Polaris, Inc. (NYSE:PII) Q2 2024 Earnings Conference Call July 23, 2024 10:00 AM ET

Company Participants

J.C. Weigelt - VP, IR
Michael Speetzen - CEO & Director
Robert Mack - CFO & EVP of Finance and Corporate Development

Conference Call Participants

Joe Altobello - Raymond James
Megan Alexander - Morgan Stanley
Fred Wightman - Wolfe Research
Craig Kennison - Baird
Joe Nolan - Longbow Research
Alex Terentiew - Bank of America Merrill Lynch
Noah Zatzkin - KeyBanc Capital Markets
James Hardiman - Citigroup
Sabahat Khan - RBC Capital Markets
Robin Farley - UBS Securities

Operator

Good day, and welcome to the Polaris Second Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions]. Please note, today's event is being recorded. I would now like to turn the conference over to J.C. Weigelt. Please go ahead.

J.C. Weigelt

Thank you, Rocco, and good morning or afternoon, everyone. I'm JP Geygan, Vice President of Investor Relations at Claire's. Thank you for joining us for our 2020 for second quarter earnings call. We will reference a slide presentation today, which is accessible on our website at ir dot polaris.com.

Joining me today are Mike Speetzen, our Chief Executive Officer, and Bob Mack, our Chief Financial Officer, both our prepared remarks. I'm right in the second quarter as well as our expectations for the remainder of 2024. Then we'll take your questions. During the call, we will be discussing various topics which should be considered forward looking for the purpose of the Private Securities Litigation Reform Act of 1995.

Actual results could differ materially from those projections in the forward-looking statements. You can refer to our 2023 10-K for additional details regarding risks and uncertainties. All references to second quarter actual results in 2024 guys are for our continuing operations in our reported and adjusted non-GAAP basis, unless otherwise noted. Please refer to our Reg G reconciliation schedules at the end of the presentation for the GAAP to non-GAAP agenda over to Mike Speetzen. Go ahead, Mike.

Michael Speetzen

Good morning, everyone. Thank you. Increasingly channel quarter, resulting in sales and adjusted EPS came in below our expectations. We will take some time this morning to talk through those results, provide an update on our annual guidance as well as discuss the outlook for our long term 2026 targets. Considering the current environment.

First, I want to start with the second quarter results. Sales were down 12%, impacted by actions we took in response to macroeconomic and industry headwinds. Headwinds included persistent inflation. In addition to a prolonged cycle with elevated interest rates, we've seen consumer confidence we can, especially for large discretionary purchases.