US bike maker Harley-Davidson Inc on Wednesday reported a better-than-expected quarterly profit, as it benefited from its deal with promoting high-margin touring and cruiser bikes beneath a brand new turnaround plan.
Harley, which has struggled to extend gross sales past its core baby-boomer market, in February unveiled a plan to spice up income by shifting its focus again to massive bikes, whereas eliminating slow-selling fashions and exiting money-losing dealerships and markets.
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Although the company’s efficiency within the newest quarter was exaggerated by a positive statistical base as most of its dealerships within the United States had been hit by pandemic-linked lockdowns final year, it supplied signs that Chief Executive Officer Jochen Zeitz’s technique was gaining traction.
For instance, unit gross sales of its bikes within the United States – Harley’s greatest market – had been greater than within the second quarter of 2019.
Similarly, the bike maker has been in a position to drive up gross sales regardless of spending much less on advertising and marketing and promotions.
“We are starting to see the initial proof points as we execute our Hardwire Strategy,” Zeitz mentioned in an announcement.
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The company revised down working earnings steerage from bike gross sales to six% to eight% in 2021 from 7%-9% estimated earlier, citing greater tariffs on its bikes within the European Union, its second-biggest market.
It, nevertheless, lifted the working earnings progress forecast for its monetary companies section.
On an adjusted foundation, Harley earned $1.41 per share within the quarter, beating analysts’ common estimate of $1.17 per share, in keeping with IBES knowledge from Refinitiv.
Revenue from bikes and associated merchandise practically doubled to $1.33 billion. The company mentioned its shipments doubled to 56,700 models within the second quarter.
This story has been revealed from a wire company feed with out modifications to the textual content.