Arctic Cat Posts Slipping Sales
Arctic Cat, the snowmobile and all-terrain vehicle maker out of Thief River Falls, posted a $1.1 million loss in its fiscal first quarter ending June 30.
Net sales totaled at $134.4 million, a $3.6 million difference compared to first quarter last year when net sales amounted to $143.6 million.
“We made continued progress in the first quarter against our stated goals to reposition the business for growth and clean up the inventory overhang,” Arctic Cat CEO Christopher Metz said in a statement. Metz also mentioned a need to continue working with its dealers “to aggressively reduce non-current inventory.”
ATVs took the biggest sales hit, sinking 17 percent from a year ago, making up $52.9 million of Arctic Cat’s revenue. The only sign of sales growth was snowmobiles, which rose 4 percent to $58.2 million. Parts, garments and accessories barely budged in Q1, dropping only 2 percent to $23.3 million.
“We believe that we have strong strategic plans to turn the business around,” Metz said, while hinting, “exciting new product development plans are on track.”
Metz joined the company back in November after the previous CEO, Claude Jordan, exited “involuntary, without cause.”
Additionally, Arctic Cat’s board of directors announced a quarterly cash dividend to its shareholders of $0.125 per share of stock. Price per share closed at $31.71 on Tuesday, before the fiscal first quarter sales were released. Since then, stock prices have slipped nearly 5 percent.