們確實相信，總的來說，我們正在盡自己的一份力量來幫助經銷商。我們正在減少最困難的產品領域的出貨量，並在必要時增加促銷資金以幫助他們轉移產品。

Given the current trends in rec and utility and the weak snow season, we have adjusted our manufacturing outlook for these lines for the remainder of the year. We've made some meaningful cuts in snow for the upcoming season, given the elevated inventory that is in the channel today. We've also reduced RZR side-by-side production as recreation retail has been down, and we do not see a near-term improvement given elevated interest rates impacting consumer purchasing decisions and the likelihood that rates stay higher longer than originally anticipated. We've also decreased production of Slingshots, which have a higher mix of consumers who finance their vehicles. While it's early in the retail season, the Marine environment is largely playing out as anticipated.

鑑於當前的娛樂和公用事業趨勢以及雪季疲軟，我們調整了今年剩餘時間這些生產線的製造前景。鑑於目前渠道中的庫存增加，我們對即將到來的季節進行了一些有意義的減雪。由於娛樂零售業的下降，我們也同時減少了RZR 產量，而且鑑於利率上升影響了消費者的購買決策，而且利率可能比最初預期的水平保持更高的時間，因此我們認為短期內不會有改善。我們也減少了彈弓車的產量，因為彈弓車的消費者比例較高。雖然現在正處於零售季節的早期，但海洋環境基本上正如預期的那樣發展。

In utility, we've made the decision to increase production of our RANGER side-by-sides given multiple quarters of strong retail growth and healthy dealer inventory turns. Polaris continues to operate in a disciplined manner regarding our dealer inventory to ensure we have the right inventory in the field to maintain our competitive position while not burdening dealers with excess flooring cost. Our goal is to remain agile while being the partner of choice with our dealer to ensure a healthy relationship today and into the future.

在公用事業方面，鑑於多個季度的強勁零售成長和健康的經銷商庫存週轉率，我們決定同時增加 RANGER 的產量。北極星繼續以嚴格的方式管理我們的經銷商庫存，以確保我們在現場擁有合適的庫存，以保持我們的競爭地位，同時不會給經銷商帶來過多的地板成本負擔。我們的目標是保持敏捷性，同時成為經銷商的首選合作夥伴，以確保今天和未來的健康關係。

Moving to one of my favorite topics, innovation. We've had a busy couple of months with the launch of our new Indian Scout platform, the new 2025 snowmobile lineup and the 2025 lineup of full-size rangers. The Scout platform was first launched by Polaris 10 years ago and has quickly grown to become the best-selling platform in the Indian motorcycle lineup. We're excited to carry on the tradition of this historically important bike with this new launch. Not only does the bike have a completely new engine, but also added highly sought after tech features to enhance the rider experience.

轉向我最喜歡的話題之一：創新。我們度過了忙碌的幾個月，推出了新的 Indian Scout 平台、新的 2025 年雪地摩托車系列和 2025 年全尺寸護林員系列。 Scout 平台由 Polaris 於 10 年前首次推出，並迅速發展成為印度摩托車系列中最暢銷的平台。我們很高興能夠透過這款新產品繼承這款具有重要歷史意義的自行車的傳統。這款自行車不僅擁有全新的發動機，還添加了備受追捧的技術功能，以增強騎士體驗。

Scout is an entry point into the brand with more than 90% of Scout owners being new to Indian motorcycle and also serves as a pipeline for growth into the other parts of our lineup. We've seen roughly 70% of our midsized riders move up to the heavyweight cruisers or our bagger and touring lineup with their next motorcycle purchase, further reinforcing the importance of Scout and the role plays to drive further share gains.

Scout 是進入該品牌的一個切入點，超過 90% 的 Scout 車主是印度摩托車的新手，同時也是我們產品線其他部分的成長管道。我們發現，大約 70% 的中型騎士在下一次購買摩托車時升級為重量級巡洋艦或 bagger 和旅行陣容，這進一步強化了 Scout 的重要性以及推動市場份額進一步增長的角色扮演。

We also announced and started shipping the lineup of model year 2025 full-size RANGER side-by-sides. These new RANGERs have rider inspired design enhancements and upgraded transmission and additional factory installed accessories. The new lineup makes the best-selling vehicle in the market even better. RANGER is the #1 side by side in the market and as the utility market continues to grow, we're excited to bring more innovation to our core utility customers.

我們也宣布並開始同時出貨 2025 年全尺寸 RANGER 車型陣容。這些新 RANGER 具有受騎士啟發的設計增強功能、升級的變速箱以及額外的工廠安裝配件。新的陣容使市場上最暢銷的車輛變得更加出色。 RANGER 是市場上並列第一的產品，隨著公用事業市場的不斷增長，我們很高興能為我們的核心公用事業客戶帶來更多創新。

Wrapping up my comments on the quarter, we executed well in what we knew was going to be a challenging environment. We gained share with a strong product portfolio, made even stronger with our recent new product launches. We're working in partnership with our dealers to ensure they have the right mix and quantity of inventory to effectively manage their business and we continue to execute our plan to drive $150 million in operating savings in 2024, consistent with our long-term path to drive EBITDA margin expansion.

總結我對本季的評論，我們在我們知道將是一個充滿挑戰的環境中表現良好。我們憑藉強大的產品組合贏得了市場份額，最近推出的新產品使我們的市場份額變得更加強大。我們正在與我們的經銷商合作，確保他們擁有正確的庫存組合和數量，以有效管理他們的業務，我們將繼續執行我們的計劃，到2024 年節省1.5 億美元的營運成本，這與我們的長期目標一致推動 EBITDA 利潤率擴張。

I'll now turn it over to Bob, who will summarize our first quarter performance and provide updated commentary around our guidance and expectations for 2024. Bob?

我現在將其交給鮑勃，他將總結我們第一季的業績，並圍繞我們對 2024 年的指導和預期提供最新評論。

Thanks, Mike, and good morning or afternoon to everyone on the call today. First quarter sales were $1.7 billion, down 20% versus last year. The decline was expected due to several factors we called out when we spoke in January. These included late-season snowmobile shipments in Q1 2023 as a result of supply constraints, which did not repeat in Q1 2024. The lapping of ORV and marine channel fill in the first quarter of 2023, lower planned factory shipments to contend with elevated dealer inventory in Off-Road recreation and Marine and lower net price given the high promotional environment versus Q1 of last year.

謝謝麥克，今天與會的每個人都早安或下午好。第一季銷售額為 17 億美元，比去年同期下降 20%。由於我們在一月份講話時指出的幾個因素，這種下降是預料之中的。其中包括由於供應限製而導致2023 年第一季的季末雪地摩托車發貨量，這種情況在2024 年第一季沒有重複。出貨量較低，以應對經銷商庫存增加的情況與去年第一季相比，由於促銷環境較高，因此在越野娛樂和船舶領域的淨價較低。

Therefore, there were not many surprises on the top line, although the snow season was weaker than we expected, which in the quarter, mostly impacted our snow whole good retail and related snow PG&A lines. Despite this, PG&A sales were up 3%, with strength in our factory installed accessories in Off-Road. We continue to view our PG&A business as a driver for both sales and margin throughout the year.

因此，儘管雪季比我們預期的要弱，但營收方面並沒有太多驚喜，這在本季度主要影響了我們的雪品整體零售和相關雪品 PG&A 線。儘管如此，憑藉我們工廠安裝的越野配件的實力，PG&A 的銷售額仍成長了 3%。我們繼續將 PG&A 業務視為全年銷售額和利潤率的驅動力。

Adjusted EBITDA margin was down 459 basis points due to many of the same factors impacting sales such as volume and higher promotions. In addition, we are seeing slightly higher warranty costs in Off-Road and continue to experience higher finance interest associated with flooring interest support for our dealers. As expected, foreign exchange was also a headwind. Somewhat offsetting these headwinds was a positive contribution from operations despite the deleverage from lower volume and controlled operating expense spending.

調整後的 EBITDA 利潤率下降了 459 個基點，原因是銷售和促銷力度加大等許多影響銷售的因素。此外，我們發現越野車的保固成本略高，並且繼續經歷與經銷商的地板利息支援相關的更高的財務利息。正如預期的那樣，外匯也是一個阻力。儘管銷售下降和控制營運費用支出導致了去槓桿化，但營運的積極貢獻在一定程度上抵消了這些不利因素。

One unique item to note is that our tax rate in the quarter was 49.3%, which was more a function of lower net income year-over-year versus anything structural and we still expect our full year tax rate to be between 21.5% and 22.5%. Adjusted EPS of $0.23 was above our initial expectations for the quarter.

需要注意的一個獨特事項是，我們本季的稅率為 49.3%，這更多是由於與任何結構性因素相比，淨利潤同比下降，我們仍然預計全年稅率在 21.5% 至 22.5% 之間% 。調整後每股收益 0.23 美元高於我們對該季度的最初預期。

In our Off-Road business, revenue was down 16%, mainly driven by factors already discussed, such as the channel fill and the lapping of snow season shipments last year. We shipped close to 6,000 units of our new Polaris Expedition and RANGER XD combined during the quarter as we strive to meet customer demand for these category-defining vehicles. Data shows we gained share on a unit and dollar basis during the quarter in ORV. On a dollar basis, which puts more weight on the premium side of the market versus the lower end and youth, we gained more share in our nearly 50% of the ORV market.

在我們的越野業務中，收入下降了 16%，主要是受到已經討論過的因素的影響，例如渠道填充和去年雪季出貨量的減少。我們努力滿足客戶對這些類別定義車輛的需求，本季我們的新款 Polaris Expedition 和 RANGER XD 合計出貨量接近 6,000 輛。數據顯示，本季我們在 ORV 領域的單位份額和美元份額有所增加。以美元計算，高端市場相對於低端市場和年輕市場更重要，我們在近 50% 的 ORV 市場中獲得了更多份額。

We believe this illustrates our strength as a premium OEM within the ORV market versus inflating market share with use and lower-tier products. The lack of snow across most of North America impacted both our retail and industry retail. Primary impact to us is a change in expected selling of snowmobiles for next season given current dealer inventory levels. I will cover this further in a moment.

我們相信，這說明了我們作為 ORV 市場中的優質 OEM 的實力，而不是透過使用和低端產品擴大市場份額。北美大部分地區缺雪影響了我們的零售和工業零售。對我們的主要影響是考慮到當前經銷商庫存水平，下一季雪地摩托車的預期銷售發生變化。我稍後將進一步介紹這一點。

Margins in the quarter were pressured by volume, higher promotional levels and finance interest. Operational improvements within our plants were realized and are expected to contribute more dollars as the year progresses. Thinking about the second quarter, we expect longer-term trends to continue within utility and recreation. Promotions are expected to remain elevated and we believe our competitive position should only get stronger with the recent launch of our new RANGER portfolio as well as continued interest in the products we launched last year.

