American Motorcycle Dealer AMD 239 June 2019

NOW IN OUR ™ 27 EA th R Y T H E L E A D I N G B U S I N E S S M A G A Z I N E F O R T H E I N T E R N AT I O N A L C U S T O M M O T O R C Y C L E A N D PA RT S I N D U S T RY Harley Pimps Modest Domestic Market Share Increase in Response to a Down First Quarter arley-Davidson is adamant that its 1Q 2019 performance was "better than expected," stating that "company actions resulted in earnings per share and retail sales finishing stronger than expected during the [first] quarter" and that "the company's 'More Roads to Harley-Davidson' accelerated plan for growth continued to progress and deliver results." In a quarter that saw them announce the acquisition of kids E-bike maker 'StaCyc', add a President for the Harley-Davidson brand to the senior management team, and "broaden reach" with the $19k Electra Glide Standard, the company kept shareholders placated with diluted EPS of $0.80 per share that was "ahead of company expectations" (cash dividend for the quarter is up to $0.375 from $0.37 in the year-ago quarter - a +1.4% dividend increase), the repurchase of $52.6 million of shares and with domestic U.S. retail H motorcycle sales "only" down by - 4.16% (38,797 units) in a 601cc+ domestic U.S. market that was down by -4.74% (for a modestly increased 51.1% market share). Harley-Davidson worldwide retail sales decreased -3.8%; international retail sales were down -3.3%. The drop in domestic U.S. retail sales was said to be "driven by continued weak agility and discipline industry sales." Matt Levatich, President and Chief Executive Officer, Harley-Davidson, Inc said that "we are acting with agility and discipline to take full advantage of rapidly evolving global markets. Harley-Davidson's U.S. market share growth and retail sales performance in the first quarter are further evidence of the effects we are having as we continue to implement and dial-in our More Roads efforts. "In the short eight months since we announced our More Roads plan, we continue to accelerate our progress to build the next generation of Harley- Davidson riders," said Levatich. "During the first quarter we intensified our march by investing in our future and adding capabilities that we're confident will inspire riders today and for generations to come." The company says that it "increased its reach and impact in the first quarter" and that 278,000 "new riders" joined Harley-Davidson in 2018 in the U.S. "This group is the most diverse across age, ethnicity and gender in all of the years Harley-Davidson has tracked this data, expanded access to new customers in part with the launch of the new Electra Glide Standard, increased marketing support, reaching more consumers sooner and driving action such as increased traffic to, brand awareness, trial and sales," with media spend up by nearly +90%. Continues on page 6 >>> Gallery Motorcycles won Best in Show at the 33rd Biker Fest at Lignano Sabbiadoro, Udine, Italy, with 'Deeva', based around a 1920 Harley-Davidson JD engine, custom frame and glass oil tank - pages 32-33 JUNE 2019 ISSUE #239 MIKE KENNEDY PRESIDENT 8% OF U.S. HOUSEHOLDS