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Harley-Davidson retail sales grow as shipments fall

Harley-Davidson increased global retail motorcycle sales by 5 per cent in the third quarter, led by growth in North America. Shipments and motorcycle division revenue declined as dealer inventories fell. The company raised its annual motorcycle and financing guidance, while quarterly consolidated net income dropped from a comparison period that benefited from financing asset sales.

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Close-up of chrome engine fins, a black engine casing and a footboard on a heavyweight cruiser motorcycle in a bright dealership showroom.

Retail growth accompanies lower dealer inventories

Motorcycle manufacturer Harley-Davidson reported a 5 per cent increase in worldwide retail sales in the third quarter. North American growth accelerated from 3 per cent in the preceding quarter to 9 per cent, marking a fourth consecutive quarter of growth in that region. Global dealer inventories fell 26 per cent year on year and 6 per cent from the previous quarter.[1]

Quarterly earnings amounted to 0.40 dollars per share. The consensus estimate tracked by MarketBeat was 0.4739 dollars. Consolidated net income fell to 43 million dollars from 377 million dollars a year earlier, when sales of financing receivables and securitisation interests had benefited earnings.[1], [2]

Shipments and motorcycle revenue decline

Global shipments dropped 8 per cent to 33,616 motorcycles. Motorcycle division revenue fell 10 per cent to 964 million dollars, while operating income declined 18 per cent to 44 million dollars. The gross margin improved by 173 basis points to 28.1 per cent. Operating expenses decreased 1 per cent to 227 million dollars.[1]

Annual guidance rises for motorcycles and financing

Management raised both annual retail sales and shipment guidance to separate ranges of 135,500–139,000 motorcycles. It forecasts motorcycle operating income of 25–55 million dollars and financing operating income of 60–70 million dollars. Capital investment guidance is 140–165 million dollars. During the quarter, shareholders received 91 million dollars through repurchases and 19 million dollars in dividends; cash stood at 2.1 billion dollars at September’s end.[1]

References

  1. News sourceHarley-DavidsonHarley-Davidson grows retail sales while reducing dealer stocks↩1↩2↩3↩4
  2. News sourceMarketBeatHarley-Davidson reports quarterly earnings of 40 cents per share↩
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