本季的利潤率受到銷售量、促銷水準提高和融資利息的壓力。我們工廠的運作得到了改善，預計隨著時間的推移將貢獻更多的資金。考慮到第二季度，我們預計公用事業和娛樂領域的長期趨勢將持續下去。預計促銷活動將繼續增加，我們相信，隨著最近推出的新 RANGER 產品組合以及人們對我們去年推出的產品的持續興趣，我們的競爭地位只會變得更強。

On margins, we expect meaningful gross margin expansion as we continue to make progress on our operational savings strategy. Switching to On-Road. Sales during the quarter were down 14%, driven by weakness in Slingshot and a soft international motorcycle market. Indian Motorcycles gained modest share during the quarter, driven by continued strength in the midsized category, which is an area of strength for us, especially with the launch of the new Scout.

在利潤率方面，隨著我們繼續在營運節約策略上取得進展，我們預計毛利率將出現有意義的成長。切換到公路行駛。由於 Slingshot 疲軟和國際摩托車市場疲軟，該季度銷售額下降 14%。印度摩托車在本季度獲得了適度的份額，這得益於中型摩托車類別的持續強勢，這對我們來說是一個優勢領域，特別是隨著新款 Scout 的推出。

On-Road gross profit margin was up 41 basis points due to strength from our European businesses, Aixam and Goupil, somewhat offset by higher promotions in the heavyweight categories. During the second quarter, we expect a modest benefit from the new Scout launch with offsetting pressure coming from Slingshot and continued promotions.

由於我們的歐洲業務 Aixam 和 Goupil 的實力強勁，公路毛利率上升了 41 個基點，但在一定程度上被重量級類別的較高促銷活動所抵消。在第二季度，我們預計新推出的 Scout 將帶來適度的收益，抵消來自 Slingshot 和持續促銷的壓力。

In Marine, sales were down 53% as the industry continues to deal with elevated dealer inventory levels and higher interest rates impacting the consumer's decision to purchase. Our shipments in the quarter were in line with our expectations given the trends we are seeing in the second half -- we were seeing in the second half of 2023, which resulted in lower volumes in the first quarter and a reduction of dealer inventory versus first quarter 2023.

在船舶領域，由於該行業繼續應對經銷商庫存水準升高和利率上升影響消費者購買決定的問題，銷售額下降了 53%。考慮到我們在 2023 年下半年看到的下半年趨勢，我們本季的出貨量符合我們的預期，這導致第一季銷售下降，經銷商庫存也較第一季減少2023 年季度。

SSI data through February reflected the decline in year-over-year retail, although our internal data through March suggest our brands are going to be relatively flat year-over-year in the first quarter. As we head into the spring selling season and compare inventory levels to previous years, we feel that our position is much healthier than many of our competitors.

截至 2 月的 SSI 數據反映了零售額年減，儘管我們截至 3 月的內部數據表明，我們的品牌第一季同比將相對持平。當我們進入春季銷售季節並將庫存水準與往年進行比較時，我們認為我們的地位比許多競爭對手要健康得多。

Gross profit margin was down 776 basis points given top line pressures and less labor absorption at our plants. Our team continues to actively manage the variable components of our cost structure to help protect profits. We continue to see the industry challenge during the second quarter as dealers work through current inventory levels and consumer purchases are hampered by elevated interest rates.

由於營收壓力和工廠勞動力吸收減少，毛利率下降了 776 個基點。我們的團隊繼續積極管理成本結構的可變組成部分，以幫助保護利潤。我們繼續看到第二季度行業面臨的挑戰，因為經銷商正在努力解決當前的庫存水平，而消費者的購買則受到利率上升的阻礙。

Moving to our financial position. We knew the first quarter was going to be a quarter with minimal EBITDA and cash generation as is typically the case during the early part of the year with dealer holdback and employee bonus payments being made in Q1. Therefore, we have limited share repurchase activity in the first quarter as we prioritized maintaining our net leverage ratio in the range that we have previously communicated. For the full year, we expect to repurchase enough shares to offset dilution from stock-based compensation plans, and we remain well ahead of our 2026 target of reducing the basic shares outstanding by 10%.

轉向我們的財務狀況。我們知道第一季將是 EBITDA 和現金產生最少的季度，就像今年年初的典型情況一樣，經銷商扣留和員工獎金在第一季度支付。因此，我們在第一季的股票回購活動有限，因為我們優先將淨槓桿率維持在先前溝通的範圍內。全年，我們預計將回購足夠的股票，以抵消基於股票的薪酬計劃的稀釋，並且我們仍然遠遠領先於 2026 年將已發行基本股減少 10% 的目標。

During the quarter, we used cash to support CapEx investments and returned $53 million to shareholders in the form of dividends and share repurchases. We remain confident in our financial position our net debt-to-EBITDA ratio is expected to trend lower as we generate more EBITDA and cash as the year progresses. We continue to expect strong adjusted free cash flow this year and believe our capital deployment priorities are aligned with the strategy to build shareholder value.

本季度，我們使用現金支持資本支出投資，並以股利和股票回購的形式向股東返還 5,300 萬美元。我們對我們的財務狀況仍然充滿信心，隨著我們隨著時間的推移產生更多的 EBITDA 和現金，我們的淨債務與 EBITDA 比率預計會下降。我們仍預期今年調整後的自由現金流將會強勁，並相信我們的資本部署優先事項與建立股東價值的策略是一致的。

Now let's move to guidance and expectations for 2024. We are not changing our full year guidance for Polaris at this time but are making a minor adjustment at the segment sales level given the adjustments we have made within On-Road to account for current trends. This updated outlook calls for On-Road 2024 sales to be down mid-single digits versus our original guidance of flat year-over-year sales. Recall the On-Road change is in response to weaker trends we are seeing in Slingshot, some additional pressure on motorcycles internationally. While both of these markets are being impacted by higher interest rates, we have seen a more pronounced impact on Slingshot retail and thus have adjusted our production schedule downward.

現在讓我們轉向2024 年的指導和預期。進行微調。更新後的展望預計 2024 年 On-Road 銷量將比我們最初的同比銷量持平的指導值下降中個位數。回想一下，On-Road 的變化是為了應對我們在 Slingshot 中看到的疲軟趨勢，即國際上摩托車面臨的一些額外壓力。雖然這兩個市場都受到利率上升的影響，但我們發現 Slingshot 零售業受到的影響更為明顯，因此我們下調了生產計劃。

Promotions and finance interest are expected to remain at elevated levels, which continues to add pressure to our top line and margin. We maintain our guidance for Off-Road 2024 sales at down mid-single digits. Within Off-Road, we are now expecting lower snow sales in the second half of the year given dealer inventory levels coming out of this past season. Additionally, we have pulled back on recreation, Off-Road vehicles, vehicle volume given retail and industry trends. These pullbacks have been offset by the added volume from continued strength we see in our Utility Off-Road vehicles.

促銷和融資利息預計將保持在較高水平，這將繼續為我們的營收和利潤增加壓力。我們對 2024 年越野銷售的指導維持在中個位數以下。在越野領域，鑑於上個季節的經銷商庫存水平，我們預計下半年的雪銷量將會下降。此外，考慮到零售和行業趨勢，我們還減少了休閒車、越野車和車輛銷售。這些回調已被我們在通用越野車中看到的持續強勁的銷售增加所抵消。

Regarding dealer inventory, we are actively addressing areas with elevated inventory coupled with weaker retail trends, particularly in off-road recreation and marine by reducing shipments of those products to help minimize flooring interest for our dealers. We are also actively managing the mix of products in those segments to align trim levels with consumer expectations.

關於經銷商庫存，我們正在積極解決庫存增加和零售趨勢疲軟的領域，特別是在越野休閒和海洋領域，透過減少這些產品的出貨量來幫助最大限度地減少經銷商對地板的興趣。我們也積極管理這些細分市場的產品組合，以使裝飾水準與消費者的期望保持一致。

We target building inventory with new products and in growth categories. One such growth area is utility where dealers hold approximately 3 turns of RANGER inventory, which is comparable to pre-pandemic levels. Indian Motorcycles is also at similar turns versus pre-pandemic levels. We have a strong discipline around dealer inventory and understand the frustration our dealers have with other OEMs overshipping the channel or lacking a sophisticated inventory management system. We strive to be a business partner of choice for our approximately 4,000 dealers globally and want to share in their success.

我們的目標是透過新產品和成長類別建立庫存。其中一個成長領域是公用事業，經銷商持有大約 3 週的 RANGER 庫存，與大流行前的水平相當。印度摩托車與大流行前的水平相比也處於類似的轉變。我們對經銷商庫存有嚴格的規定，並且理解我們的經銷商對其他原始設備製造商在通路上過度發貨或缺乏複雜的庫存管理系統的不滿。我們努力成為全球約 4,000 家經銷商的首選業務合作夥伴，並希望分享他們的成功。

As previously communicated, our margin guidance calls for expanding both gross profit and EBITDA margins with most of the expansion resulting from savings and efficiencies at the gross profit level. In total, we are targeting over $150 million in operational savings with an even larger funnel of opportunity. Foreign currencies remain volatile and are expected to continue to be a headwind. Given the recent strength of the dollar, we see additional downside pressure from FX, we now believe the negative impact on EBITDA for the year is about $30 million versus our original expectation of approximately $20 million.

如同先前所傳達的，我們的利潤指引要求擴大毛利和 EBITDA 利潤率，其中大部分擴張來自於毛利水準的節省和效率。總的來說，我們的目標是節省超過 1.5 億美元的營運成本，並提供更大的機會。外幣仍然波動，預計將繼續成為不利因素。鑑於美元近期走強，我們看到來自外匯的額外下行壓力，我們現在認為對今年 EBITDA 的負面影響約為 3000 萬美元，而我們最初的預期約為 2000 萬美元。

For the second quarter, a few things to note. As I mentioned on the January call, we expect sales in the remaining 3 quarters of the year to be relatively flat year-over-year, including the second quarter. Our assumption is that industry retail is going to be down modestly for the year remains intact with Polaris gaining modest share through the year. Higher year-over-year promotions and finance interest continue to be headwinds. Operational synergies are expected to be larger to be reflected in margin expansion during the quarter. Lastly, FX and interest expense continue to be unfavorable year-over-year.

