Harley-Davidson Reports Q2 2015 Financial Results

Harley-Davidson reported a 10% drop in motorcycle sales revenue over the second quarter of 2015 while worldwide unit sales volume dipped by 1.4%. Overall, Harley-Davidson made a net profit of $299.8 million in the second quarter compared to $354.1 million last year.

According to the company’s quarterly report, motorcycle sales generated $1.65 billion in sales revenue for the three months ended June 28, 2015, compared to revenue of $1.83 billion in the same quarter last year. Operating income from retail sales saw a 19.6% decrease to $380.6 million from $473.3 million. Harley-Davidson attributes the decreases to a planned decrease in shipments and currency fluctuations.

“In the face of a tough competitive environment, driven mostly by currency and greater competitive activity, we are leveraging our many strengths and meeting the challenge head on,” says Matt Levatich, President and Chief Executive Officer, Harley-Davidson, Inc. “Our actions during the quarter have had a positive impact. We are encouraged by the momentum at retail as the quarter progressed, both in the U.S. and internationally.”

Unit sales decreased to 88,931 motorcycles from 90,218 sold in the second quarter of 2014. Despite the small overall decrease, Harley-Davidson reports strong sales for the updated Road Glide, Ultra Low, Ultra Limited Low, CVO Street Glide, Freewheeler trike and the Street 500 and 750.

U.S. sales decreased by just 435 units to 57,790 units over the quarter. Harley-Davidson says last year’s sales received a bump from initial enthusiasm for its Project Rushmore upgrades while this year’s figures were were down because of diverting some inventory on Street models for rider training fleets. Still, Harley-Davidson’s smaller bikes did particularly well, with combined Street and Sportster sales seeing a double-digit growth.

Overall, Harley-Davidson made a net profit of $299.8 million in the second quarter compared to $354.1 million last year.

Outside of the U.S., Harley-Davidson saw a 16.6% growth in the Pacific Asia, though those gains were erased by decreased sales in several other markets, especially Brazil, Europe and Canada, where Harley-Davidson is transitioning to a direct distribution system as of Aug. 4.

For the final two quarters of 2015, Harley-Davidson expects to ship 276,000 to 281,000 motorcycles, an increase of 2%-4% from last year.

[Source: Harley-Davidson]