HARLEY-Davidson eked out a fourth-quarter profit that beat estimates as sales fell as the rugged American brand boost incentives to offset high-borrowing costs on slow-selling motorcycles.
The Milwaukee-based motorcycle manufacturer posted earnings per share of 18 US cents in the period, surpassing the 2 US cent average of analysts’ estimates compiled by Bloomberg. Sales fell to US$792 million, the company reported on Thursday (Feb 8). Analysts had projected revenue of US$879 million.
Harley has continued to make progress on its strategic plan “despite the current challenging environment for the industry,” said chief executive officer Jochen Zeitz in a statement.
Zeitz, a former Puma SE executive who took the helm in 2020, has tried to turn Harley around by raising prices on tighter inventory and investing in bigger, more profitable models.
But that strategy has been tested as higher borrowing costs crimped consumer appetite for big discretionary purchases like motorcycles.
Harley doled out generous promotions in December to help move sluggish inventory, according to UBS analyst Robin Farley. The subsequent sales bump was the result of “price slashing” and not recovering demand, she wrote in a Jan 16 note to clients. BLOOMBERG