對於第二季度，有幾點需要注意。正如我在 1 月的電話會議上提到的，我們預計今年剩餘 3 個季度的銷售額將比去年同期相對持平，包括第二季。我們的假設是，今年工業零售業將小幅下降，而北極星今年的份額將小幅增加。同比促銷和財務利息的增加仍然是不利因素。預計營運協同效應將更大，並反映在本季的利潤率擴張中。最後，外匯和利息支出仍然同比不利。

Before I turn it back to Mike, I want to emphasize how encouraging our recent operating review meetings have been. The energy level around lean and operational improvements is clear. While these improvements take time, we believe we have the right team in place for the journey and we expect to begin seeing results and margin expansion in the second quarter. It's an exciting time to be at Polaris and witness the innovation we are launching and the passion from our team. We have a lot of opportunities to improve our market share position, margin profile and cash generation capabilities, all of which I believe can lead to increasing value for our shareholders. With that, I will turn it back over to Mike to wrap up the call. Go ahead, Mike.

在我把問題轉回麥克之前，我想強調一下我們最近的營運審查會議是多麼令人鼓舞。圍繞精益和營運改進的能量水平是顯而易見的。雖然這些改進需要時間，但我們相信我們擁有合適的團隊來完成這趟旅程，我們預計將在第二季開始看到結果和利潤率擴張。在北極星見證我們正在推出的創新和我們團隊的熱情，這是一個令人興奮的時刻。我們有很多機會來提高我們的市場份額地位、利潤狀況和現金產生能力，我相信所有這些都可以為我們的股東帶來增加的價值。這樣，我會將其轉回給麥克來結束通話。繼續吧，麥克。

Thanks, Bob. The macro environment remains uncertain. And given that, we expect to remain agile regarding both production and dealer inventory. We carried our North American market share gains from last year into the first quarter of 2024. Our expectation is that we'll continue to take share this year with industry-leading innovation, a healthy partnership with our dealers and a strong value proposition to bring memorable experiences to our customers who enjoy working and playing outside.

謝謝，鮑伯。宏觀環境仍存在不確定性。有鑑於此，我們希望在生產和經銷商庫存方面保持敏捷。我們將去年的北美市場份額增長延續到 2024 年第一季。喜歡在戶外工作和玩耍的客戶帶來難忘的體驗。

Introducing new customers to powersports continues to be a focus for us as they make up a strong portion of the business. During the first quarter, we saw similar patterns with approximately 70% of our customers being new to Polaris vehicles. This is a great statistic to see. As the market leader, we continue to grow the space and create awareness for the capabilities and experiences provided by our vehicles.

向新客戶介紹動力運動仍然是我們的重點，因為他們構成了業務的重要組成部分。在第一季度，我們看到了類似的模式，大約 70% 的客戶是北極星汽車的新客戶。這是一個非常值得一看的統計數據。作為市場領導者，我們不斷擴大空間並提高人們對我們車輛提供的功能和體驗的認識。

Operationally, we're on a journey. I was encouraged with the progress we made at the largest facilities and I'm confident in our improvement plans for the year. I believe our first quarter results, coupled with a focus to drive market share and margin expansion positions us well to deliver on our 2024 guidance. We thank you for your continued support. And with that, I'll turn the call back over for any questions.

從操作上來說，我們正在旅途中。我對我們在最大的工廠取得的進展感到鼓舞，我對我們今年的改進計劃充滿信心。我相信，我們第一季的業績，加上對提高市場份額和利潤率擴張的關注，使我們能夠很好地實現 2024 年的指導。我們感謝您一直以來的支持。就這樣，如果有任何問題，我會轉回電話。

(Operator Instructions) Today's first question comes from Craig Kennison with Baird.

（操作員說明）今天的第一個問題來自 Baird 的 Craig Kennison。

I guess I wanted to get your perspective, Mike, on the health of the dealer network, given feedback from dealers that inventory is just way too high and a lot of evidence that there's stress in the market caused by skinny margins and high floor plan expense. I feel like you're feeling -- you've done it all, you've done it right and -- but your competitors have too much inventory. And I'm not sure that's exactly what I hear from dealers.

我想我想聽聽你對經銷商網路健康狀況的看法，麥克，考慮到經銷商的反饋，庫存太高，而且有大量證據表明，市場上存在壓力，原因是利潤微薄和平面圖費用高。我覺得你感覺——你已經完成了這一切，你做得對了——但你的競爭對手有太多的庫存。我不確定這是否正是我從經銷商那裡聽到的。

Yes. No, look, I appreciate it, Craig. And certainly, in this environment, it's something we're spending a disproportionate amount of time on, I can tell you different from many of our competitors, Bob and I and our GBU leaders spent a lot of time out in the field with our dealers. In January, we were with our Indian motorcycle dealers. And March, Bob and I were out at Marine dealers in Michigan, which is the largest market. And then we're headed back out with Steve in May to talk to Off-Road dealers on the West Coast. Look, they certainly are under stress. I can tell you from sitting in those dealerships that the conversation is not just a simple 5-minute phone call. It's in detail. First and foremost, I think we probably have the best grip on this across the industry. We've got incredible visibility that's enabled through the systems that we have. The RFM process gives us essentially real-time data. We are always going to be the largest part of the discussion because we are the market leader. You have to add up a lot of the other OEMs to even get close to our numbers. So they are typically going to have more inventory for Polaris than they do with the others. But the devils in the details relative to the efficiency of the inventory. And we know because we can see through the systems through CDK, where we have visibility into about 70% of the inventory that we are either #1 or top quartile when you look at things like days sales outstanding, 6, 12 months at the dealership or you look at their mix of current inventory to noncurrent inventory. In that bucket, we are #1.

是的。不，聽著，我很感激，克雷格。當然，在這種環境下，我們在這方面花費了不成比例的時間，我可以告訴你，與我們的許多競爭對手不同，鮑勃和我以及我們的GBU 領導者在現場與我們的經銷商一起花費了大量時間。一月份，我們與印度摩托車經銷商合作。三月，鮑伯和我去了密西根州的船舶經銷商，這是最大的市場。然後我們將在五月與史蒂夫一起回去與西海岸的越野經銷商進行交談。瞧，他們肯定承受著壓力。我可以透過坐在這些經銷店裡告訴你，談話不僅僅是簡單的 5 分鐘電話。說的很詳細啊首先也是最重要的，我認為我們可能在整個行業中對此擁有最好的把握。透過我們現有的系統，我們獲得了令人難以置信的可見性。 RFM 流程為我們提供了本質上即時的數據。我們始終是討論的最大部分，因為我們是市場領導者。您必須將許多其他 OEM 廠商的數量加起來才能接近我們的數字。因此，他們通常會比其他產品擁有更多的北極星庫存。但細節的魔鬼與庫存的效率有關。我們之所以知道這一點，是因為我們可以透過CDK 透視系統，我們可以看到大約70% 的庫存，當您查看經銷商的銷售天數、6 個月、12 個月等數據時，我們要么排名第一，要么名列前四分之一。在這個方面，我們是第一名。

Just to give you a frame of reference. There's an OEM that was shipping over 70% through the first quarter of the inventory into dealers that was from model year '23. And so that puts into perspective some of the dynamics that are going on at the dealers. In my prepared remarks, I talked about the fact that dealers are taking things into their own hands. One of the things that became evident as we've met with the marine dealers is that they're trying to move out some of the smaller brands that they brought in during the pandemic when they were desperate just to get their hands on boats. They still have inventory in those brands that they're trying to move and there's a lot of focus and attention around that. And financially, it's a bit of a drag.

只是給你一個參考框架。有一家 OEM 在第一季將 23 年款車型 70% 以上的庫存運送給經銷商。這樣就可以了解經銷商正在發生的一些動態。在我準備好的發言中，我談到了經銷商正在把事情掌握在自己手中的事實。當我們與船舶經銷商會面時，顯而易見的一件事是，他們正試圖將一些在疫情期間引入的小品牌撤出，當時他們迫切地想要獲得船隻。他們仍然擁有他們試圖轉移的那些品牌的庫存，並且對此有很多關注和關注。從經濟上來說，這有點拖累。

Through our JV with Wells Fargo, which is expanding to cover our Marine segment, we have good visibility into each of our dealers. We watch their financial health. Bob is the Chairman of the Board for that JV. And we keep a very close eye. That JV has been effective for well over 20 years and helping us make sure that we're working with the dealers. Hopefully, as the industry leader, we'll get the rest of the OEMs to follow suit and behave in a consistent manner. We can't control that. So we're going to do everything we can to do our part.

透過我們與富國銀行的合資企業（該合資企業正在擴展到我們的船舶領域），我們對每個經銷商都有良好的了解。我們關注他們的財務健康狀況。鮑伯是該合資企業的董事會主席。我們密切關注。該合資企業已有效運作了 20 多年，並幫助我們確保與經銷商的合作。希望作為行業領導者，我們能夠讓其他原始設備製造商效仿並以一致的方式行事。我們無法控制這一點。因此，我們將盡我們所能，盡自己的一份力量。

But I'd look at things like dealer inventory, we're up versus where we were in Q1 of last year. If you remember, last year, we -- the channel was still very light in inventory. But when I look at the models that are not moving quickly, so the models that we outlined, whether that's Marine or Boats, Slingshots, in aggregate, we've taken those categories down 14% year-over-year. That's pretty significant. And I think reflective of making sure that we're working with our dealers, we're not perfect, but we know where the soft pockets are, and we are actively pulling those inventory levels down. We've adjusted our production schedules. The good news is, given our RANGER lineup and the concentration we have around utility, which is a market that remains strong, we're obviously recognizing the benefit. That's good for our dealers. Those are high-margin vehicles. They bring a lot of accessories along with them. And so we're obviously pushing production up on that and we think that's going to go a long way.

但我會關注經銷商庫存等因素，與去年第一季相比，我們有所上升。如果你還記得，去年，我們通路的庫存仍然非常少。但當我看到那些發展不快的模型時，我們概述的模型，無論是海洋還是船、彈弓，總的來說，我們已經將這些類別比去年同期下降了 14%。這非常重要。我認為，確保我們與經銷商合作，我們並不完美，但我們知道軟實力在哪裡，我們正在積極降低庫存水準。我們調整了生產計劃。好消息是，鑑於我們的 RANGER 系列以及我們對公用事業的關注（這是一個仍然強勁的市場），我們顯然認識到了其中的好處。這對我們的經銷商來說是件好事。這些是高利潤車輛。他們隨身攜帶了很多配件。因此，我們顯然正在提高產量，我們認為這將大有幫助。

So I think the message is we're going to operate with an incredible level of discipline. We were clear when we gave guidance, we reiterated it today that, as retail goes, our business goes and we're going to make sure that we stay true to that, and we're going to make sure that we keep our dealers healthy here in the near term because we really value that long-term relationship and health of the network.

