Arctic Cat Reports 2017 First Quarter Results

This is not good.

The economics of losing your way. Polaris is crushing AC – not good. This is going to be a big hole to climb out of. It will be very interesting to see how sled sales go this year.

Did you even read the article? It was known well before that they would be losing money. Polaris has its own demons. Hundreds of thousands in recalls on there UTV line. Undesirable machines. Cat will be just fine.

Hope we have a good snowy and long winter the snowmobile industry needs one. Arctic Cat needs one ! The motorsports industry right now is slow. Hate to say it but we also need a good election in November the real economic numbers for the country aren’t good.

Chris Metz sure like the buzzwords “strategic initiatives”.

YUP–“strategic initiatives” as in short term results do not count on Chris Metz watch, YET. As in– these are the results of the other guy. New players , new game plan, a lot at risk . Give them a chance .

NASDAQ:ACAT JULY 29/ 4:48 Down 14.56% – 3Month Outlook>> FLAT — Could have a sleeper on our hands in December ??

The biggest problem is the dealer network, seems like every town the premiere dealers all handle Pol or CanAm. Arctic lost so many quality dealers over the last few years is the reason! It all seems to go back to the sales and marketing, it is embarrassing to me (nothing but cats since 1968, and an awful lot if them) to see my brand become such a underachiever in the field! It is still the best in quality of any brand! Does the marketing department even mention where the competitors manufacture their products? The only one still made in USA, figure it out Cat, get rid of you sales team and marketing team, start over with a new team with progressive sales people and marketing people, you need to understand , the customers and dealers drive your business, you have let both down. I will never buy another brand and never have, but I am tired of defending my brand with everyone who used to ride Cat. Denver has one dealer, Phoenix has two dealers, are you serious? Two huge markets and Polaris owns you! Listen to me, get up off the mat and get Cat back on top, you have the best product, worst marketing and sales department. Management get out of your comfortable offices and see what is going on in the field. Yes I have more to say if someone from Cat wants to reply to me!789ff9m

The cat Utvs and atvs don’t sell unless they discounted thousands I bought a 15 wildcat sport limited for 5k off ,you can buy a new xr 700 over 4K off mark,I’m friends with some dealers there very little interest in the thundercat people want the new 800 and new chassis,if we have a bad winter will cat keep going?

We were going to get a new Arctic Cat Dealer in my home town. They agreed on everything and pretty much had the contract ready to be signed. Then the AC rep came into the meeting to sign the contract and told them they had to take twice as many units as they previously agreed to. Killed the entire deal. I dont know what in the hell they are thinking but in my opinion even a small dealer in the area is better then none! Also, let them start slow and build a customer base before cramming a bunch of units down their pie hole.

http://m.startribune.com/arctic-cat-loses-10-6-million-in-second-quarter/388669831/

The corner will be turned but it’s a tough climate right now.

@JimR – I agree with your comments
@Dave – AC is on the comeback trail. They are doing all the right things to put this iconic brand back on top!
@Bulldog – AC would rather have fewer “top quartile” dealers than lots of smaller dealers.

We’ve lost countless dealers in NY because of the corporate demand to have dealers take more units than they can sell. A snowmobiler in the northern Adirondacks has to travel 60+ miles to get to the nearest Arctic dealer. This while passing good dealers who used to sell Arctic. The dealers in Indian Lake, Tupper Lake, Malone and Saranac have stopped selling Arctic which has led to primarily Ski-Doo taking the customers. In the Hudson Valley there also has been a constant rotation of who is dealing Arctic, a dealer dating back to the early ’70’s was recently lost. Its a shame. But like alot of us on here I’ll only buy the machines from Thief River.

I agree 295cat and people like convenience. Why drive 60 – 100 miles to buy or look at a new cat when 10 minutes away there is a Polaris or Ski-Doo dealer? We have lost lots of Dealers down here in the Madison Wisconsin area and there have been no new dealers stepping up to take their place. How does AC expect to get product out there so people can see, touch and test drive a new machine? Are farmers really going to drive that far to buy an ATV or UTV and then have it serviced that far away or just go with a brand that has a much closer dealer? Think about what you would do if you arent brand loyal. AC needs to rethink how many machines they make dealers take and worry more about getting machines on show room floors where salesman can sell them to the locals.

Kymco – American made?
Yamaha – American made?
Sherco – American made?

How can anyone claim Arctic Cat is American made…..

