Motorcycles Why Harley-Davidson Is Plunging 18% Today
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.
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.
After the motorcycle maker's third-quarter report held out hope the company's reworked turnaround plan called The Hardwire might be, 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
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.
It blamed the downturn on softness in the motorcycle market, which more than offset the profits generated by its financial services division.
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 makerin 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 showedfor its Indian Motorcycle brand, investors shouldn't expect Harley to come roaring back.
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.
SPONSORED: has no position in any of the stocks mentioned. The Motley Fool owns shares of Polaris Industries. The Motley Fool has a .
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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.