Harley-Davidson Posts A Dramatic Drop In Sales For Q2 2017
Harley-Davidson have had a rather miserable Q2 2017…
Harley-Davidson have posted their Q2 sales figures, and they’re not looking good. Q2 sales have plummeted by a rather staggering 9.3% in the USA… With sales this bad, it looks like the US motorcycle won’t be making any gains this year, and Harley-Davidson should probably rethink …if that was ever on the cards at all. Ducati or no Ducati, HD have already responded by scaling down its delivery numbers to US dealers – but it’s not just US sales that have suffered. It’s a global trend.
Sales Are Down Globally For Q2 217
Overall international sales are down by 2.3% for Q2 2017 too, which puts Harley-Davidson’s overall sales numbers down by a whopping 6.7% globally. There hasn’t been any speculation on why sales have plummeted, but Harley-Davidson have recently turned to the media stating that their sales figures are low because millennials don’t want motorcycles – which is a bit of a sweeping generalization. It might just be that millennials don’t want Harley-Davidson motorcycles, since not all motorcycle manufacturers have seen dramatic losses. In fact, Triumph (for example) has posted dramatic gains this year…so the millennial argument doesn’t really hold water.
Regardless of who’s buying what, Harley-Davidson have reacted to the losses by scaling back deliveries, and they’re also planning on scaling back their workforce too. Harley-Davidson’s CEO Matt Levatich mentioned that they were planning on reducing their workforce by 180 jobs, but he didn’t elaborate how that was going to be enacted. Either way, it’s going to be a tough second half of the year for HD, whose stock dropped by over 10% as soon as this sales report was issued.
Sales are down, and naturally, overall revenue and net income has taken a punch too. The 2017 Q2 income is down by 8.3% compared to last year, and overall revenue fell by 5% from 1.86 billion in 2016 to 1.77 billion this year. As you can see in the graph above, even merchandising and souvenirs took a dramatic loss. But it’s not all bad news. While sales suffered pretty much everywhere, there was one market showing gains. Latin America showed positive growth, and it’s a market that should keep growing.