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HomeHarley DavidsonHarley-Davidson profit jumps amid boom in leisure spending, shares up 8%

Harley-Davidson profit jumps amid boom in leisure spending, shares up 8%

[1/3] A biker rides his Harley-Davidson during a parade at the “Hamburg Harley Days” in Hamburg, Germany, June 24, 2018. REUTERS/Fabian Bimmer
Feb 2 (Reuters) – Harley-Davidson Inc (HOG.N) reported higher-than-expected quarterly profit on Thursday as a boost in bike shipments, coupled with strong pricing, allowed the motorcycle maker to navigate cost inflation and deliver on pent-up demand.
Shares in the U.S. company rose 8.3%.
The manufacturer has either beaten or met Wall Street earnings forecasts for the previous seven quarters, benefiting from strong demand for leisure purchases despite high inflation dampening consumer confidence.
Harley-Davidson said it expects revenue from its motorcycle business to grow in 2023. The company rebounded from a production slowdown in May, which executives attributed to a parts issue from a third-party supplier. Showrooms that were at a deficit during the summer are starting to be replenished with new and used models.
“We ended the year in a healthier inventory position and are set up for a solid start to the riding season,” Gina Goetter, chief financial officer, told shareholders on a conference call.
Consumer interest in outdoor recreational activities has been a boon to the bike manufacturer, even as it faces challenges such as lingering supply chain shortages.
The Milwaukee-based company posted a 12% jump in fourth-quarter revenue to $918.63 million, topping expectations of $909.97 million in a Refinitiv survey of analysts.
A combination of price increases and surcharges for its popular cruisers, trike models, and longer-range Grand American Touring bikes padded the bike maker’s bottom line given high raw material and expedited-shipping costs.
Global motorcycle shipments rose to 34,000 from 28,900 a year ago.
Sales of the company’s motorcycles and related products rose 9% to $4.89 billion in 2022. The company expects revenue from that segment, its main business, to grow 4% to 7% in 2023.
The company’s net profit rose to $39.7 million, or $0.28 cents per share, in the quarter ended Dec. 31, outpacing forecasts of 6 cents per share.
Shares of Harley-Davidson have risen more than 30% in the past 12 months.
Reporting by Aishwarya Nair in Bengaluru and Bianca Flowers in Chicago; editing by Maju Samuel, Susan Fenton and Nick Zieminski
Our Standards: The Thomson Reuters Trust Principles.

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