Harley-Davidson announced it’s Q2 2014 financials, indicating that Q2 net income was $354.2M on consolidated revenue of $2.00B, compared to net income of $271.7M in the year-ago period on consolidated revenue of $1.79B.
Dealers worldwide sold 90,218 new motorcycles compared to 90,193 motorcycles in the year-ago quarter. U.S. sales were flat/down as dealers sold 58,225 new Harley-Davidson motorcycles in the quarter, compared to sales of 58,241 motorcycles in the year-ago period.
Some interesting nuances from the analyst call:
- Market share was down 2.6% on a year-over-year basis at 50.3%.
- Management confirmed the Road Glide is coming back with the new 2015 product launch in August.
- In the U.S. the Road Glide accounted for 10% of sales
- There were self-inflicted wounds with the intro of the Street on Sportster sales which was down double-digit and compounded by lack of Street inventory.
- Management stated Indian touring bikes have had little impact on Rushmore bikes which in the first half were up double-digits. But, read this HERE which colors the picture a bit different.
- The Street start-up issues are supply chain in nature and related to this being the first time H-D is manufacturing a product internationally.
- H-D now expects to ship between 270K and 275K motorcycles worldwide which represents growth of approximately 3.5% to 5.5% versus prior year.
Despite the soft Q2 sales, H-D believes the demand fundamentals for the business remain intact and underlying growth trends are strong. The industry has grown for three straight years coming into this year and there is more investment in the industry than Harley-Davidson management has seen in the last five years in terms of new products, marketing and advertising.
UPDATED: August 1, 2014 – Harley-Davidson officially reveals the 2015 Road Glide.
Photo courtesy of Edgar and H-D.
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