Harley-Davidson kicked off its 2014 fiscal year with a first quarter net income of $265.9 million, an 18.1% increase from the profit reported in the same period of 2013.
Consumers purchased 57,415 new Harley-Davidson motorcycles worldwide in the first quarter, up 5.8% from the 54,254 units sold in Q1 2013. U.S. sales accounted for 35,730 units, up 3.0% from 34,706. Despite the increase in U.S. sales, Harley-Davidson says sales were negatively impacted by the poor weather across much of country and the dropping of the Road Glide from its lineup.
Meanwhile, Harley-Davidson reported an 8.2% increase in unit sales in Europe, an 8.9% increase in Latin America and an impressive 20.5% increase in the Asia Pacific region, thanks in part to rising demand in Japan as customers sought to make purchases before a new consumption tax increase kicks in April 1.
“Thanks to the great contributions of our employees, dealers and suppliers, we continue to lead at delivering exceptional customer experiences in 89 countries,” says Keith Wandell, chief executive officer of Harley-Davidson.
Harley-Davidson’s Project Rushmore initiative proved to be a strong draw, with Harley-Davidson increasing the percentage of touring models in its product mix. On the other end of the spectrum, Harley-Davidson also started shipping its new small-displacement Street models during the quarter.
“Our Project Rushmore motorcycles were in high demand in the quarter and we began shipping the Harley-Davidson Street 750 and 500 into select markets. These motorcycles, together with continuous improvement in our operations at every level, underscore the momentum we’ve established as a customer-led company.”
Motorcycle sales brought in $1.3 billion for Harley-Davidson, a 13.1% increase from $1.2 billion reported last year. Parts and accessory sales revenue increased 7.7% to $198.1 million while revenue from general merchandise (consisting mostly of Harley-Davidson MotorClothes apparel) was down 11.1% to 64.1%.
Looking ahead, Harley-Davidson expects to ship from 279,000 to 284,000 motorcycles in 2014, a 7-9% increase over 2013.