JUNE 2023
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THE LEADING BUSINESS MAGAZINE FOR THE INTERNATIONAL CUSTOM MOTORCYCLE AND PARTS INDUSTRY
Harley Q1 North America Retail Unit Sales -17 %, with Global down by -12 %; Revenue up by + 20 %
JUNE 2023
ISSUE # 287
In an effort to put a positive spin on what has to be viewed as disappointing first quarter results , Chairman , CEO and President Jochen Zeitz is quoted as saying : " Harley- Davidson delivered a solid start to the year , with consolidated first quarter revenue up 20 %, driven by HDMC , reflecting the progress we continue to make in advancing our Hardwire strategic plan . " Building on our commitment to innovate in our core categories , we have kicked-off a new era of CVO touring bikes , with the all-new 2023 CVO Street Glide and CVO Road Glide ," stating that the new Variable Valve Train models were a " landmark for the company and our customers ." However , Wall Street is not known for its ability to appreciate nuance . On the day the fiscals were released ( April 27 , 2023 ), Harley stock opened at $ 38.13 and dropped as low as $ 33.80 before closing at around $ 36.00 . For context , the year-ago Harley stock price was $ 36.32 , and since then it had been as low as $ 29.81 , with a 12-month high of $ 51.72 in early February 2023 . Harley says the 21 % increase in HDMC revenue also included a 1 % pricingdriven increase in Parts & Accessories revenue , with Apparel revenue up 39 % " behind sales of 120th
The CVO Road Glide - part of a " new era of CVO Touring bikes "
anniversary merchandise and product mix ." " First quarter gross margin was up 4.2 points behind pricing , shipment mix , and cost productivity more than offsetting the negative impacts from foreign currency and cost inflation .
First quarter operating income margin improved by 4.6 points largely for the same reasons ." Harley-Davidson cites " timing of new product launches , as well as the shifting macro conditions " as driving the 12 % year-on-year decline in achieved global retail motorcycle sales ( though that excludes the 63 LiveWire units sold !) and the 17 % decline seen in North America . Growth in Asia Pacific " was driven by continued strong demand across key markets , including Japan and Australia . EMEA decline of 6 % was primarily driven by market exits , in addition to a planned unit mix shift towards the profitable core product segments , following the sunsetting of Sportster . Latin America continued to be adversely impacted by regional economic conditions ." HDFS ' operating income decline of $ 28m in the first quarter , or down 32 %, was driven by higher interest expense and higher credit losses . " The
Continues on page 8 >>>
Fast Johnnie Glide ST
There has been a flurry of Harley new model announcements in recent weeks . From an all-new CVO Road Glide and Street Glide to a new limited edition ICONS Collection FLHFB Electra Glide ' Highway King ' and , seen here , three new limited edition Enthusiast Collection ' Fast Johnnie ' ST models - see pages 31-32 ...
EBR AT BARBER