[dropcap]O[/dropcap]ur latest survey of powersports dealers indicates that the retail sales momentum dealers saw in February continued in March. We were very encouraged to hear that recreational product sales picked up during the month – although we would note that consumers are taking advantage of the intense competitive environment, which has likely boosted sales (i.e., very competitive pricing in the market today).

There is still a lot of commentary surrounding inventory levels being higher than needed for demand, which the OEMs seem to be responding to given the aggressive spring promotions being offered. While dealer concerns related to consumer spending in economies throughout the oil patch, as well as the uncertainty created by the looming presidential election persists, dealers are optimistic about the future given the interest they have seen across multiple products.

All in, we believe the momentum dealers experienced in March is a good sign for the industry. If the strengthening trends continue as we move into the prime selling season, then dealers will forget the rough patch that was the fourth quarter 2015.

Seth Woolf, a research analyst with Northcoast Research Partners, covers the powersports sector within his consumer sector coverage list. Northcoast Research Partners is an institutional equity research firm located in Cleveland, Ohio.