In this Monday, April 24,
2017, photo, Harley-Davidson Road King motorcycles are
displayed at the Motorcycles of Manchester dealership in
Manchester, N.H. On Tuesday, July 18, 2017,
Harley-Davidson reported lagging retail sales and
shipments as new riders opt for used motorcycles over
newer, more expensive ones.
MILWAUKEE — Shares in Harley-Davidson
tumbled nearly 10 percent after the company reported
lagging retail sales and shipments as new riders opted
for used motorcycles over newer, more expensive ones.
The company lowered its guidance for
motorcycle shipments in 2017 by about 6 to 8 percent as
retail sales of Harley-Davidson motorcycles fell 9.3
percent in the U.S. and 6.7 percent globally from the
same quarter last year. Motorcycle shipments for the
second quarter fell 7.2 percent from last year's second
The company said it is strategizing
how to better balance sales of new and used motorcycles
as the industry tries to attract millennials and other
young adult riders.
"Plenty of millennials ride
motorcycles," said President and CEO Matthew Levatich.
"A lot of the data that is easy to get is new motorcycle
sales, but if you look at that used market place, there
are plenty of millennials that are riding, and it's up
to us to inspire even more them to ride and to engage
with Harley-Davidson's products and experiences and the
strategy that we had laid out."
Harley-Davidson on Tuesday reported
second-quarter earnings of $258.9 million, which beat
Wall Street expectations but came in lower than the
$280.4 million for the second quarter last year.
The Milwaukee-based company said it
had net income of $1.48 per share, in part due to lower
costs. That also topped expectations, but fell short of
the $1.55 per share for the same period last year.
The average estimate of nine analysts
surveyed by Zacks Investment Research was for earnings
of $1.37 per share.
The motorcycle maker posted revenue of
$1.58 billion in the period, which fell short of Street
forecasts. Eight analysts surveyed by Zacks expected
$1.6 billion. The company had revenue of $1.67 billion
in the same period last year.
Harley-Davidson shares have declined
about 20 percent since the beginning of the year and
about 4 percent in the last 12 months.