所以我認為我們要傳達的訊息是，我們將以令人難以置信的紀律來運作。當我們提供指導時，我們很清楚，我們今天重申，隨著零售的發展，我們的業務也在發展，我們將確保我們堅持這一點，我們將確保我們保持經銷商的健康短期內之所以如此，是因為我們非常重視長期關係和網絡的健康狀況。

I think a couple of things to think about, Craig. Like Mike said, obviously, we're the biggest in the industry, we're always going to have the highest box count. We also put out more innovative products than other folks. And so we've got new product launches, which causes some level of channel fill. We do manage with RFM. And if you really look at the REC categories, Mike talked about how much we've taken that inventory down, typically, Q1 to Q2, both in categories like RZR and Marine, you would build coming into the season, you would build the dealer inventory mid- to high double-digit range, 15% to 20%. This year, we're down in RZR, we're flat in marine. And so not only did we constrain dealer inventory as in '23 and in the first quarter at '24. But we didn't see the typical build we would have going into seasonality. So we're going to hopefully use that seasonality to help keep those inventory levels down in the categories that we see most challenged. So I feel like we've been probably the most aggressive by a large margin in terms of really managing dealer inventory.

我認為有幾件事需要考慮，克雷格。正如麥克所說，顯然，我們是業內最大的，我們總是擁有最多的盒子數量。我們也推出了比其他人更多的創新產品。因此，我們推出了新產品，這導致了一定程度的通路填充。我們確實透過 RFM 進行管理。如果你真正關注 REC 類別，Mike 談到我們通常從第一季度到第二季度，在 RZR 和 Marine 等類別中減少了多少庫存，您將在進入季節時建立庫存，您將建立經銷商庫存在中高兩位數範圍內，即15% 至20%。今年，我們的 RZR 下降，我們的海洋持平。因此，我們不僅限制了 23 年和 24 年第一季的經銷商庫存。但我們沒有看到季節性的典型建造。因此，我們希望利用這種季節性來幫助降低我們認為面臨最大挑戰的類別的庫存水準。因此，我覺得在真正管理經銷商庫存方面，我們可能是最積極的。

Our Marine inventory is very clean. It's been a challenging market. We talked about in the prepared remarks, we think it will be relatively flat for Q1. Hopefully, we'll see some good response as the warmer weather shows up, but we're not sitting on dealer or inventory at our factories. We build to order. And so we've managed that business with what we see as incoming dealer orders. And so we think we're in a pretty good position compared to a lot of other OEMs.

我們的海洋庫存非常乾淨。這是一個充滿挑戰的市場。我們在準備好的演講中談到，我們認為第一季將相對持平。希望隨著天氣變暖，我們會看到一些良好的反應，但我們不會坐擁經銷商或工廠的庫存。我們按訂單生產。因此，我們透過收到的經銷商訂單來管理該業務。因此，我們認為與許多其他原始設備製造商相比，我們處於非常有利的地位。

And our next question today comes from Noah Zatzkin with KeyBanc Capital Markets.

今天我們的下一個問題來自 KeyBanc Capital Markets 的 Noah Zatzkin。

I guess you kind of talked through this a little bit, but in terms of kind of where you are on the RV side, in terms of mix, what do you think that implies for promo levels relative to Q1? And then if you could just kind of talk through the operational improvements that you're realizing and the ability to offset promo looking ahead?

我想您對此進行了一些討論，但就您在 RV 方面的情況而言，就混合而言，您認為這對於相對於第一季的促銷水平意味著什麼？然後，您是否可以談談您正在實現的營運改進以及抵消未來促銷的能力？

And then second, not to pry too much, but I think sometimes you give some EPS color on the forward quarter. So just any thoughts there would be helpful.

其次，不要過度打探，但我認為有時你會在前一季的 EPS 上給出一些顏色。所以任何想法都會有幫助。

Yes. On the ORV mix and in promo implications, when we talked about the year-over-year '24 versus '23 and we talked about the increase in promo, most of that really happened in Q1 of this year. And we expect those levels to essentially remain similar as we go into Q2, 3 and 4. But if you look back to last year, promo would start ramping up through the course of the year. So we think promo will be up. It's probably going to be a little higher than we originally expected because we know that there's a lot of noncurrent inventory from some of our competitors out in the market. But as we look at how we've rebalanced production, we brought RZR and Slingshot, Snow down, but we're increasing Ranger to recognize the utility strength. We feel like those things all somewhat counterbalance, but we do think there will be a little bit of a headwind from a promo standpoint, but that's all well within the guidance range that we've talked about.

是的。關於 ORV 組合和促銷影響，當我們談論 24 年與 23 年的同比情況以及促銷的增加時，大部分確實發生在今年第一季。我們預計，進入第二季、第三季和第四季時，這些水準將基本保持相似。所以我們認為促銷將會進行。它可能會比我們最初預期的要高一點，因為我們知道市場上有一些競爭對手的大量非流動庫存。但當我們考慮如何重新平衡生產時，我們降低了 RZR 和 Slingshot、Snow，但我們正在增加 Ranger 以認識到實用性的優勢。我們覺得這些事情在某種程度上起到了平衡作用，但我們確實認為從促銷的角度來看會有一點阻力，但這一切都在我們討論的指導範圍內。

I talked about the operational improvements. I don't know that I'd sit here and tell you that we're going to be able to push those higher than what we had. I mean, we've got a pretty good slug of work in front of us. The team did an excellent job. We talked in the call in late January, early February, about the progress we've seen coming out of '23, and that momentum is continuing into '24 in terms of the underlying factory performance. And essentially digging out of the hole we had gotten ourselves into operationally. The cost improvement was relatively small in Q1 relative to the total bucket, but that was expected because it was our smallest quarter and the team is driving that forward. Bob talked about it in his prepared remarks. I mean we've got a lot of rigor focused around making sure that we get results to the bottom line coming out of this category. I'll let Bob talk a little bit about the EPS cadence.

我談到了營運方面的改進。我不知道我是否會坐在這裡告訴你們我們將能夠將這些提升到比我們現有的更高。我的意思是，我們面前有大量工作要做。該團隊做得非常出色。我們在 1 月底、2 月初的電話會議中談到了我們在 23 年中所看到的進展，就工廠的基本績效而言，這種勢頭將持續到 24 年。本質上是從我們在操作上陷入的困境中挖出來的。相對於總成本，第一季的成本改善相對較小，但這是預期的，因為這是我們最小的季度，而團隊正在推動這一趨勢。鮑伯在他準備好的發言中談到了這一點。我的意思是，我們非常嚴格地專注於確保我們從這個類別中獲得最終結果。我會讓 Bob 談談 EPS 節奏。

Yes. I mean, like we said, revenue is going to be relatively flat quarter-over-quarter or year-over-year for the remaining 3 quarters. We're not going to give EPS guidance by quarter. We don't do that. But I would say you'll see stronger operating improvements in the back half of the year just because all the improvements you make kind of lag a quarter. So what we saw in Q1 really was a result of a lot of the work that happened in Q4. And so those will build through the year in terms of earnings, but that's all the guidance we're going to give on EPS for the quarter.

是的。我的意思是，正如我們所說，在剩下的三個季度中，收入環比或同比將相對持平。我們不會按季度提供每股收益指引。我們不這樣做。但我想說，你會在今年下半年看到更強勁的營運改進，因為你所做的所有改進都落後了一個季度。因此，我們在第一季看到的確實是第四季度進行的大量工作的結果。因此，這些將在全年的盈利方面不斷增加，但這就是我們對本季度每股收益給出的所有指導。

And our next question today comes from Joe Altobello with Raymond James.

今天我們的下一個問題來自喬·阿爾托貝洛和雷蒙德·詹姆斯。

So you mentioned earlier that the earnings upside in the quarter really came from better-than-expected operational costs. How much of that was timing related? Maybe you realized some costs earlier than you expected. And is there upside potentially to that $150 million number this year?

所以您之前提到，本季的獲利成長其實來自於好於預期的營運成本。其中有多少與時間有關？也許您比預期更早意識到了一些成本。今年 1.5 億美元的數字還有上升空間嗎？

Yes. Thanks, Joe. No, I wouldn't say it was hugely time related. Just we got a little bit more and there were a lot of puts and takes in the quarter. So the operational improvements are on track with where we thought they would be. They do -- they obviously build through the year. I don't know that there's significant upside to the $150 million. It's a lot of work to get there. And like I said a couple of times over the last few calls, your efforts -- the results lagged the efforts by a solid quarter. And so everybody is working really hard. But we're focused on getting the $150 million this year and then having a good exit rate that can carry into '25, but I wouldn't plan on a lot of upside to the $150 million as we sit here today.

是的。謝謝，喬。不，我不會說這與時間有很大關係。只是我們得到了更多一點，並且本季度有很多看跌和看跌。因此，營運改善正在按我們的預期進行。他們確實這麼做了——顯然他們全年都在建設。我不知道這 1.5 億美元是否有顯著的上升空間。要到達那裡需要做很多工作。就像我在過去幾次電話中多次說過的那樣，你們的努力——結果落後於我們整整一個季​​度的努力。所以每個人都非常努力地工作。但我們的重點是今年獲得 1.5 億美元，然後擁有可以延續到 25 年的良好退出率，但當我們今天坐在這裡時，我不打算在 1.5 億美元的基礎上有太多的上漲空間。

Okay. That's helpful. Maybe secondly, the strategy behind shipping model year '25 RANGERs here in April, it seems a little early.

好的。這很有幫助。其次，也許四月發布 25 RANGER 車型背後的策略似乎有點早。

Yes. I mean, the product, obviously -- we work on these products for a long time. The product was ready. We're coming into season. We've got strong performance in the Utility segment. And so we wanted to get that product in the hands of consumers. We made a lot of really good quality and drivability improvements that we think are responsive to what consumers have been looking for in that product. And so with it being ready, we decided to go with model year '25 here in April.

是的。我的意思是，顯然，產品——我們在這些產品上工作了很長時間。產品準備好了。我們即將進入旺季。我們在公用事業領域表現強勁。因此，我們希望將該產品送到消費者手中。我們做出了許多非常好的品質和駕駛性能改進，我們認為這些改進滿足了消費者對該產品的需求。準備好後，我們決定在 4 月使用 25 年款。

It's all about leaning into the most favorable market right now, Joe. And I can tell you, they're excellent products. We've addressed a number of the things that were, I'll call them, sour spots with customers around shifting. But also, we spend a lot of time with consumers looking for ways to enhance what was already an excellent vehicle. And so we were excited to get it out. The team did an excellent job of executing the program, so we were in a position to be able to ship. And there's a lot of excitement around that vehicle as is with the vehicles we launched last year.

喬，這一切都是為了進入現在最有利的市場。我可以告訴你，它們是優秀的產品。我們已經解決了一些問題，我稱之為客戶在換班時的酸痛點。而且，我們花了很多時間與消費者一起尋找改進本已出色的車輛的方法。所以我們很高興能把它拿出來。該團隊在執行該計劃方面做得非常出色，因此我們能夠交付。與我們去年推出的車輛一樣，這款車也令人興奮不已。

And our next question today comes from Fred Wightman with Wolfe Research.

