<\/p>\n
My husband and I went for a one-hour ATV ride through the woods the other day, and the sheer thrill was unlike anything else. It is quite different from exploring the rough terrain in a Nissan Terrano, because an enclosed SUV keeps you comfortable and secure, but open-air motorsports offer a higher level of freedom.\u00a0<\/p>\n
During the pandemic, a lot of people recognized that exact rush, flocking to showrooms seeking socially distanced and liberating outdoor recreation. In 2020 and 2021, there was a significant surge in motorcycle and ATV sales.\u00a0<\/p>\n
However, despite the demand, the market also saw many shutdowns of production and assembly plants along with reduced parts supply, according to Fortune Business Insights. Then, as travel resumed, the market faced severe post-pandemic supply chain constraints and a sharp normalization in consumer demand.<\/p>\n
By 2025, total U.S. retail sales of new motorcycles and scooters dropped 7.6% year-over-year, while ATV sales fell 3.5%, according to the Motorcycle Industry Council (MIC).<\/p>\n
Yet, for the nation’s largest powersports retailers, this post-COVID cooling off hasn’t just been a headache \u2014 it has triggered a radical operational shift. Rather than chasing raw unit volume, RideNow Group (NASDAQ: RDNW), previously known as RumbleOn, quietly shuttered five underperforming locations to improve profitability.<\/p>\n
RideNow closes 5 stores, improves operating profits\u00a0<\/p>\n
RideNow reported its second quarter earnings on Aug. 11, disclosing revenue of\u00a0 $296.8 million, down from $299.9 million in the same quarter of 2025. The powersports retailer reported that the decline was driven by the closure of five stores.\u00a0<\/p>\n
The decrease in revenue “was predominantly driven by our store consolidation efforts” with “operating 5 fewer stores,\u201d\u00a0 Executive VP & CFO Joshua Barsetti said during the earnings call.\u00a0<\/p>\n
Related: \u2018Honest alcohol\u2019 company closes last physical locations<\/p>\n
Despite operating fewer stores, the dealership group achieved a 3% year over year higher same-store revenue of $291.5 million, and its adjusted EBITDA rose to $20.5 million, a 19.2% increase year over year.\u00a0<\/p>\n
RideNow also recorded a net income of $6.5 million, which compares to a net loss of $32.2 million.\u00a0<\/p>\n
\u201cBy prioritizing strategic execution and continuous improvement, both in our stores and across our corporate support center, we are driving the positive momentum reflected in our results today. Our balanced tactical plan combines near-term operational improvements with structural changes to advance our long-term strategic direction, ultimately creating sustained value for our shareholders,\u201d said CEO Michael Quartieri.\u00a0<\/p>\n
RideNow previously announced these closures amid revenue declines\u00a0<\/p>\n
For 2024, RideNow reported total revenue of $1.21 billion, down from $1.36 billion in 2023. Its gross profit also declined to $314.3 million, from $359.9 million in the prior year.\u00a0<\/p>\n
However, amid these declines, the retailer also posted a significant loss reduction, with net loss mounting to $78.6 million, compared to $215.5 million in 2023.\u00a0<\/p>\n
In its annual report, the company announced potential closures.\u00a0<\/p>\n
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\u201cOur strategic plan includes leveraging our nationwide network of dealerships, using our proprietary RideNow Cash Offer technology to grow our pre-owned inventory, reducing our cost structure, and rationalizing our retail footprint by acquiring new retail locations and closing or consolidating existing retail locations,\u201d the company stated.\u00a0<\/p>\n
RideNow warned that closings or consolidations of existing retail locations may not result in immediate cost savings.\u00a0<\/p>\n
RideNow results improved following these closures\u00a0<\/p>\n
Industrywide, 2025 was challenging for the Powersports market.\u00a0<\/p>\n
\u201cThe Powersports market closed 2025 under continued pressure, as elevated interest rates, cautious consumer spending, and ongoing normalization from post-pandemic pricing weighed on values across most segments. Seasonal declines were more pronounced in discretionary and warm-weather categories, while work-oriented and winter-focused segments showed greater stability,\u201d reported Black Book.\u00a0<\/p>\n
For RideNow, however, 2025 showed first signs of improvements, suggesting the closures made a positive impact on the company\u2019s operations.\u00a0<\/p>\n
By closing five stores and consolidating another three into its larger multi-brand stores, the company achieved the following year-over-year improvements:\u00a0<\/p>\n
Adjusted EBITDA: Totaled $46.2 million, a 40.4% increase over fiscal 2024.Same-store units sold: Increased 3.9% in Q3 and 7.7% in Q4. The Q3 gain marked our first period of growth since the post-pandemic peak.Same-store revenue: Increased 0.6% in Q3 and 6.3% in Q4.Same-store gross profit: Grew by 1.8%, 12.0%, and 13.8% in the second, third, and fourth quarters, respectively.
