Harley-Davidson Sales and Revenue are Down in Q2 of 2018
We're going to find out how H-D plans to right the ship next week.
The negative trend continues for Harley-Davidson in the second quarter of 2018. In its Q2 results announced on Tuesday, the motorcycle brand reported a net income of $242.3 million, which is a 6.4 percent drop compared to the same time last year. Revenue is down 2.9 percent and global sales have declined 3.6 percent compared to Q2 2017.
Breaking that down a bit, international motorcycle sales were up 0.7 percent while U.S. sales tumbled 6.4 percent. H-D saw some nice growth in Western Europe which is liking the revamped Softails and sales are up slightly in Brazil and Mexico. Sales are stagnant in Japan, Canada, and Australia.
"Our results in the second quarter reflect business performance that is in line with our expectations. With the focus of every employee and dealer, we are making progress building the next generation of Harley-Davidson riders in line with our long-term objectives. Our manufacturing optimization, demand-driving investments, and commitment to manage supply in line with demand remain on target and continue to strengthen our business," said Matt Levatich, president and CEO of Harley-Davidson.
It’s worth noting that 601+cc motorcycle sales in the U.S. were down 6.3 percent in Q2 2018 and down 0.8 percent in Europe in the same timeframe. H-D market share for big bikes in the States is at 48.4 percent which is down just 0.1 percent compared to Q2 2017. Harley-Davidson market share is up 0.9 percent to a total of 10.4 percent in Europe.
This is bringing H-D a little closer to its goal of half of its annual volume being international sales by 2027, but not in a very good way. It’s getting closer to that goal by international sales going up a little and domestic sales going down quite a bit.
So what is Harley-Davidson going to do? The Milwaukee brand has been in rough shape for a while now and it brings us no joy to consistently report bad news for the American icon. We’re not exactly sure how H-D is going to get out of its funk yet, but Harley announced that it’s going to announce details on its “accelerated strategy for growth” on Monday 7/30. Check back on Monday for the details of that plan and whether we think it’s the right direction for Harley-Davidson.