06:39 AM EDT, 09/06/2024 (MT Newswires) -- BRP (TSX: DOO and NASDAQ: DOOO) on Friday reported lower earnings and revenue for the second quarter as it moved to reduce network inventory levels. The producer of powersports products, propulsion systems and boats also cut its estimates for fiscal year 2025.

The company reported normalized diluted earnings per share of $0.61, down from $3.21 a year earlier. This beat a consensus forecast at Capital IQ of $0.44.

Diluted earnings per share were $0.09, a decrease of $4.17 compared to last year. This missed a consensus forecast at Capital IQ of $0.51.

Net income was $7.2 million, a decrease of $331.5 million compared to last year.

Revenues fell by a third to $1.84 billion, reflecting the company's focus on reducing network inventory levels. It missed the consensus forecast at Capital IQ of $1.9 billion.

North American Powersports retail sales decreased by 18% compared to an industry that decreased in the high single digits.

In terms of outlook for fiscal year 2025, BRP adjusted its full-year guidance for revenue, now ranging between $7.8 to $8 billion, and for normalized diluted earnings per share, now ranging between $2.75 and $3.25. Capital IQ has been forecasting 2025 revenue of $8.68 billion.

"The retail environment is more challenging with the economic context pressuring consumer demand," said Jose Boisjoli, president and CEO of BRP. "As such, our priority is to continue to proactively manage production and inventory levels, which leads us to revise our year-end guidance."