Polaris Inc. ( PII )  on Tuesday reported first-quarter adjusted earnings per share of 23 cents, beating the analyst consensus of 6 cents.

First-quarter sales were $1.736 billion, down 20% compared to last year. Quarterly sales missed the street view of $1.748 billion.

Primary factors affecting first-quarter sales were lower volume and net pricing driven by higher promotional spending, partially offset by a favorable mix.

Powersports retail sales for the quarter were down 10% versus last year, driven by a decline in snow; first-quarter retail was up 3% when excluding snow.

Quarterly adjusted gross profit margin slumped 248 basis points year over year to 19%.

“With our competitive product portfolio, we gained share in ORV, motorcycles and Marine, and the recent launches in our best-selling full-size RANGER and Indian Scout lineups reflect our strategic focus on Rider-Driven Innovation,” said Mike Speetzen, Chief Executive Officer of Polaris.

Operating expenses were $313 million in the first quarter of 2024 compared to $325 million in the first quarter of 2023 due to lower selling and marketing expenses.

Outlook: The company continues to expect 2024 sales to be down 5% to 7% year over year. 

The company continues to expect adjusted EPS attributed to Polaris common shareholders to be down 10% to 15% versus 2023.

“Looking forward in the year, our focus remains on sound execution in spite of the uncertain macro environment, from managing dealer inventory and delivering for customers, to making continued progress with operational improvements and driving profitable growth,” Speetzen added.

Price Action: PII shares are trading higher by 2.04% to $90.00 premarket on the last check Tuesday.