今天我們的下一個問題來自沃爾夫研究中心的弗雷德懷特曼。

I guess, just simplistically, you've given a handful of puts and takes and changes to sort of the production makeup or expectations for the rest of the year, but you guys did beat where you thought you would in 1Q. What is sort of the offset? Is there something later in the year that you're more cautious on as far as why you didn't address the full year outlook?

我想，簡單地說，你們已經對今年剩餘時間的製作構成或期望進行了一些調整和調整，但你們確實在第一季擊敗了你們的預期。偏移量是什麼？今年稍後是否有什麼事情讓您更加謹慎，為什麼您沒有解決全年展望？

Well, I mean, I think, Fred, I kind of hit on it a little bit earlier in terms of the promo levels are slightly elevated from where we expected them to be or expect them to be for the rest of the year. I mean Q1 was pretty close to what we were thinking. But as we look out through the balance of the year, just given interest rates are likely to move, we had expected around 3 reductions for the balance of the year. And in light of the inflation rate holding up and the comments that the Fed has made were likely not to see 3. I think we're worried if we'll see any. And so there's a little bit of that will likely play out in higher promo rates as we continue to adjust through the rest of the year.

好吧，我的意思是，我想，弗雷德，我有點早一點想到了這一點，因為促銷水平比我們預期的水平或今年剩餘時間的預期水平略有提高。我的意思是第一季非常接近我們的想法。但當我們展望今年剩餘時間時，考慮到利率可能會發生變化，我們原本預計今年剩餘時間會降息約 3 次。鑑於通膨率持續上升以及聯準會發表的評論，很可能不會出現 3。因此，隨著我們在今年剩餘時間繼續調整，其中一點可能會導致更高的促銷率。

Yes. I mean the interest cost isn't -- we had planned them late in the year. So the impact from a forecast standpoint is not particularly significant. To Mike's point, I think -- we think that consumers that there's a few rate cuts would start to feel a little better and that might have some positive benefit to retail and promo. And if that doesn't happen, obviously, we're going to be in the same environment we're in today. So we're sort of prepared for that and things were a little bit better in the first quarter. We made a little bit more progress than we thought we would, but nothing that would, at this point, cause us to change our view of the year.

是的。我的意思是利息成本不是——我們在今年稍後就計劃好了。所以從預測的角度來看，影響並不是特別大。就麥克的觀點而言，我認為——我們認為，幾次降息後的消費者會開始感覺好一點，這可能會對零售和促銷產生一些積極的好處。如果這種情況沒有發生，顯然我們將處於與今天相同的環境中。所以我們已經為此做好了準備，第一季的情況有所改善。我們取得的進展比我們想像的要多一點，但目前還沒有任何事情會導致我們改變對這一年的看法。

Fair enough. And I guess, Bob, you mentioned earlier just that sequential build in dealer inventories that you normally see from 4Q into 1Q. Didn't see that this year, right, because you guys are managing that closely. I guess when you look at the embedded benefit that you're expecting for gross margins as we move throughout the year from some of the new products, do you think that inventories where they are today, should still support a portion of the gross margin expansion that was from mix.

很公平。我猜，鮑勃，您之前提到經銷商庫存的連續增加，您通常會看到從第四季度到第一季的情況。今年沒有看到這一點，對吧，因為你們正在密切管理。我想，當您考慮我們全年從一些新產品轉向時對毛利率的內在效益時，您是否認為目前的庫存仍應支持毛利率擴張的一部分那是來自混合。

Yes. We are seeing good inventory build on Expedition and XD and the new products, RANGER. I mean, we launched the product, I guess, about a week ago and we started shipping immediately. I think they've started to hit dealers just in the last couple of days. So we -- that was all factored in. I mean, a lot of the cost improvement is things that are either just the cost of operating the plants, the efficiency in the plants. So that shows up fairly immediately as those vehicles get into inventory and same thing on materials. So we have that all still very aligned.

是的。我們看到 Expedition 和 XD 以及新產品 RANGER 的基礎上建立了良好的庫存。我的意思是，我們大約一周前推出了該產品，並且立即開始發貨。我認為他們是在最近幾天才開始打擊經銷商的。所以我們——這一切都被考慮在內。因此，當這些車輛進入庫存時，這一點會立即顯現出來，材料上也是如此。所以我們的一切仍然非常一致。

And our next question today comes from Megan Alexander with Morgan Stanley.

今天我們的下一個問題來自摩根士丹利的梅根亞歷山大。

Just wanted to follow up on 2Q. Bob, I think you did clarify you expect sales to be down year-over-year. You talked about significant margin expansion, understand interest expenses, a headwind understand you're not going to give an actual range, but the net of that does suggest earnings should be up year-over-year, I guess, is that right?

只是想跟進第二季。鮑勃，我認為您確實澄清了您預計銷售額將同比下降。您談到了顯著的利潤率擴張，了解利息支出，逆風了解您不會給出實際範圍，但我想，淨值確實表明收益應該同比增長，對嗎？

Yes. So thinking about Q2, what we've said is we think revenue is going to be relatively flat year-over-year. So the revenue side of it will be a big positive or negative. We'll see the cost improvements from the work we're doing on the operations side and -- which will then play out into the earnings. So we're not giving specific guidance but I think relatively flat year-over-year is a way to think about it.

是的。因此，考慮第二季度，我們認為營收將比去年同期相對持平。因此，它的收入方面將是一個很大的積極或消極的影響。我們將看到我們在營運方面所做的工作所帶來的成本改善，然後這將體現在收益中。因此，我們沒有給出具體的指導，但我認為同比相對持平是一種思考方式。

Okay. Understood. That's helpful. And then maybe a follow-up on the ORV retail in 1Q, that 3%. Can you just talk about maybe the cadence over the quarter and what you're seeing so far in April?

好的。明白了。這很有幫助。然後可能是第一季 ORV 零售的後續行動，即 3%。您能否談談本季的節奏以及您在四月所看到的情況？

Yes. I mean what I would tell you is that the commentary I provided pretty much sums it up. The Rec market around razor specifically remain weak. We've got now 6 quarters of that performance. In the Ranger business, utility has remained pretty solid, pretty strong. And so we did have to try and adapt within the quarter. But as we see those trends continuing through the year, we're -- as we talked about in my prepared remarks, we're making those changes in production rates at Monterrey and in Huntsville to adjust for those trends that we see. So we were probably a little bit more hopeful that the rec would start to stabilize. And I think the fact that inflation is at 3.5% I think people are having to make a lot of trade-offs. Gas is still expensive. And with the hope of interest rate relief coming, dimming, mortgage rates hit an all-time high. I think you just see consumers continuing to be cautious and careful with how they're spending their money. And that just is going to prolong that replenishment cycle for our Rec business. So at some point in time, we know who these customers are. We know that they're driven by innovation. Once a little bit of relief comes, they're going to want to upgrade their vehicle and we know that through our repurchase cycle. So it's probably more of a delay, whether that's later this year or into next year is anybody's guess at this point.

是的。我的意思是我要告訴你的是我提供的評論幾乎概括了這一點。剃刀相關的休閒市場尤其仍然疲軟。我們現在已經取得了 6 個季度的業績。在 Ranger 業務中，實用性仍然相當穩固、相當強勁。因此，我們確實必須在本季內嘗試適應。但當我們看到這些趨勢在今年持續存在時，正如我們在準備好的發言中談到的那樣，我們正在蒙特雷和亨茨維爾的生產力進行這些變化，以適應我們看到的這些趨勢。所以我們可能對記錄能開始穩定更有希望。我認為通貨膨脹率為 3.5%，人們必須做出很多權衡。天然氣還是很貴。隨著利率減免的希望越來越渺茫，抵押貸款利率創下了歷史新高。我認為你會看到消費者在花錢的方式上繼續保持謹慎和謹慎。這只會延長我們的娛樂業務的補貨週期。因此，在某個時間點，我們知道這些客戶是誰。我們知道他們是由創新驅動的。一旦稍微鬆一口氣，他們就會想要升級他們的車輛，我們透過我們的回購週期知道這一點。因此，這可能更多的是延遲，目前任何人都在猜測是在今年晚些時候還是明年。

And our next question today comes from Alex Perry of Bank of America.

今天我們的下一個問題來自美國銀行的亞歷克斯·佩里。

I guess just my first question, can you talk about how much new innovation supported retail? What has been the feedback on the RANGER XD 1500 and the Expedition? And then any early reads you can give on the new Indian Scout lineup in the new RANGER lineup as well?

我想這只是我的第一個問題，你能談談新的創新對零售業的支持有多大嗎？對 RANGER XD 1500 和 Expedition 的回饋如何？那麼您可以對新 RANGER 陣容中的新印第安偵察兵陣容進行早期閱讀嗎？

Yes. Well, I mean, I would say that new innovation, we look at the utility segment. And while it's not new, the work that we did to introduce the RANGER North Star and specifically around the call it, the premium and the ultimate lines. Those have become incredibly popular. They've moved into making up a high percentage of that utility revenue. And so That, coupled with the capabilities that we enable through Ride Command+ being one of the only connected vehicles out in the marketplace, great audio systems, all that. I mean, it really makes for an incredible value proposition.

是的。嗯，我的意思是，我想說的是新的創新，我們著眼於公用事業領域。雖然這並不新鮮，但我們為推出 RANGER North Star 所做的工作，特別是圍繞著「高端」和「終極」系列進行的。這些已經變得非常受歡迎。他們已經佔據了公用事業收入的很大一部分。因此，再加上我們透過 Ride Command+（市場上唯一的連網車輛之一）實現的功能、出色的音訊系統等等。我的意思是，它確實帶來了令人難以置信的價值主張。

So when you look at the innovation that's being driven in terms of retail and what we're doing in our RANGER business, that's why we've leaned in so heavy, and it's why we launched the model year '25 new Rangers. There's a lot of incredible commentary around those vehicles. Dealers are anxious to get their hands on them. specifically around the things we've addressed that were some of the detractors that customers had. And we'll have those vehicles out demoing and getting visibility with influencers, which is an important aspect of that business.

因此，當你看看零售方面推動的創新以及我們在 RANGER 業務中所做的事情時，你會發現這就是我們如此大力投入的原因，也是我們推出 '25 新款 Rangers 車型的原因。關於這些車輛有很多令人難以置信的評論。經銷商們迫不及待地想得到它們。特別是圍繞著我們已經解決的問題，以及客戶的一些批評者。我們將展示這些車輛並獲得有影響力的人的關注，這是該業務的一個重要方面。

The XD is now making its way out into the marketplace. Receptivity has been very strong. It is an incredible vehicle with incredible capability. The steel belt technology really affords a smooth riding vehicle that can handle workloads that are equivalent to some of the best pickup trucks out in the marketplace. Expedition, specifically the higher-end trims, the ultimates in the North Star cabs. It's tough to keep up with demand on those. They're really serving the purpose that we have. I'd tell you that there's a little bit playing out in the lower end of that market in general in terms of customers trying to figure out if they want to go with a general or if they want to go with the lower-end Expedition. And so we'll continue to watch and monitor that, do what we do and adapt to it as time goes on.