\nSource: RideNow Annual Report 2025\u00a0<\/p>\n
\u201cThis momentum proves that our turnaround is taking hold and gives me immense confidence in our strategy, our team, and our future,\u201d the company stated.\u00a0<\/p>\n
RideNow (once known as RumbleOn) closes five stores, improving operating profits.<\/p>\n
Pipat Yapathanasap / Getty Images<\/p>\n
Motorcycles and scooters dominate the powersports vehicle industry\u00a0<\/p>\n
Every motorsport vehicle has its own ups and downs, and each has its own unique purpose and provides a special kind of kick. That\u2019s why there are so many to choose from, depending on the activity, terrain and weather you need it for. The popularity and demand also varies.\u00a0<\/p>\n
In the first quarter of 2026, sales of new motorcycles and scooters increased by 4.2%, while ATV sales grew 2.5% year over year among leading brands, according to data from American Motorcycle Dealer.\u00a0<\/p>\n
More precisely, motorcycles and scooters accounted for 74.7% of total new-unit sales through Q1, and ATVs represented 25.3%.\u00a0\u00a0<\/p>\n
Vehicle Type<\/p>\n
General Type<\/p>\n
2026<\/p>\n
2025<\/p>\n
Unit Change <\/p>\n
% Change <\/p>\n
Motorcycle <\/p>\n
Scooter<\/p>\n
1,743 <\/p>\n
2,250<\/p>\n
-507<\/p>\n
-22.5<\/p>\n
Motorcycle <\/p>\n
On-Hwy <\/p>\n
63,308<\/p>\n
58,708<\/p>\n
4,600<\/p>\n
7.8<\/p>\n
Motorcycle <\/p>\n
Dual <\/p>\n
16,149<\/p>\n
15,498<\/p>\n
651<\/p>\n
4.2<\/p>\n
Motorcycle <\/p>\n
Off-Hwy <\/p>\n
29,870<\/p>\n
30,131<\/p>\n
-261<\/p>\n
-0.9<\/p>\n
Motorcycle <\/p>\n
Total <\/p>\n
111,070<\/p>\n
106,587<\/p>\n
4,483<\/p>\n
4.2<\/p>\n
ATV<\/p>\n
ATV <\/p>\n
37,613<\/p>\n
36,681<\/p>\n
932<\/p>\n
2.5<\/p>\n
Total <\/p>\n
Grand Total <\/p>\n
148,683<\/p>\n
143,368<\/p>\n
5,415<\/p>\n
3.8<\/p>\n
Table and data source: American Motorcycle Dealer<\/p>\n
Powersports industry trends and what these closures mean for the company\u00a0<\/p>\n
According to May research from McKinsey & Company, U.S. consumers are immediately scaling back discretionary purchases. Notably, even affluent households are aggressively slashing “nice-to-have” expenses as budgets tighten.<\/p>\n
Importantly, buying an expensive vehicle is just the first expense. The maintenance is what might be making some potential buyers, like myself, turn away,\u00a0<\/p>\n
\u201cThe high cost of powersports vehicles is a significant market restraint. These vehicles, particularly those equipped with advanced technologies and premium features, often come with hefty price tags that are not affordable for the average consumer\u2026Ongoing maintenance, repair costs, and insurance premiums further increase the total cost of ownership, making these vehicles a luxury rather than a necessity during periods of unstable disposable income,\u201d points out StraitsResearch.<\/p>\n
Powersports vehicles fall under discretionary spending, just like recreational boats for example. I\u2019ve recently reported how these pressures and shifts in consumer spending have forced the largest US boating retailer, West Marine, to file for Chapter 11 bankruptcy and closed over 90 stores.\u00a0<\/p>\n
While in retail, closing stores can signal trouble or impending bankruptcy, RideNow Group\u2019s closures suggest a turnaround strategy that is yielding results. <\/p>\n
By closing five unproductive locations, they eliminated real estate overhead and drove nearby shoppers into remaining stores. This boosted operating profits, and that is why the company has not reported any new closings this year.\u00a0<\/p>\n
Related: Iconic outdoor retailer closes key store due to retail theft<\/p>\n
#Outdoor #retail #giant #permanently #closes #stores #working<\/p>\n","protected":false},"excerpt":{"rendered":"
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