WionDrive News Desk 
American motorcycle manufacturer Harley-Davidson forecast its full-year revenue for the motorcycle segment to be down by 9% from a year earlier, much below analysts’ expectations. The dip in forecast came as a cutback in consumer spending pressured demand for the brand’s motorcycles in North America. However, price increases and surcharges on select models helped the company sustain margins, but could not offset the decline in bike shipments.
Shares of the Milwaukee-based company were marginally down at midday trading yesterday. “We recognize that the overall macro environment, including high interest rates, add complexity to our customers’ decisions to purchase discretionary products,” Harley-Davidson CEO Jochen Zeitz said on a call with analysts, Reuters reported.
The 120-year-old motorcycle maker, however, beat profit expectations for the fourth quarter as it focused on selling fewer bikes at higher prices to boost margins. The company’s global motorcycle shipments fell 13% in the fourth quarter, compared to a year earlier due to dealers maintaining lower inventory amid slow demand. The company’s retail sales were globally down 11%, led by a 9% fall in North America. “North American retail performance continues to be adversely impacted by higher interest rates, economic uncertainty, and lower sales of non-core motorcycles,” the company said.
As for analysts, they expect a full-year revenue rise of 0.43% in the motorcycle segment for Harley-Davidson, according to LSEG data. The company’s sales from motorcycles and related products fell about 14% to USD 792 million in the quarter, missing analysts’ expectations of USD 880.2 million. Profit of 18 cents per share came in much above analysts estimates of 4 cents.
Harley-Davidson’s rival Polaris, which reported results last month, also forecast 2024 sales decline attributing it to a “difficult retail environment”.
