Consumer - Additional Details from Our Latest Checks...

Research evidence excerpt

Consumer - Additional Details from Our Latest Checks...

and volumes remain flat while sales growth

continues to be driven by inflation. Squishy toys remain the hottest product in the industry with the Squishy Dumpling /

Needoh trend likely to last through the end of the year. The new Star Wars Movie performed better than expected and

while Masters of the Universe was weaker than expected at the box office, but toy sales likely meet expectations. Toy

Story 5, Spider-Man, and Avengers should help toys sales in the rest of 2026. For 2027, Frozen will be an important

catalyst for the industry. Investors walked away without a meaningful change on their view of the toy sector.

(+/-) Off Road Vehicles - ATVs & Side-by-Sides (SxS): Retail sales trends have mostly sustained momentum for both

Polaris and BRP. As inventories have been rightsized, Polaris has begun to reduce incentives. New product should be

announced for Polaris' next year lineup while dealers await a change in strategy for BRP's product given their tariff

cost overhang. Overall, the category continues to perform well, inventories are well-positioned, and dealers remain

optimistic. There was regional variance in retail sales momentum so we did get the sense there was more volatility in

May/June than what we saw in March/April. Investors walked away from our meetings with a more positive view of

the powersports sector.

(-/=) Boats: Marine retail trends remain soft and premium is outperforming the value segment (which has more

competition from the used market). Weather was noted by several dealers as a headwind to sales in the last month or

two but the commentary was region dependent. Inventory is well-positioned today vs the past years (both number of

units and aged inventory are in good places).