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T H E # 1 B U S I N E S S M A G A Z I N E F O R T H E A M E R I C A N V- T W I N A N D C U S T O M M O T O R C Y C L E PA R T S I N D U S T RY
Worldwide Harley sales flat for first six
months; Q2 domestic US market share up
but sales -5.2%, international sales +4.3%
arley-Davidson’s second
quarter 2016 worldwide
retail motorcycle sales
were down by -1.9 percent
on weak domestic U.S. industry
results. Harley-Davidson retail
motorcycle sales in the U.S. were
down -5.2 percent compared to the
year-ago quarter, with the overall
U.S. industry down -8.6 percent for
the same period.
Meaning that at 49.5 percent, Harley
managed to claw back 2.0 percentage
points of market share in a down market
compared to the second quarter in 2015.
International retail sales increased by
+4.3 percent over the prior year quarter.
For the first six months of 2016 worldwide
retail motorcycle sales were down -0.6
percent from the same period in 2015;
international sales were up +4.4 percent,
offset by a -3.4 percent decline in U.S.
retail sales.
"We are pleased with our ability to gain
market share in the U.S.," said Matt
Levatich, President and Chief Executive
Officer, Harley-Davidson, Inc.
"Competition in the U.S. remains intense,
and our demand-driving investments are
showing traction."
Given market softness in the U.S., the
H
continued competitive environment and
global economic uncertainty, the company
is taking the precautionary step of
lowering its full-year motorcycle shipment
guidance, revising its forecast to ship
264,000 to 269,000 motorcycles to
dealers worldwide in 2016, which is
approximately between -1.0 percent and
+1.0percent from 2015. The company
says this action is consistent with its longstanding commitment to manage supply
in line with demand. The company had
reduced 2016
unit shipment
forecast
previously provided full-year shipment
guidance of 269,000 to 274,000
motorcycles.
In the third quarter, the company expects
to ship 48,500 to 53,500 motorcycles
compared to 53,472 motorcycles shipped
in the year-ago period.
"While our investments to grow product
awareness and ridership globally are
beginning to take hold in a number of
markets, current conditions in the U.S. and
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economic headwinds in other parts of the
world combine to raise caution for us as
we continue to focus our strategy to drive
demand and deliver strong returns to
shareholders," said Levatich.
Retail sales in Europe, the Middle East and
Africa (EMEA) were up by +8.2 percent in
the second quarter and +8.4 percent for
the first six months. Asia Pacific retail sales
were up by +0.8 percent in the quarter
and up +3.4 percent for the first six
months compared to 2015. Canada retail
sales grew +2.0 percent in the quarter and
+7.2 percent for the first six months versus
a year ago as the market there continued
to respond favorably to the company's
transition to direct distribution.
Revenue from motorcycles and related
products was up versus the prior quarter
behind increased motorcycle shipments.
Operating margin as a percent of revenue
decreased versus the prior year, primarily
as a result of lower than expected gross
margin driven by unfavorable mix,
currency and manufacturing expenses.
Financial Services operating income was
higher in the second quarter compared to
the year ago period, driven by a $9.3
million gain generated from a full
securitization. The company now expects
Continued on page 6 >>>
SEPT 2016
ISSUE #206
MY2017