Harley-Davidson has released its financial results for the 1st quarter of 2018 – and there’s some good news in there after a bleak 2017.
The headline figures include a revenue increase of 2.7% compared to the same period last year, with growing international sales. However, the uplift in sales outside America was a mere 0.2%, and the US retail sales for the same period were down by 12%. Every silver lining has a cloud…
Harley boss Matt Levatich looked on the bright side, saying: “We are pleased to deliver revenue growth on the heels of our recent product investments in Softail and Touring. This, plus solid financial services segment performance and strong cash returns during the first quarter underscore our commitment to drive shareholder value. Our international markets returned to retail sales growth supporting our long-term objective to increase international sales to build the next generation of riders globally.”
To be fair, the international growth – small though it is – is important. Harley has been obsessed with its core US market for a long time, and while it’s a strategy that paid off for several years, it’s increasingly clear that the firm needs to expand its horizons.
Harley says its objectives for the decade up to 2027 are to gain two million extra riders in the USA, but also to increase international business to account for 50% of the firm’s annual production.
To gain those international sales, Harley says it’s expanding in new directions. And with a plan to launch 100 new models during its 10-year plan it’s going to have to; there are only so many ways that the traditional V-twin formula can be reshuffled.
Levatich said: “Our view of the highly competitive global motorcycle market is grounded in a realistic assessment of risks, opportunities and capabilities needed to inspire ridership and grow our business. Our data-driven insights compel us to enhance and accelerate our strategies to ensure we deliver on our long-term objectives as we build the next generation of Harley-Davidson riders.”
Remember, the first production electric Harley is set to debut in 2019, developed with the help of Alta Motors. That’s a move that could see it leapfrog its mainstream rivals in a field that’s surely set to explode in popularity over the next few years.
