Harley Davidson Reports Weak 3rd Quarter
(In conjunction with this post, also read the one from last week on Winnebago, especially the quote from Ron Muhlenkamp at the top).
As expected, since they preannounced weak results in early September, Harley Davidson (HOG) reported a weak 3rd quarter (3Q Earnings Release).
Revenue was down 5.8% and net income 15.3% from the year ago period.
Revenue in their core business of selling Harley Davidson motorcycles was down 8.5% on a 10.8% decrease in shipments of Harley Davidson motorcycles.
Significantly, weak results were entirely driven by weak US sales. Shipments of Harley Davidson motorcycles were actually up 24.8% internationally. It was the fact that they were down 18.2% in the US that weighed down the business for the quarter.
This represents a large drop off from the 2nd quarter (2Q Earnings Release) when shipments of Harley’s were up 17.1% in the US and overall revenue from the sale of Harleys was up 22%.
It’s been quite a ride for Harley the last couple of years as the outlook and emerging reality for consumer spending have gyrated back and forth (2 Year Chart).