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Key Takeaways
- International sales of Harley-Davidson motorcycles slumped, sending shares plunging.
- The company’s new touring models didn’t arrive at international dealerships until the end of the quarter.
- Despite the international sales decline, Harley-Davidson posted better-than-expected earnings and revenue in the first quarter.
Shares of Harley-Davidson (HOG) plunged on Thursday after the motorcycle manufacturer announced a big drop in international demand during the first quarter.
The company’s stock was down 14.6% at $33.67 at around 2:15 p.m. ET, trading at its lowest level since late January and pushing the stock into negative territory for the year.
Harley-Davidson reported the number of retail bikes sold in Europe, the Middle East, and Africa sank 11% to 5,264, while those in the Asia-Pacific region declined 12% to 6,034. The North American market, the company’s biggest, saw an increase in sales of 6% to 27,486. The overall total of 39,405 20 fewer than the year-ago period.
Harley-Davidson explained that its new touring models, Street Glide and Road Glide, helped drive North American sales. However, those motorcycles didn’t arrive at international dealers until the end of the quarter.
The news offset Harley-Davidson’s better-than-expected earnings. The company posted adjusted earnings per share (EPS) of $1.72, a decline of 16%, as revenue slid 3% to $1.73 billion. Still, both were above forecasts.
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