Harley-Davidson on Thursday forecast full-year income for its bike phase to be flat to down 9% from a 12 months earlier, as greater borrowing prices and sticky inflation strain demand for its iconic autos in North America.
Shares of the Milwaukee-based firm have been down practically 2% in premarket buying and selling.
The 120-year-old bike maker has targeted on promoting fewer bikes at greater costs to spice up margins, nevertheless it wasn’t sufficient to offset a decline in bike shipments.
The corporate’s world bike shipments fell 13% within the fourth quarter, in comparison with a 12 months earlier as a result of sellers sustaining decrease stock amid sluggish demand.
Harley-Davidson’s retail gross sales globally have been additionally down 11%, led by a 9% fall in North America.
“North American retail efficiency continues to be adversely impacted by greater rates of interest, financial uncertainty, and decrease gross sales of non-core bikes,” the corporate mentioned.
Harley-Davidson’s gross sales from bikes and associated merchandise fell about 14% to $792 million within the quarter, lacking analysts’ expectations of $880.2 million, in accordance with LSEG information.
The corporate’s revenue of 18 cents per share got here in a lot above analysts estimates of 4 cents. (Reporting by Kannaki Deka in Bengaluru; Modifying by Shounak Dasgupta and Maju Samuel)