XD 現已進入市場。接受能力非常強。這是一輛令人難以置信的車輛，具有令人難以置信的能力。鋼帶技術確實提供了一種平穩行駛的車輛，可以處理相當於市場上一些最好的皮卡車的工作負載。探險，特別是高端裝飾，北極星駕駛室的終極產品。很難滿足這些需求。他們確實在服務我們的目的。我想告訴你的是，總體而言，該市場的低端市場正在發揮作用，因為客戶試圖弄清楚他們是否想要選擇將軍，或者是否想要選擇低端的遠徵隊。因此，我們將繼續觀察和監控這種情況，做我們所做的事情並隨著時間的推移進行適應。

The Scout lineup, the team did an excellent job. We started teasing that well ahead of the launch. There's a number of videos you can go watch in terms of influencers who've gotten their hands on those vehicles, ridden them. Bob and I and the management team wrote them late last year. They're incredible motorcycles.

球探陣容，球隊表現優異。我們在發布之前就開始嘲笑這一點。您可以觀看許多有關擁有這些車輛並駕駛這些車輛的影響者的影片。鮑伯和我以及管理團隊在去年年底寫了這些文章。它們是令人難以置信的摩托車。

We know dealers are very excited. We gave them a essentially a sequestered view back in January when Bob and I were with Mike Dougherty and team at the dealer meeting down in Arizona. So they were able to get an advanced view of the bikes, the launch campaign and they were incredibly anxious to get those things out in the marketplace. So as I talked about in my prepared remarks, it brings in new customers to the Indian segment. It's the largest selling bike we have, and we know that it is a funnel into larger bikes and a lifetime of Indian ownership. So we're really excited about it. I'm proud of the team. The innovation continues to exceed our expectations and we've now got a good solid 3 years of incredible launches across just about every part of our business, and I think that sets us up well for the long term.

我們知道經銷商非常興奮。一月份，當鮑勃和我與邁克·多爾蒂（Mike Dougherty）和團隊一起參加亞利桑那州的經銷商會議時，我們給了他們一個本質上隱藏的視角。因此，他們能夠深入了解自行車、發布活動，並且非常渴望將這些產品推向市場。正如我在準備好的演講中談到的，它為印度市場帶來了新客戶。這是我們擁有的銷量最大的自行車，我們知道它是進入大型自行車和印度人終生擁有的一個管道。所以我們對此感到非常興奮。我為我們的團隊感到自豪。創新繼續超越我們的預期，我們現在已經在過去的三年裡在我們業務的幾乎每個部分推出了令人難以置信的產品，我認為這為我們的長期發展奠定了良好的基礎。

Perfect. That's helpful. And then just my quick follow-up is I wanted to ask what is embedded in terms of the guidance in terms of rate cuts. I think prior year contemplating 3 rate cuts. Is that still the expectation where are you sort of waiting to see how things play out?

完美的。這很有幫助。然後我的快速後續行動是我想問一下降息指導包含什麼內容。我認為去年考慮了 3 次降息。這仍然是你在等待事情如何發展的期望嗎？

Yes. So we had originally embedded 3 rate cuts, at this point, we're down to 2, but we've got them late in Q4. So there's no meaningful risk to those rate cuts in terms of actual interest expense for the company or dealer or for our share of dealer floor plan. As we said earlier, the real impact is just we have a view that the rate cuts will at least provide some stimulus, maybe not actually financially but mentally to consumers. And if that doesn't happen, we'll be in the environment we're in, which is what we've got contemplated right now. So it won't be meaningful either way for us.

是的。因此，我們最初實施了 3 次降息，目前已降至 2 次，但我們在第四季末進行了降息。因此，就公司或經銷商的實際利息支出或我們在經銷商平面圖中所佔的份額而言，這些降息並不存在重大風險。正如我們之前所說，真正的影響只是我們認為降息至少會提供一些刺激，也許實際上不是在經濟上，而是在精神上對消費者。如果這種情況沒有發生，我們將處於我們現在所處的環境中，這就是我們現在所考慮的。所以這對我們來說都沒有意義。

And our next question today comes from David MacGregor with Longwall Research.

今天我們的下一個問題來自 Longwall Research 的 David MacGregor。

I wanted to just ask about the production curtailments. So you talked about taking down Snow RZRs, Slingshot, Green. You picked up RANGER. How should we think about the impact of the production curtailments on 2Q as it would relate to or compared to maybe the first quarter?

我只是想問一下減產的情況。所以你談到了拆除 Snow RZR、Slingshot、Green。你拿起了 RANGER。我們應該如何看待第二季減產的影響，因為它可能與第一季相關或比較？

Well, in Q2, so we were down nearly $500 million in revenue for the full year, and most of that was in Q1. So Q2 looking relatively flat in comparison to last year will be a fair amount of volume. We took a lot of marine out of Q1 relative to -- particularly relative to the year before, but even relative to a normal year. So marine will be -- will start to pick up a little bit as we get into seasonality. And then really, the RANGER -- add -- the added RANGER build helps offset a weaker RZR build. So pretty much an even trade-off there. Snow doesn't really come into play until Q3, Q4. And like we said in our prepared remarks, the snow build for the year will be down because dealers are still sitting on a fair amount of model year -- snow model year '24 inventory that didn't sell this season given the lack of snow. So I think it will still play out the way we had originally guided, which was quarter-over-quarter revenue year-over-year, 23% versus 24% revenue being relatively flat through the remaining 3 quarters.

那麼，在第二季度，我們全年的收入減少了近 5 億美元，其中大部分是在第一季。因此，與去年相比，第二季看起來相對平穩，成交量將相當可觀。相對於——特別是相對於前一年，但甚至相對於正常年份，我們在第一季削減了很多海軍陸戰隊員。因此，隨著我們進入季節性，海洋將開始回升。然後，實際上，RANGER——添加——添加的 RANGER 版本有助於抵消較弱的 RZR 版本。所以這幾乎是均衡的權衡。雪直到第三季、第四季才真正發揮作用。正如我們在準備好的演講中所說，今年的降雪量將會減少，因為經銷商仍然持有相當數量的年份車型 - 由於缺乏降雪，24 年的雪車型庫存在本季沒有售出。因此，我認為它仍將按照我們最初指導的方式發揮作用，即季度環比收入同比，23% 與 24% 收入在剩餘 3 個季度相對持平。

And the only thing I'd add, David, is it sounds relatively simple in terms of, well, we'll take RANGER up to offset RZR and Snow. The operational teams who are already doing pretty substantial work. I mean, obviously, we don't make all those products in the same facilities. And so behind the scenes, there's a lot of work being done to work within the confines of Roseau, Huntsville and Monterrey to work through how those impacts of rebalancing Snow, Slingshot, RZR and RANGER are executed. And in light of the improvements that we made starting last year and gain momentum on in the first quarter. I have a lot of confidence in the team to be able to execute on that. But it is a change, but it's the right thing to do because not only does it lean into where we have strong retail, but it also recognizes where retail softer and consistent with what we keep reiterating, it helps us manage that dealer inventory position with our network, and that's incredibly important to us.

David，我唯一要補充的是，這聽起來相對簡單，我們將採用 RANGER 來抵消 RZR 和 Snow。營運團隊已經做了相當大量的工作。我的意思是，顯然，我們並不是在同一工廠生產所有這些產品。因此，在幕後，羅索、亨茨維爾和蒙特雷的範圍內正在進行大量工作，以研究如何執行重新平衡 Snow、Slingshot、RZR 和 RANGER 的影響。鑑於我們從去年開始所做的改進以及在第一季取得的勢頭。我對團隊能夠執行這項任務充滿信心。但這是一個改變，但這是正確的做法，因為它不僅傾向於我們擁有強大零售的地方，而且還認識到零售疲軟的地方，並且與我們不斷重申的一致，它幫助我們管理經銷商庫存狀況我們的網絡，這對我們來說非常重要。

The other piece of dealer inventory management, we haven't really talked a lot about, but is kind of reality of the market right now is we are focused on managing trim levels also. And coming out of the pandemic, there's been a lot of focus for consumers on sort of higher-end trim levels. And so I think really across all products and really across all manufacturers, everybody was leaning into their highest trim level products. I think that was true in auto as well. And as the market started to change, consumers are looking for some more of the entry-level trims that they can do accessorize later after their purchase to keep the initial purchase price a little bit lower. And so starting last year, we started adjusting those trim levels, and we continue to do that. So it's not just having the right number of units, but it's having the right trim level of units in the field, and we think we've made a lot of progress on that. And it plays to our strength because we've got the biggest accessory business in the industry. And so if a consumer buys a vehicle that doesn't have as many accessories on it. We've got the most likely opportunity to sell them those accessories later at good margins. So it's a good switch for us.

我們還沒有真正討論過經銷商庫存管理的另一部分，但目前市場的現實是我們也專注於管理裝飾水平。疫情過後，消費者更加重視高端裝潢水準。因此，我認為，在所有產品和所有製造商中，每個人都傾向於使用他們最高裝飾等級的產品。我認為汽車領域也是如此。隨著市場開始發生變化，消費者正在尋找更多的入門級裝飾，以便在購買後可以進行裝飾，以保持初始購買價格稍微低一些。因此從去年開始，我們開始調整這些裝飾水平，並且我們將繼續這樣做。因此，這不僅僅是擁有正確數量的單位，而且是在現場擁有正確的單位修剪水平，我們認為我們在這方面已經取得了很大進展。這發揮了我們的優勢，因為我們擁有業內最大的配件業務。因此，如果消費者購買的車輛沒有那麼多配件。我們最有可能有機會稍後以豐厚的利潤向他們出售這些配件。所以這對我們來說是一個很好的轉變。

Yes. That make sense. The second question I had was just regarding your cost savings program, the $150 million that you've talked about. How should we think about how much of that makes it to the bottom line in your guidance versus maybe being channeled into other investments?

是的。有道理。我的第二個問題是關於你們的成本節約計劃，也就是你們所說的 1.5 億美元。我們應該如何考慮其中有多少會成為您指導中的底線，而不是可能被引導到其他投資？

So the $150 million is embedded in the guidance as falling to the bottom line as cost improvement. I mean, obviously, there'll be puts and takes on other operational things like warranty and absorption with volumes as volumes move around. But the whole $150 million is true cost savings. And like we said, it's -- it builds through the year, so it will have a bigger impact later in the year, but you'll see margins improve sequentially through the quarters.

