By John Keilman

Off-road vehicle maker Polaris $(PII)$ said it won't follow competitors in drastic price cutting even as sales plunge thanks to high interest rates and financially stressed consumers.

The Minnesota-based company said third-quarter sales dropped 23% year-over-year as it cut production in response to bloated dealer inventory. Chief Executive Mike Speetzen said that unlike some competitors, Polaris won't take a loss to get vehicles out the door.

"We're talking about discounts that are up in the $5,000 range with financing offers, dealer cash, you name it," Speetzen said of rivals' inventory-moving strategies.

The company's third-quarter earnings came in at 73 cents per share, short of the 88 cents predicted by analysts, according to FactSet. Sales were $1.72 billion, slightly beneath Wall Street's expectations.

Polaris lowered its full-year guidance for profits and sales. Shares declined 10%.

Additional executive comments:

-- Polaris has cut shipments dramatically this year to prevent dealers from being swamped with inventory, and the company said that will continue in the fourth quarter.

-- The Fed's September interest rate cut hasn't done much to stimulate demand. Consumers will need "many more" cuts before they will be comfortable with big-ticket purchases, Speetzen said.

-- Polaris expects the power sports industry to remain challenged in 2025. "There isn't a magic switch that comes Jan. 1," Speetzen said.

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(END) Dow Jones Newswires

October 22, 2024 13:09 ET (17:09 GMT)

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