Harley’s pivot to high-margin bikes delivers revenue, income beat By Reuters
© Reuters. FILE PHOTO: The logo of the US motorcycle company Harley-Davidson can be seen on one of its models in a store in Paris, France on August 16, 2018. REUTERS / Philippe Wojazer // File Photo
(Reuters) – Harley-Davidson Inc (NYSE 🙂 reported better-than-expected quarterly earnings and sales on Wednesday, a sign that its turnaround plan, which focuses on selling more profitable bikes to wealthy customers, is starting to benefit the company came .
Amid nearly a two-year decline in sales, Harley redesigned its strategy in 2020 to focus on selling its high-margin touring and large cruiser and trike motorcycles to older and more affluent customers in markets such as the US and Europe.
The bet seems to be paying off as the company reports its third consecutive quarterly revenue increase, albeit from pandemic lows.
“We have seen that many of our strategic hardwire initiatives are developing well and provide encouraging initial evidence for our five-year strategy,” said Harley CEO Jochen Zeitz in a statement.
Harley’s shares rose 1.7% before the opening bell.
Retail sales in the United States, the company’s largest market, rose to 31,699 units in the third quarter from 31,304 units a year earlier.
Motorcycles and related product sales rose 20.4% to $ 1.16 billion for the quarter, above analyst estimates of $ 1.14 billion, according to data from Refinitiv IBES.
Net income rose to $ 163 million, or $ 1.05 per share, from $ 120 million, or 78 cents per share, last year.
Without items, earnings were $ 1.18 per share, above expectations of 70 cents.
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