因此，1.5 億美元被納入指引中，隨著成本改善而下降到底線。我的意思是，顯然，隨著銷量的變化，其他營運方面也會發生變化，例如保固和吸收量。但這 1.5 億美元確實節省了成本。正如我們所說，它是全年累積的，因此將在今年晚些時候產生更大的影響，但您會看到利潤率在各個季度中連續改善。

Yes. I mean I think when you look at the fact that we're talking about the year being down from a revenue standpoint, but pushing margins up, we're doing everything we can. We're being prudent from an operating expense standpoint. But when we look at our manufacturing facilities and baseline back to 2019, and I'm not necessarily suggesting 2019 is the hallmark for us, but it's a good comparison point. There's a lot that we have to get out of those businesses. Some of that is tougher because things like commodities are -- while coming down sequentially or still elevated from where they were labor rates are elevated, but there's a lot of other inefficiencies that crept into the facilities that we've got to get back to. And we're not saying that 2019 is the benchmark. We think we can be better than that, but that's the focus, which means we have to get all that to the bottom line.

是的。我的意思是，我認為當你看到這樣一個事實時，我們正在談論今年從收入的角度來看下降，但提高利潤率，我們正在盡我們所能。從營運費用的角度來看，我們持謹慎態度。但當我們回顧 2019 年的製造設施和基準時，我並不一定認為 2019 年是我們的標誌，但這是一個很好的比較點。我們必須從這些業務中擺脫很多東西。其中一些更困難，因為像大宗商品這樣的事情雖然連續下降或仍然高於勞動力價格，但還有許多其他低效率問題滲透到我們必須恢復的設施中。我們並不是說 2019 年是基準。我們認為我們可以做得更好，但這就是重點，這意味著我們必須將所有這些納入底線。

And the last questions comes from James Hardiman with Citi.

最後一個問題來自花旗銀行的詹姆斯哈迪曼。

I just wanted to ask one more question on the inventory front. So you've given us a lot of bread crumbs, I think you said inventory was flat sequentially, 3 turns for RANGER and for India. Is there any way to just give us an aggregate where inventory is year-over-year or versus 2019? I can't believe we're still comparing things to 2019, but it's at least some reference point. Any way to think about where we are in aggregate?

我只是想再問一個關於庫存方面的問題。所以你給了我們很多麵包屑，我想你說過庫存連續持平，RANGER 和印度的庫存為 3 轉。有什麼辦法可以為我們提供同比庫存或與 2019 年相比的庫存總量嗎？我不敢相信我們仍在與 2019 年進行比較，但這至少是一些參考點。有什麼方法可以思考我們整體處於什麼位置？

Yes. I mean -- so like we said, we're flat. If you exclude youth and the new products, we're down 2. If you think about RZR, we're down high single digits quarter-over-quarter from Q4 total rack same way. I think I commented earlier, Marine is flat. And normally, we would have built a lot of boats going into seasonality. So we feel good about where that is. RZR, we would have built kind of 15% to 20% going normally coming out of Q4 into Q1 headed into Q2 into seasonality. And even raise RANGER rec is not up significantly. So we didn't -- it's not like we built tons of inventory there either and a lot of it is in the new products. So overall, we feel pretty good about where we are. And hopefully, that's enough to get you to.

是的。我的意思是——就像我們說的，我們持平。如果您排除年輕人和新產品，我們會下降 2。我想我之前評論過，海軍陸戰隊是平的。通常情況下，我們會建造很多季節性的船隻。所以我們對這個地方感覺很好。 RZR，我們通常會建立 15% 到 20% 的利率，通常從第四季度進入第一季度，進入第二季度進入季節性。而且即使提高RANGER的rec也沒有明顯提升。所以我們沒有——我們也沒有在那裡建立大量庫存，其中許多都在新產品中。總的來說，我們對自己的處境感覺很好。希望這足以讓您做到這一點。

But just to clarify, those are all sequential numbers, right, which I think a lot of us sort of -- we don't normally think about it that way. So is there any way to put that in the context of last year.

但需要澄清的是，這些都是連續的數字，對吧，我想我們很多人都是這樣的——我們通常不會這樣思考。那麼有沒有辦法將其放在去年的背景下。

Well, I mean the problem, James, is when you look at Q1 of last year, we're up 29%. But Q1 of last year, on average, the network had 80 days or less of inventory, which is well below where the industry has ever been. We were still in a restocking position. And so I think until we get ourselves work through the year, the year-over-year comparisons while they're interesting, they don't necessarily tell you a lot. I mean what we're spending time on is the absolute levels of inventory by product across the network by region, by dealer. And we're looking at the measures that really matter in terms of how quickly is that inventory turning, what's the retail trend that we're seeing on it, what's the current, noncurrent mix so that we can adjust. And that's what's really driving us to make the corrections that we do. And frankly, the challenge for us is 2x everybody else, just given the size and complexity of our business. But like I said, when we look at the data that comes through CDK and we can see our performance relative to the other OEMs we are outperforming the group. And I'll continue to reemphasize that because we have talked about this for the last couple of years. We don't just talk about it. We're actually acting on it. A lot of folks are talking about it, but when we look at the data, they aren't acting on it. And we take it seriously. We know that we're a big part of the dealers business. And so it really is up to us to take the lead. And hopefully, they'll continue to put the pressure on the other guys or work them out of their dealerships.

嗯，我的意思是，詹姆斯，問題是當你看看去年第一季時，我們成長了 29%。但去年第一季度，該網路的平均庫存天數為 80 天或更少，遠低於該行業以往的水平。我們仍處於補貨狀態。因此，我認為，在我們完成這一年的工作之前，逐年比較雖然很有趣，但不一定能告訴你很多資訊。我的意思是，我們花時間研究的是整個網路中按區域、按經銷商按產品劃分的庫存絕對水準。我們正在研究真正重要的指標，包括庫存週轉速度、我們看到的零售趨勢是什麼、當前和非當前的組合是什麼，以便我們進行調整。這才是真正促使我們做出糾正的原因。坦白說，考慮到我們業務的規模和複雜性，我們面臨的挑戰是其他人的兩倍。但正如我所說，當我們查看透過 CDK 提供的數據時，我們可以看到我們相對於其他 OEM 的表現優於該集團。我將繼續再次強調這一點，因為我們在過去幾年中已經討論過這一點。我們不只是談論它。我們實際上正在採取行動。很多人都在談論它，但當我們查看數據時，他們並沒有採取行動。我們認真對待它。我們知道我們是經銷商業務的重要組成部分。因此，我們確實有責任發揮領導作用。希望他們能繼續向其他人施加壓力，或將他們從經銷店中解僱。

Got it. That make sense. And then I think, Mike, in your prepared remarks, you talked about what dealers are doing in response to some of the pressure you talked about, wrote down, reduced OEMs, fewer shipments and then contributing their own promotional dollars. I guess, first, is there any concern about the health of the dealer base? Could we see a pickup in dealer failures? But then also that reduced OEM seemed like a significant comment that I wanted to circle back on. I'm assuming we're talking about maybe some of the low-end players, but that feels like that could be a positive to you guys longer term if we're able to sort of rationalize the OEM space.

知道了。有道理。然後我想，麥克，在你準備好的演講中，你談到了經銷商正在做什麼來應對你談到的一些壓力，寫下，減少原始設備製造商，減少出貨量，然後貢獻自己的促銷資金。我想，首先，經銷商群的健康狀況是否有擔憂？我們會看到經銷商倒閉的情況增加嗎？但同時，減少 OEM 似乎也是一個重要的評論，我想再討論一次。我假設我們談論的可能是一些低端玩家，但從長遠來看，如果我們能夠合理化 OEM 空間，這對你們來說可能是積極的。

Yes. Yes, we -- so a couple of things from a health standpoint, obviously, we are concerned and keep a very close eye on this. Within each of our businesses, we have a dealer management group. We get a lot of good data through the Wells Fargo JV. And if you look at the history of that JV, I mean, even during the '08, '09 time period, because of the proactive nature of how we manage that, the dealer failures were pretty small. Quite frankly, what does concern me is the behavior of some of the other OEMs because, obviously, with 70% of our dealer network shared, 100% of our boat network shared. It isn't just up to us. Hopefully, because of the behavior we exhibit, it helps the dealers put some of that same pressure. When we've been out with the dealers, like I said in my prepared remarks, One of the things that during the pandemic is they were bringing in any OEM that had availability.

是的。是的，我們——從健康的角度來看，顯然，我們對此感到擔憂並密切關注。在我們的每項業務中，我們都有一個經銷商管理小組。我們透過富國銀行合資企業獲得了大量良好的數據。如果你看看該合資企業的歷史，我的意思是，即使在 08 年、09 年期間，由於我們管理方式的主動性，經銷商失敗的情況也相當小。坦白說，我真正擔心的是其他一些原始設備製造商的行為，因為顯然，我們共享了 70% 的經銷商網絡，共享了 100% 的船舶網絡。這不僅取決於我們。希望我們所表現出的行為能幫助經銷商施加一些相同的壓力。當我們與經銷商合作時，就像我在準備好的演講中所說的那樣，在大流行期間，他們引進了任何有供應的原始設備製造商。

Even if those OEMs were delivering in a year, a fraction of anything that we would given delivery constraints, they were bringing that inventory in because people are coming in and whether it's a rec vehicle or a pontoon boat, they wanted something. But now as the market is shaking out, in a lot of instances, those short lines that they brought in did play more to the value lower-end buyer, who has really retreated in this marketplace. They're highly interest rate sensitive. Discretionary income is much lower and these are highly discretionary purchases. So they're getting low priority relative to cost of living, increases that they're continuing with. So as we've talked with dealers, they've been pretty straightforward that one of the options that they're looking at is they've got to move the boats they have or they've got to move the vehicles they have, but they don't plan to continue to carry some of those lines.

即使這些原始設備製造商在一年內交付，只是我們給予交付限制的任何東西的一小部分，他們也會帶來庫存，因為人們正在進來，無論是休閒車還是浮船，他們都想要一些東西。但現在，隨著市場的震盪，在許多情況下，他們引入的那些短線確實對價值低端買家發揮了更大的作用，他們實際上已經在這個市場上撤退了。他們對利率高度敏感。可自由支配的收入要低得多，而且這些都是高度自由支配的購買。因此，相對於他們繼續增加的生活成本而言，他們的優先順序較低。因此，正如我們與經銷商交談時，他們非常直截了當地說，他們正在考慮的選擇之一是他們必須移動他們擁有的船隻，或者他們必須移動他們擁有的車輛，但是他們不打算繼續使用其中一些線路。

And so we're not going to get into names and all that kind of stuff because, quite frankly, it varies by dealer by region. But I think it is reflective of the dealer understanding that moving forward, whether you look at our pontoon business, our Off-Road business, our motorcycle business, they are a disproportionate share of the market and we're the player to really bet on as they go forward.