Ok let’s get technical, Polaris and Can Am ATV and UTV both assembeled in Mexico , sit on I-25 and I-10 and watch them roll by. Point is Thief River quality needs to be recognized and promoted

I’m like others that have lost of their local dealer. My dealer just sent everything back to TRF in June. I feel the passion and loyalty many Arctic Cat owners have are due to the dealers and the relationships they have built up over the years. Forcing all these small dealers out because of low sales is wiping out this tie. I’ve only purchased new Arctic Cat products from two different dealers dating back to 1972. The closest dealer (with a good reputation) is now 45 miles away. Arctic Cat, you’re making it very hard to keep buying your products!

Cat destroyed their dealer network in our area, a lot of us bought cat products because they had small dealers that knew their product and would go out of their way to keep the machines running, they shut down our long time local dealer and left us in the dust. MEGA dealers and CAT do not go together!!!

AllenO:

My sled has Cats home built 600 cc in it and my quad has cats 550 in it, both built in St. Cloud. Sorry to bring facts into this conversation.

Cat is thinking like G.M.- eliminate the small dealers and make the large ones renovate the dealerships, that seems to have worked for General Motors,but their selling cars / and trucks, not sleds and atvs.

JimR:

I’ll pass on the 550 and 600…… That’s a fact….. I thought Cat Pride was the big horse power machines.

If there thinking like GM, there in trouble because Obama ain’t gonna bail them out! I am wondering where these mega dealers are? They must all be back east and north cause there isn’t anything even close in Colo, Ariz, or New Mex,. Every two or three years I gave to go find another dealer cause the last one dropped Cat because of the corporate and sales BS.

AllenO:

What are you trying to say? Pass on the best sled engine in the business and will be the same with the 800 that is coming? Compensating for some body issues?

I agree Dave. That and their machines are not selling like Polaris and BRP right now. I would think they would want as many dealers as they can get pushing their products to get them out to potential buyers. Also, everything I read right now says they are trying to lower dealer inventory by offering huge discounts on left over machines. Well quit shoving so many machines down dealers throats and you might not have that problem AC! Let them order what they think they can sell… especially if they are just starting out. I am really disappointed that we are not getting a dealership in Cross Plains, WI because AC tried making them take more machines then they were comfortable with.

JimR

I read the Cat’s are heavier than Yamaha’s now….

Also lost a dealer this spring. I had purchased 15 new sleds from them over the years. I was loyal to them and they were very good to me and kept me on the trails. But like the others, they could no longer afford the inventory levels.

They like myself were not impressed with Cat’s marketing strategy. The new turbo is cool but the ex-dealer and my riding buddies would have much rather had a new 800. Not a lot of interest in the large turbos in our riding circle. Not sure how the sales stack up on those models compared to the 600 and 800. No spring show is also a tough sell, like to look at sleds, touch and feel before making a purchasing decision.

Hopefully there will be positive changes going forward. Been riding Cats since 70’s and would like to continue!

The problem is that in the past, CAT has hired on to many none sledder people that do not understand how the sledding industry works. To many corporate people in charge that do not get it. You cannot continue to operate a company in this kind of business the way they are. I would highly encourage Cat to return to some of the ways that they know has worked for years and that is a foundation for a great company moving forward. Cat needs to belly up and say to their dealers and customers, that we got your back.

Very true Jim w. You don’t need to know a lot about the product to be upper management but it helps. You need to know how to handle budgets and people. What is dangerous is when they think they know. Remember that thier styling committee is probably made up by people that think they know style because they bought a Lexus, and wear snappy looking dress pants.

“Share our Passion”
Do they; does Arctic Cat upper management share the passion that so many of us have grown to love.
Do they even use the products they build and is there the chance we will meet them on the trails?

I agree with Oldcrow. John has reported here in many, many reports of the AC workers that live and breath the sport 24/7 and have the passion. Similar passion needs to be found in the top tier of management and then AC will come out on top. Perhaps the top tier were not fortunate enough to be born and raised in this type of environment or location but they truly need to understand and embrace others that have this passion and use them as mentors. Support the riders and dealers as others have suggested and the need to cut a dollar from the budget will be replaced by the dollars spent from the loyalists that will buy the products.

Great, now I was just told the place in my hometown that was going to be an AC Dealer until AC tried to make them take too many units is now going to be a Polaris Dealer. There are Polaris dealers in almost every town around us. Wake the F_ _ _ UP CAT! You are missing the boat!! How are people supposed to buy your products with no dealers around? Polaris gets it… why don’t you??

For sure! getting the brand out there is one thing but above and beyond have to have the dealers and factory support! I love the Brand as I know you all do too hopefully the factory reps read Arctic Insider as much as we do! I Bleed Green!!!!