Harley-Davidson Q2 2017 Report: Sales Down 6.7%

Harley-Davidson Q2 2017 Report: Sales Down 6.7%

Harley-Davidson Q2 2017 Sales

Attributing “challenging marketing conditions,” Harley-Davidson says second-quarter motorcycle sales for 2017 were down 6.9% compared to the same period in 2016. Through six months, worldwide retail motorcycle sales were down 5.7 percent from the same period in 2016.

Due to market conditions, and a Q2 net income of $258.9 million versus $280.4 million in Q2 of 2016, Harley has lowered its expectations on shipping for 2017.

Harley-Davidson Q2 2017 Report: Sales Down 6.7%“Given U.S. industry challenges in the second quarter and the importance of the supply and demand balance for our premium brand, we are lowering our full-year shipment and margin guidance,” says Matt Levatich, president and CEO, Harley-Davidson.

In the U.S. alone, which Harley says is especially challenging, Q2 sales were down 9.3% compared to Q2 2016. The Motor Company says its U.S. market share in Q2 was 48.5 percent in the 601cc-plus segment.

International retail sales were down 2.3 percent compared to the second quarter in 2016.

“Our long-term strategy, focused on building the next generation of Harley-Davidson riders, is our true north. Our new product investment is one pillar of our long-term strategy to build riders globally and we are energized by the strength of our model year 2018 motorcycles coming later this summer,” says Levatich.

Harley announced a bold initiative shortly after Harley-Davidson reported its first quarter financial results. Harley reported it sold 55,049 motorcycles in Q1 2017, down 4.2% from Q1 2016.

As part of the report, Harley-Davidson also announced its 10-year growth strategy, which focuses on five objectives:

  • Build two million new Harley-Davidson riders in the U.S.
  • Grow international business to 50 percent of annual volume
  • Launch 100 new, high-impact motorcycles, which begin with the new Street Rod and Road King Special
  • Deliver superior return on invested capital for Harley-Davidson Motor Company (S&P 500 top 25%)
  • Grow the business without growing its environmental impact