Harley-Davidson's profit beats on strong demand for pricier touring bikes
During Q2, retail sales of Harley’s Touring and CVO bikes in the US increased more than 12%
HARLEY-DAVIDSON reported a better-than-expected quarterly profit on Thursday (Jul 25), helped by strong demand for its pricier Touring bikes during the summer riding season, sending the company’s shares up about 5 per cent before the bell.
The company has focused on its more lucrative bike models to pad its margins and benefited from the pent-up demand as riders wait to trade in for Harley’s newly launched 2024 Touring models.
“We grew our US market share in a declining market, with notable unit growth of more than 11 per cent in the important core category of Touring,” Harley CEO Jochen Zeitz said.
Under Zeitz, who took over as chief executive in 2020, Harley has focused heavily on its pricier Touring bikes relying on its wealthier customer base to boost profit.
During the second quarter, retail sales of Harley’s Touring and CVO bikes in the United States increased more than 12 per cent.
Global retail motorcycle sales in the quarter were down 3 per cent, while North America retail sales were down 1 per cent. US retail sales were up slightly.
Harley reported a second-quarter profit of US$1.63 per share, above analysts’ estimates of US$1.40, according to LSEG data.
The company’s sales from motorcycles and related products rose about 13 per cent to US$1.35 billion. REUTERS
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