Motorcycles Why Harley-Davidson Is Plunging 18% Today

21:46  02 february  2021
21:46  02 february  2021 Source:   fool.com

Harley-Davidson Plans to Leave India Because of Poor Sales

  Harley-Davidson Plans to Leave India Because of Poor Sales Harley-Davidson sees sales drop after an initial surge and its India operation suffers from executive turnover.Iconic motorcycle company Harley-Davidson reportedly plans to leave India, the world's largest market for two-wheelers, because on poor sales.

a man riding on the back of a motorcycle: Why Harley-Davidson Is Plunging 18% Today © Provided by The Motley Fool Why Harley-Davidson Is Plunging 18% Today

What happened

Shares of Harley-Davidson (NYSE: HOG) were tumbling 19% in midday trading Tuesday after the company reported fourth-quarter and full-year 2020 earnings that fell well short of expectations.

So what

After the motorcycle maker's third-quarter report held out hope the company's reworked turnaround plan called The Hardwire might be gaining traction, the latest numbers show Harley is still mired in the same quagmire it has been.

Where Wall Street anticipated Harley would post an adjusted profit of $0.21 per share, it actually came in with a big $0.44 per-share loss. Last year it posted a $0.20 per-share profit.

Harley-Davidson Hunkers Down as It Axes Factory-Backed Racing Teams

  Harley-Davidson Hunkers Down as It Axes Factory-Backed Racing Teams It's the end of a 100-year tradition at the motorcycle maker.While the motorcycle maker will continue to support riders through dealer-sponsored teams, it announced last week, there will no longer be a factory-backed team on the track.

a man riding a motorcycle down a street: Motorcycle rider on LiveWire electric motorcycle © Harley-Davidson Motorcycle rider on LiveWire electric motorcycle

It blamed the downturn on softness in the motorcycle market, which more than offset the profits generated by its financial services division.

Now what

Harley-Davidson sales are still in a tailspin. Motorcycle revenue plunged 51% in the quarter with U.S. sales down 15% year over year, and off 13% elsewhere in the world. Shipments fell 48% to under 21,000 units.

While the bike maker didn't mention the LiveWire in its other release, sales are included in its cruiser segment, and those bikes suffered the largest worldwide declines, down 54%. Touring and sportster bikes were down in the 40% range.

It indicates Harley-Davidson has a much longer road to recovery than analysts previously thought. Considering Polaris Industries recently reported its own results that showed sharp sales gains for its Indian Motorcycle brand, investors shouldn't expect Harley to come roaring back.

Top Long-distance Touring Motorcycles of 2020

  Top Long-distance Touring Motorcycles of 2020 The best true touring motorcycles, baggers, and light touring bikes of 2020True tourers are the bikes that make no sacrifices for styling; they’re utilitarian machines designed for covering long miles, and they’re the best at hitting that mark. Baggers are more traditionally styled bikes equipped with hard bags and fairings; these are also equipped for long miles, but with a larger consideration toward styling. And the light tourers here are unfaired motorcycles without hard saddlebags, but that can still handle serious long-mile use with some modifications.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of Polaris Industries. The Motley Fool has a disclosure policy.


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Harley-Davidson Sales Finally Hit Paydirt Again .
It's the motorcycle maker's best first-quarter performance in years.The gains follow a change in when the bike maker introduces its new models, from late summer to early in the calendar year, to coincide with when bike riders are most interested in buying, and suggests the "Rewire" roadmap CEO Jochen Zeitz has laid out for turning the company around is gaining traction.

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