Harley-Davidson’s profit beats on strong demand for pricier Touring bikes
2024.07.25 12:26
(Reuters) -Harley-Davidson reported a better-than-expected quarterly profit on Thursday, helped by strong demand for its pricier Touring bikes during the summer riding season, sending the company’s shares up about 5% before the bell.
The company has focused on its more lucrative bike models to pad its margins and benefited from the pent-up demand as riders wait to trade in for Harley’s newly launched 2024 Touring models.
“We grew our U.S. market share in a declining market, with notable unit growth of more than 11% in the important core category of Touring,” Harley CEO Jochen Zeitz said.
Under Zeitz, who took over as chief executive in 2020, Harley has focused heavily on its pricier Touring bikes relying on its wealthier customer base to boost profit.
During the second quarter, retail sales of Harley’s Touring and CVO bikes in the United States increased more than 12%.
Global retail motorcycle sales in the quarter were down 3%, while North America retail sales were down 1%. U.S. retail sales were up slightly.
Harley reported a second-quarter profit of $1.63 per share, above analysts’ estimates of $1.40, according to LSEG data.
The company’s sales from motorcycles and related products rose about 13% to $1.35 billion.
