BRP earnings drop amid softer consumer demand

BRP Inc. saw earnings plunge across all product lines amid dropping demand last quarter, capping off a tough year for the recreational vehicle manufacturer.

Net income at the maker of Ski-Doos and Sea-Doos fell 70 per cent year-over-year to $27.3 million in the quarter ended Oct. 31.

Revenue for BRP’s third quarter totalled $1.96 billion, down 17 per cent from $2.37 billion a year earlier.

“Our retail performance was as anticipated, reflecting a challenging market dynamic due to soft industry trends,” said CEO José Boisjoli, stating that discounts from competitors added to its woes.

A slow start to the snowmobile season has not helped either.

“The snow is a bit late, but now it’s catching up. And we expect good retail this season,” Boisjoli told analysts on conference call Friday, adding that Ski-Doo sales over the next three months remain a “big question.”

After an urge for outdoor activity sparked a sales boom during the COVID-19 pandemic, buyers responded to inflation and interest rate hikes by pulling back from pricey recreational purchases.

BRP revenues have fallen year-over-year for eight straight quarters.

Last month, the company laid off more than 120 employees in its home province of Quebec. The cuts followed some 1,150 layoffs across North America earlier this year, leaving it with roughly 20,000 workers globally.

In October, BRP put its marine businesses up for sale as it looks to focus on powersports products and cut the cable to its money-losing boat brands.

Nonetheless, its diluted earnings of $1.16 per share beat analysts’ expectations of 69 cents, according to financial markets firm LSEG Data & Analytics. The performance boosted BRP’s stock price nine per cent to $74.33 in mid-morning trading on the Toronto Stock Exchange.

This report by The Canadian Press was first published Dec. 6, 2024.

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Christopher Reynolds, The Canadian Press