因此，我們不會討論名稱和所有此類內容，因為坦白說，它因經銷商和地區而異。但我認為這反映了經銷商的理解，即向前邁進，無論你看看我們的浮橋業務、越野業務還是摩托車業務，它們都佔據著不成比例的市場份額，而我們才是真正值得押注的參與者當他們前進時。

And our next question comes from Tristan Thomas-Martin with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Tristan Thomas-Martin。

I have one question on pricing. Looking at your RANGER 25 lineup, base models are -- it seems like there's been price productions on the premium, I think they're higher year-over-year, but with that adoption. So how should we think about your overall 25% pricing on average across all your products? And then second part of the question, what's the margin difference between a factory installed accessory relative to one that you ship into the dealer channel?

我有一個關於定價的問題。看看你們的 RANGER 25 系列，基礎型號似乎已經有溢價生產，我認為它們逐年更高，但隨著採用率的提高。那麼我們應該如何考慮您所有產品的平均 25% 整體定價呢？然後是問題的第二部分，工廠安裝的配件相對於您運送到經銷商通路的配件之間的利潤差異是多少？

Answer the second question first. The margin difference is not significant. The bigger advantage to factory installed is that you don't -- you get more. Typically, people buy more when they're shown a fully accessorized vehicle. And then also you don't have to worry about a dealer or the customer selecting a non-Polaris accessory because it's already on the vehicle. So that's the bigger advantage. I think the way to think about pricing. There's been a lot of price noise in the market coming through the pandemic between MSRP increases, surcharges and now increased promo -- and so I think across the OEM space, you're seeing people as new model years come out, sort of adjust that mix of MSRP, surcharge and promo I don't know that the impact on net price is going to be particularly significant. It's just where it shows up.

先回答第二個問題。邊際差異並不顯著。工廠安裝的更大優勢在於您無需獲得更多。通常，當人們看到一輛配備齊全的車輛時，他們會購買更多。而且您也不必擔心經銷商或客戶選擇非 Polaris 配件，因為它已經安裝在車輛上。所以這是更大的優勢。我認為考慮定價的方式。由於大流行，市場上出現了很多價格噪音，建議零售價上漲、附加費增加，現在促銷力度加大——所以我認為在 OEM 領域，隨著新車型的推出，人們會做出一些調整建議零售價、附加費和促銷的組合我不知道對淨價的影響是否會特別顯著。這就是它出現的地方。

That said, I don't think the industry has got a tremendous amount of pricing power going into model year '25, given just all the increases that have happened in the current state of the consumer. I think what you'll see us focus on, you saw it well in RANGER is we try to get the trim levels right so that the customer is comparing vehicles that are spec-ed in the ways they want to buy them. And sometimes that's taken stuff off on lower trends and adding things on higher trims, but that's something that we tweak every year to try to get the trim level right for what the consumer is coming into dealership and asking for them.

也就是說，考慮到當前消費者狀態下發生的所有成長，我認為該行業在 25 款車型上沒有巨大的定價能力。我想你會看到我們關注的重點，你在 RANGER 中看到的很好的是，我們試圖獲得正確的裝飾水平，以便客戶能夠比較他們想要購買的規格的車輛。有時，我們會在較低的趨勢中去掉一些東西，並在較高的裝飾上添加一些東西，但這是我們每年都會調整的東西，以嘗試使裝飾水平適合消費者進入經銷店並要求他們的東西。

And our final question today comes from Robin Farley with UBS.

今天我們的最後一個問題來自瑞銀集團的羅賓法利。

So you mentioned your expectation that you're about gaining share through the year. But you also talked about how other OEMs have some more work to do that maybe other -- I don't know if I don't know if that was specific to ORV, but you mentioned that others may have more work to do in terms of clearing inventory. So I guess, I mean, wouldn't that sort of suggest that it will be tough to grow share, not that share loss to another OEM that's clearing inventory is meaningful or long term. But wouldn't that make it difficult to grow share, if you're sort of saying others have more inventory clearing to do than Polaris has?

所以你提到了你對今年獲得份額的期望。但你也談到了其他OEM 如何還有更多的工作要做，也許是其他的——我不知道我是否不知道這是否是ORV 特有的，但你提到其他人可能還有更多的工作要做清理庫存。所以我想，我的意思是，這是否表明增加份額會很困難，而不是說份額損失給另一家正在清理庫存的原始設備製造商是有意義的或長期的。但如果你說其他公司比北極星有更多的庫存清理工作要做，那麼這是否會導致增加份額變得困難？

Yes. I mean it's not helpful. And there certainly are pockets. I mean, when we talk about share, the internal discussion is far more in-depth by model, by trim line, things like that. So there are areas that -- it has presented a far bigger challenge. We're not going to go crazy trying to protect when we're battling someone who's clearing inventory that's a year or more old. The good news is that, that eventually comes to an end, and we'll be on a better foot as we move forward. And as the last question indicated, we're making real-time adjustments between price and promo to make sure that we're reflecting where the market is. And given the innovation that we have around our products and the competitive nature, I'd stack us up #1 relative to anybody coming after us.

是的。我的意思是這沒有幫助。當然還有口袋。我的意思是，當我們談論份額時，內部討論會透過模型、裝飾線等進行更深入的討論。因此，有些領域提出了更大的挑戰。當我們與正在清理一年或更長時間庫存的人作戰時，我們不會瘋狂地試圖保護。好消息是，這種情況最終會結束，隨著我們的前進，我們會處於更好的狀態。正如最後一個問題所示，我們正在價格和促銷之間進行即時調整，以確保我們反映市場狀況。考慮到我們在產品方面的創新和競爭性質，相對於我們之後的任何人，我認為我們排名第一。

So I feel great. I look at the new products, that new RANGER is going to be highly desired. The new Scout is going to be highly desired. We're just now getting momentum around Expedition and XD. And then certainly, as some of the rec markets come back around razor with the new products that we introduced over the past several years with the XP and the Pro, we feel really good about the position that we've got there. Within our marine business, we've refreshed a ton of the Godfrey line. We've refreshed and are refreshing a lot of the Hurricane models. We went after the low end of the Bennington and obviously, we're going to continue forward on that. So we'll have a lot of new models from our Marine segment. So I feel really good about where we're at, and we'll manage those competitive dynamics and make sure that we're staying disciplined around dealer inventory.

所以我感覺很棒。我看看新產品，新的 RANGER 將會非常受歡迎。新的偵察兵將會非常受歡迎。我們現在剛剛在 Expedition 和 XD 方面取得了進展。當然，隨著我們在過去幾年推出的 XP 和 Pro 等新產品，一些刮鬍刀市場重新回歸刮鬍刀市場，我們對我們所取得的地位感到非常滿意。在我們的船舶業務中，我們更新了大量的戈弗雷系列。我們已經刷新並正在刷新許多颶風模型。我們追求的是本寧頓的低端，顯然，我們將繼續前進。因此，我們的船舶部門將推出許多新型號。因此，我對我們所處的位置感到非常滿意，我們將管理這些競爭動態，並確保我們在經銷商庫存方面保持紀律。

Great. And just one follow-up on you think about restocking and kind of what floor share will look like after everybody has gone through this inventory clearing, which it sounds like if you're expecting retail for the industry to be down modestly for the year. It sounds like maybe Q2 will be the last kind of big clearing. And when you think about the others restocking, some dealers talk about some OEMs that are not as penetrated, right, in terms of dealer penetration. They can still charge close to MSRP. And so they can make money on even though it's a lower-priced product than a Polaris product. And I guess how do you think about competing for floor share when dealers are restocking if they're saying they can make more on a different OEM price point but not have to kind of compete with other dealers carrying that same brand. Is there anything that you can sort of do to combat that dynamic?

偉大的。接下來，您會考慮重新進貨，以及在每個人都完成庫存清理後，樓層份額會是什麼樣子，如果您預計今年該行業的零售額將小幅下降，那麼這聽起來像是。聽起來也許第二季將是最後一種大清理。當你想到其他人補貨時，一些經銷商會談論一些原始設備製造商，他們在經銷商滲透率方面沒有那麼滲透，對吧。他們的收費仍然接近建議零售價。因此，即使它的價格比北極星產品低，他們也可以賺錢。我想，當經銷商補充庫存時，如果他們說他們可以在不同的 OEM 價格點上賺更多錢，但不必與其他擁有相同品牌的經銷商競爭，那麼您如何看待爭奪市場份額。你能採取什麼措施來對抗這種動態嗎？

I mean I'm sure there's some pockets of that, but I wouldn't say that's a large scale. I think you sit down and you spend time like we do, talking with our dealers, I mean, it's evident we are such a big part of the majority of our dealers. And that's important from a profitability standpoint. And they know and they've seen what's happened when they carry some of these smaller brands and you get into difficult times and they don't have as sophisticated inventory management. Any margins that they were making on those quickly get eroded because they carry too much inventory and they're paying all the interest costs.

我的意思是我確信有一些這樣的東西，但我不會說這是一個很大的規模。我想你坐下來，像我們一樣花時間與我們的經銷商交談，我的意思是，很明顯我們是大多數經銷商的重要組成部分。從獲利能力的角度來看，這一點很重要。他們知道並且他們已經看到了當他們擁有一些較小的品牌並且你陷入困難時期時會發生什麼，而他們沒有那麼複雜的庫存管理。他們在這些產品上獲得的利潤很快就會被侵蝕，因為他們持有太多庫存，並且要支付所有利息成本。

So I think the good dealers that take a long-term view, understand that and really drive to make sure that we've got a strong relationship with them. And I think the dealer cultivation we do, whether it's in Indian or Off-Road or our Marine business is really setting the bar high, and I have a lot of confidence that we'll continue to build those relationships.

因此，我認為優秀的經銷商會著眼長遠，了解這一點，並真正努力確保我們與他們建立牢固的關係。我認為我們所做的經銷商培育，無論是在印度、越野還是我們的海洋業務，確實設定了很高的標準，我非常有信心我們將繼續建立這些關係。

Yes. And we've continued to evolve. For most dealers, we are far and away the largest dollar profit contributor to their dealerships, our North Star Rewards program that we use to manage our dealers there's a lot of criteria in that around floor space and how they need to present our brands. And there's real money tied to it and the dealers understand that, and we manage it. So I feel like we're in a good position to deal with that type of situation, Robin.

是的。我們不斷發展。對於大多數經銷商來說，我們無疑是他們經銷商最大的美元利潤貢獻者，我們用北極星獎勵計劃來管理我們的經銷商，在佔地面積以及他們需要如何展示我們的品牌方面有很多標準。這與真正的資金掛鉤，經銷商了解這一點，我們也對其進行管理。所以我覺得我們有能力應付這種情況，羅賓。

And this concludes today's question-and-answer session and today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

今天的問答環節和電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路，度過美好的一天。