Harley-Davidson’s motorcycle segment is facing challenges in the current economic climate, with the company forecasting flat to a 9% drop in full-year revenue. These challenges are attributed to higher borrowing costs and persistent inflation pressure. As a result, demand for the iconic vehicles in North America has been impacted.
While the 120-year-old motorcycle maker has employed a strategy to sell fewer bikes at higher prices in an effort to boost margins, it has not been sufficient to offset the decline in bike shipments. In fact, global motorcycle shipments fell 13% in the fourth quarter, with dealers maintaining lower inventory due to slow demand.
Retail sales for Harley-Davidson followed a similar trend, experiencing an 11% decline globally, with North America seeing a 9% drop. The company attributes this performance to factors such as higher interest rates, economic uncertainty, and lower sales of non-core motorcycles.
In the fourth quarter, Harley-Davidson’s sales from motorcycles and related products dropped about 14% to $792 million, falling short of analysts’ expectations. However, the company’s profit per share of 18 cents exceeded estimates, which were forecasted at 4 cents per share.
These insights into Harley-Davidson’s performance in the motorcycle segment provide valuable information for industry professionals, investors, and automotive enthusiasts to understand the current challenges and opportunities in the motorcycle industry.
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