Harley-Davidson Inc. The U.S. motorcycle manufacturer reported better-than-expected quarterly earnings on Wednesday as it began selling high-margin tours and cruise bikes under a new turnaround plan.
Harley, in an effort to increase sales beyond its baby boomer market, in February unveiled a plan to increase profits by focusing on large bikes, eliminating slow-selling models and moving away from dealers and markets that lose money.
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Although the company’s performance in the last quarter was overstated by a good statistical base, last year most U.S. dealerships suffered from Pandemic-related blockades, which showed signs of a growing strategy by CEO Jochen Zeitz.
For example, unit sales of its bicycles in the United States – Harley’s largest market – were higher than in the second quarter of 2019.
Also, the motorcycle manufacturer has been able to increase sales despite spending less on marketing and promotions.
“When we were running the Hardwire Strategy we started to see initial evidence points,” Zeitz said in a note.
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The company revised its operating revenue from motorcycle sales to 6-8% in 2021 from an estimated 7-9% in 2021, citing higher rates for bicycles on European bicycles, its second largest market.
However, it predicted an increase in operating profits for the financial services segment.
According to the adjustment, Harley earned $ 1.41 per share per quarter, beating analysts by an average of $ 1.17 per share, according to data from Refinitiv’s IBES.
Revenues from motorcycles and related products nearly doubled to $ 1.33 trillion. The company said its shipments doubled to 56,700 units in the second quarter.
This story was published without a change in text from a wireless agency feed.