By John Keilman
Harley-Davidson beat expectations on revenue and earnings but its share price crashed Thursday as global retail sales came in flat despite the introduction of new touring motorcycles.
The company reported a 6% gain in North American retail sales with the introduction of new Street Glide and Road Glide motorcycles, though some dealers said most of the bikes they sold were discounted 2023 models. In Europe and Asia, which did not receive the new models until late in the quarter, sales were down by double digits.
CEO Jochen Zeitz told analysts on a conference call that retail sales could still grow by as much as 9% this year.
The companys quarterly revenue of $1.7 billion was down 3% from the prior year, while earnings per share of $1.72 were down 16%. Both figures were better than analysts expected, but Harleys share price still fell about 15% in recent trading.
-- The companys LiveWire electric motorcycle spinoff sold just 117 bikes in the quarter. Its CEO, Karim Donnez, said it had become the No. 1 on-road electric bike in the U.S. LiveWire expects to take a loss of up to $115 million this year, better than previously anticipated. Its stock was slightly lower in recent trading.
-- Harleys annualized credit losses for the quarter were 3.7%, the highest in five years. The company has introduced a flex financing plan that allows riders to turn in their bikes at the end of the period.
Zeitz plugged a summer movie about a 1960s biker club. The Bikeriders stars Tom Hardy and Austin Butler, and Harley has released a new model, the $25,000 Hydra-Glide Revival, that it says was inspired by the film.
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(END) Dow Jones Newswires
April 25, 2024 12:30 ET (16:30 GMT)
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