Harley Davidson Sees 20 % Drop in U.S. Sales

As I’ve written before, I like to follow sales of Harley’s and RVs because I think they give insight into discretionary consumer spending (see the wonderful New York Times article “The Muted Roars of Hogs and R.V.s,” Sept. 30, 2007).

Harley-Davidson (HOG) reported its fourth quarter numbers before the open on Friday, and again, they were notably weak. Sales of Harley’s in the U.S. were down 20% from the comparable quarter last year.

This resulted in an 8% decrease in revenue, and a 26% decrease in net income (HOG 4Q Earnings Release).

Harley’s shares got hit again Friday and were down 50% from their November 2005 peak. I’d guess the pain for Harley shareholders is almost over (HOG 2-Year Chart)(pdf).

Disclosure: Top Gun has no position in Harley (HOG) shares.