Harley-Davidson Inc., an American motorcycle manufacturer, announced a 24% drop in earnings for the third quarter that ended September 30.
Harley-Davidson, a luxury motorcycle manufacturer, is well-known for its astute marketing. Harley-Davidson has remained legendary throughout the years, and its marketing methods have played a significant part in its success.
Harley-Davidson has always been a high-end motorcycle manufacturer, and they have never disputed it. The firm specializes in heavy components and engines that are high, powerful, and robust. People purchase motorcycles despite their expensive price because of their better quality and status symbol.
Harley-Davidson has always maintained a certain degree of product quality and has always established standards in this area. All of its models have distinguishing traits. Harley-Davidson has always sought for heavily constructed motorcycles with a powerful engine and a thunderous pounding sound. This is the core of their product that draws customers in.
Another distinguishing characteristic is their designs and customization, which are offered to customers based on their requirements and preferences. All of these designs are robust, powerful, and, most importantly, exclusive to Harley-Davidson.
The corporation ascribed the earnings reduction to lower discretionary expenditure as a result of rising borrowing rates and inflationary pressures.
Its net profit plummeted from $261.2 million to $198.6 million, or $1.38 per share, a year earlier.
Harley-Davidson said it has maintained profit growth via its affluent customer base, but it hasn’t been as effective in wooing younger riders with the introduction of Sportster S models and electric motorcycles that cost almost half the price of its famous Cruiser, Trike, and long-distance Touring models.
In the September quarter, its sales of motorcycles and associated items fell by roughly 9% to $1.30 billion.
Due to the production stop announced in the late second quarter, worldwide motorcycle shipments plummeted 20% during the third quarter, according to the firm.
CVO retail sales increased by 25% as a result of the successful introduction of two new CVO bikes, according to Harley.
“Against a challenging macro and consumer backdrop, we have been able to achieve a result that preserves profitability at an industry-leading level. In addition, we successfully launched our pinnacle CVO motorcycles, with CVO retail sales up 25%,” said Jochen Zeitz, chairman, president, and CEO, of Harley-Davidson in a statement.
“Harley-Davidson remains committed to its Hardwire strategy with a focus on both desirability and profitability, and we will do everything possible to achieve our goals while being realistic that current market conditions are complex. We are gearing up for ’24 and will ensure that we are fully aligned and ready as we close out the year with Q4,” Zeitz also said.