Harley-Davidson shares plummet as it reports revenue drop

Harley-Davidson on Tuesday reported a larger-than-expected decline in its motorcycles revenue, hurt by a continuing slide in retail sales in the United States, sending its shares plunging in pre-market trade.

The company said revenues at its motorcycles, parts and accessories and general merchandise segment fell 8.5 per cent to $874.1 million (€793 million) in the fourth quarter from a year ago.

Analysts surveyed by Refinitiv on average expected revenues to decline 3.7 per cent to $920.14 million in the quarter. Its shares were down 6.6 per cent at $32.55 in pre-market trade.

Harley’s challenges in the United States, which accounts for more than half of sales, are well documented – core customers are growing older and efforts to attract new and young riders have yet to show results. In the December quarter, US retail sales declined for the 12th straight quarter. Sales also declined in Europe, Harley’s second-biggest market. Faced with weak demand, the company shipped 213,939 bikes to its dealers in 2019 – the lowest in nine years.