OCT 2023
NOW IN OUR
32nd ! YEAR
™
THE LEADING BUSINESS MAGAZINE FOR THE INTERNATIONAL CUSTOM MOTORCYCLE AND PARTS INDUSTRY
Harley Q2 Financial Results - " Retail Growth and a Strong Gross Margin Increase "
Reiterating that Harley ' s strategy remains " grounded in desirability and profitability ," Chairman , President and CEO Jochen Zeitz is quoted as saying that " Harley-Davidson showed continued progress in delivery of our Hardwire strategy this quarter , despite the macro-economic conditions affecting both the business and our customers . " Following the production suspension we experienced late in the quarter , impacting motorcycle shipments , we achieved retail growth for the quarter in addition to a strong increase in gross margin . " We are confident in our ability to navigate near-term headwinds and remain optimistic on the future , most notably following the successful launch of our game-changing CVOs and the highly attended gathering of our community during our anniversary year , reinforcing the enduring power of the brand ." The financial highlights for the second quarter and first half year to date were said to include HDMC gross margin of
34.8 %, an increase of 400 basis points , but against a decline in HDMC revenue of -4 %, behind a 10 % decrease in wholesale shipments related to the unplanned production suspension . HDFS revenue increased
+ 19 % on higher interest income and increased investment income . Global pricing is said to have partially offset unit declines . Parts & Accessories revenue was up + 1 % driven by improved digital efforts , while Apparel revenue was down -14 % compared to a strong Q2 period last year , as the bulk of seasonal product sales occurred in Q2 last year , compared to Q1 of this year .
Global retail motorcycle sales in the second quarter were up + 3 % versus the prior year . North America retail performance was up + 1 %, " driven by strength in our core categories such as Grand American Touring and Cruiser , but offset by declines in the Sport motorcycle segment , following the discontinuation of legacy Sportster models in North America at the end of 2022 ." Growth in APAC was driven by continued strong demand across key markets , including Japan , China and Australia . The decline in EMEA of -6 % was primarily driven by a market exit and the planned unit mix shift towards the profitable core product segments . Growth in Latin America was driven by modest growth in Brazil partially offset by weakness in Mexico . With its mostly successful 120th Anniversary events in Budapest and Milwaukee now under its belt , events which Harley says " reinforced overall brand strength " and the introduction
Continues on page 8 >>>
OCT 2023
ISSUE # 291
X-WEDGE
Glory in the Frank Lloyd Wright inspired design of Madison ' s downtown Monona Terrace exhibition center for one last time before the annual LeMans NVP Parts Expo relocates to Milwaukee in 2024 ... see pages 26-33 .