(Reuters) - Canada’s BRP Inc (DOO.TO) reported a lower-than-expected quarterly profit as the company offered aggressive promotions to stimulate demand for its snowmobiles amid poor snowfall.
BRP, which makes Ski-Doo snowmobiles and Sea-Doo watercraft, said gross margin for the first quarter ended April 30 slipped to 20.9 percent from 23.7 percent a year earlier.
However, the company raised its adjusted earnings forecast for the fiscal year as it expects to launch new products in the coming months.
BRP now expects earnings of C$1.79-C$1.89 per share for the year ending January 2017, compared with C$1.75-C$1.85 per share it had estimated previously.
The company’s net profit rose 33.2 percent to C$110.7 million ($87.07 million), or 96 Canadian cents per share, from a year earlier.
Revenue rose 3.5 percent to C$929.9 million.
The Valcourt, Quebec-based company reported an adjusted profit of 4 Canadian cents per share, missing analysts’ average estimate of 6 Canadian cents, according to Thomson Reuters I/B/E/S.
Reporting by Manish Parashar in Bengaluru; Editing by Anil D'Silva