We motorcycle Manufacturer Harley-Davidson On Wednesday, we reported higher-than-expected quarterly profits as we focused on selling high-margin touring and cruiser bikes under the new turnaround plan.
HarleyStruggling to grow sales beyond the baby boomer’s core market, in February refocusing on big bikes, eliminating poor-selling models and losing models Announced plans to increase profits at. dealer And the market.
The company’s performance in the last quarter was exaggerated by a good statistical base as most U.S. dealers suffered a pandemic-related blockade last year, but CEO Jochen Zeitz’s strategy gained momentum. Showed signs of being.
For example, bicycle sales in the United States, Harley’s largest market, were higher than in the second quarter of 2019.
Similarly, motorcycle manufacturers were able to increase sales despite spending less on marketing and promotion.
“As we implement our hardwire strategy, we are beginning to see the first evidence,” Zeitz said in a statement.
The company will increase operating profit guidance from motorcycle sales from the previous estimate of 7% to 9% and from 6% to 8% in 2021 due to rising tariffs on bicycles in the second largest market, the European Union. It has been revised downward.
However, it raised the operating profit growth forecast for that financial services segment.
On an adjusted basis, Harley earned $ 1.41 per share quarterly, surpassing analysts’ average of $ 1.17 per share, according to Refinitiv’s IBES data.
Revenues from motorcycles and related products almost doubled to $ 1.33 billion. According to the company, shipments in the second quarter doubled to 56,700 units.
Harley-Davidson Profit Report Suggests Turnaround Plans Are Working
Source link Harley-Davidson Profit Report Suggests Turnaround Plans Are Working