Harley’s renewed give attention to touring bikes drives upbeat forecast By Reuters
© Reuters. FILE PHOTO: Harley Davidson bikes are displayed on the market at a showroom in London
(Reuters) -U.S. bike maker Harley-Davidson (NYSE:) on Monday reported a better-than-expected quarterly revenue and raised its full-year forecast for gross sales progress, as its give attention to larger and worthwhile touring bikes increase demand, sending its shares up greater than 8%.
Because the center of final yr, the Milwaukee, Wisconsin-based firm, which has struggled to develop gross sales for the previous a number of years, shifted its focus to huge bikes, conventional markets comparable to america and Europe, and older and wealthier clients.
In February, the bike maker unveiled a brand new turnaround plan that targets low double-digit earnings progress by way of 2025.
The corporate stated its retail gross sales, a measure of demand at its dealerships, surged 30% to 32,800 bikes in North America in its first quarter.
Retail gross sales in Europe, Harley’s second largest market exterior america, slumped 36% to 4,900 bikes, as a result of firm’s determination to cease promoting its smaller and fewer worthwhile Avenue or Sportster bikes and delivery delays because of the COVID-19 pandemic.
The corporate stated decrease gross sales incentives and a reduce in its promoting, normal and administrative expense lifted its bike enterprise working margin by over 10 factors to 18.5%.
It now expects bikes enterprise income to develop within the vary of 30% to 35% in 2021, up from its prior estimate of between 20% and 25%.
Harley’s internet earnings jumped over threefold to $259 million within the quarter ended March 28, from $70 million a yr earlier. On an adjusted foundation, the corporate earned $1.68 per share, beating analysts’ common estimate of 88 cents per share, based on IBES knowledge from Refinitiv.
The corporate’s income rose to $1.42 billion from about $1.30 billion. (https://
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