Harley-Davidson Reports Better Than Expected Sales

http://behindthewheel.com.au/harley-davidson-reports-better-expected-sales/

Harley-Davidson has reported better than expected financial results for the first quarter of 2016. Total global sales for the company were up by 1.4%.

Sales within the US actually dropped by 0.5%, but sales growth of 4.5% in overseas markets boosted the overall sales for the company and led to the positive result.

Matt Levatich, President and Chief Executive Officer, said he was pleased with how the company’s first quarter results demonstrate the progress the company is making in both driving demand and delivering business performance in a highly competitive environment.

A strong U.S. dollar against other currencies has made motorcycles from Japan and Europe cheaper for customers in the U.S., and combined with increased competition from other brands and an ageing traditional market, has caused a decline in Harley-Davidson’s market share and profitability.

In 2016, the company is increasing its marketing and product development investments to drive demand, particularly in the younger and female markets.

The first quarter results are an indication that Harley-Davidson’s strategy may be working.

Unfortunately though, the company’s shares have slipped more than 8% since the start of April, virtually wiping out its gains during the first three months of the year.

So whilst there are promising signs for the US manufacturer, it would appear that there is still a long way to go. The company is standing by its forecast for 1 to 3% growth in 2016 shipments.

“The increased marketing and new product investments are beginning to take hold and we anticipate continued progress across our focus areas as we dial in and ramp-up our approach,” said Matt Levatich.

About the author

Steve McDowall

Steve is the team’s motorcycle writer and contributes to the podcast each week. He started his “on air” career as a guest on 4BC where he met Joel, and has been with Behind the Wheel now for over 6 years. Steve’s fascination for anything with wheels and an engine started as a child and even though he still loves his cars, he found his true passion was with motorcycles. He is also an accredited rider trainer, consultant and coach. Check out Steve’s website – motorcyclelife.com.au