According to Reuters, Harley-Davidson has had a bit of a rough start to 2017. Despite plans to create new and improved motorcycle models in the upcoming years, plus maintaining their stronghold on American Manufacturing, the American-made motorcycle company has reported at 14.7% loss in motorcycle shipments so far this year. They’ve kept their financial outlook unchanged, though they have also seen a 4%, or $57.00 loss in the stock market just this week. Their motorcycle shipments specifically fell by 70,831 units in the quarter ending on March 26, compared with its forecast shipments of 66,000-71,000 units.
Reportedly, Harley-Davidson said they continue to expect full-year shipments to be flat to down modestly – according to analysts, their first quarter shipments were helped by warmer-than-usual weather, that led to an early start to the annual riding season. That likely resulted in a [temporary] pull-forward in demand from the second quarter. Harley-Davidson even took the rare step of offering rebates on its 2016 motorcycles to U.S. dealers – as an incentive for them to shift a backlog that had previously restricted sales of its latest models.
The demand for Harley’s motorcycles continues to be slow as its loyal baby boomer demographic ages. Rival companies, such as the Indian brand bike maker Polaris Industries Inc, as well as Japan’s Honda Motor Co Ltd, offer popular discounts – making it even more difficult for Harley-Davidson to maintain a competitive edge in the industry. Their revenue per motorcycle fell about $342; to $15,526 in their first quarter. Their net income fell – to 25.6% to be exact, down to $186.37 million, or $1.05 per share, in the same quarter. Take a look at a breakdown of Harley-Davidson’s Revenues and Gross Profits for 2017’s first-quarter below, and tell us in the comments if you think they can save themselves from what looks like an impeding breakdown.