Harley-Davidson's shares tumble on steeper fall in revenues

Send a link to a friend  Share

[January 28, 2020]  CHICAGO (Reuters) - Harley-Davidson Inc <HOG.N> on Tuesday reported a larger-than-expected decline in its motorcycles revenue hurt by a continuing slide in retail sales in the United States, sending its shares plunging in pre-market trade.

A Harley-Davidson bike is displayed in their office in Singapore October 13, 2016. REUTERS/Edgar Su/File Photo

The company said revenues at its motorcycles, parts & accessories and general merchandise segment fell an annual 8.5% to $874.1 million in the fourth quarter to end-December from $955.6 million a year ago. Analysts surveyed by Refinitiv on average expected revenues to decline 3.7% to $920.14 million in the quarter.

Harley's shares were last trading down 7.2% at $32.34 in pre-market trade.

Harley's challenges in the United States, which accounts for more than half of the company's sales, are well documented - core customers are growing older and outreach efforts to attract new and young riders have yet to show results.

In the December quarter, U.S. retail sales declined for the 12th straight quarter, falling an annual 3.1%.

Harley expects revenues from the motorcycles segment to be about $4.53 to $4.66 billion in 2020 compared with $4.57 billion last year.

Lower restructuring expenses helped the company report higher profits in the latest quarter. Its net income rose to $13.5 million or $0.09 a share in the December quarter from $0.5 million or $0.00 per share a year earlier.

Adjusted profit for the quarter came in at 20 cents a share, compared with 17 cents per share last year.

(Reporting by Rajesh Kumar Singh, editing by Chizu Nomiyama)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.

 

 

Back to top