Consumer - Additional Details from Our Latest Checks...

研报英文原文证据摘录

Consumer - Additional Details from Our Latest Checks...

en the tariff / production dynamics. Given better retail

momentum, inventories are well positioned at this time.

(=) Boats: Trends have been choppy depending on the dealer, region, and product type. Premium continues to

outperform value categories though the industry as whole remains somewhat soft, particularly relative to expectations

coming into the year which was assumed to be a return to growth. Still, inventories levels look healthy today and much

better than a year ago; promos are commensurate with a continually difficult macro backdrop. Rising aluminum prices

are putting upward pricing pressure on some fishing boats and pontoon boats at a time when the consumer is unable

to digest much of the inflation.

(=/+) RVs: Retail trends have improved over the last several months. Retail in March was very weak, April improved

modestly, and dealers saw modest growth in May (although it is still early). Despite the improving trends our dealer

checks' sentiment remained largely unchanged as higher gas prices and macro-economic headwind weigh on the

outlooks. The industry would also need to see a steep acceleration in retail just to make up for the lost sales in the first

four months of the year. Inventories are mostly good today, but the decel in retail to start the year has increased risk

of inventory creep.

(+) Harley Davidson: Retail trends have continued to accelerate through April and into May and many of our dealer

contacts mentioned their inventory levels were too low at this point. Dealers are optimistic on the trajectory of the Harley

brand under the leadership of the new CEO. The introduction of Sprint and return of the Sportster should help widen

the target market and act as a marketing tool for Harley.