Harley’s U.S. Sales Plunge 13%, Steepest Quarterly Drop in Eight Years
(Bloomberg) -- Harley-Davidson Inc. reported better-than-expected profit as selling more expensive motorcycles takes some of the sting out of a continued drop in sales.
- U.S. retail sales plunged 13 percent in the three months ended in September, the steepest quarterly drop in more than eight years.
- Despite weak U.S. demand and tepid overseas growth, motorcycle-related revenue rose on the richer mix of shipments.
- U.S. sales took a turn for the worse after Donald Trump said he would back a boycott of Harley. The president started directing his ill will toward the company in June, when it said it would move some production overseas to sidestep EU tariffs.
- While the EU’s tariffs on Harley’s bikes jumped to 31 percent earlier this year, from just 6 percent, demand is holding up in that market. Retail sales rose 4.6 percent in the quarter.
- Harley shares rose 1.7 percent to $39.40 as of 7:22 a.m. Tuesday in New York, before the start of regular trading. The stock had dropped 24 percent this year through Monday, when they closed at the lowest since February 2016.