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Harley-Davidson cuts outlook on weak U.S. sales, -4.2% premarket

  • Harley-Davidson (NYSE:HOG) -4.2% premarket after cutting its FY 2014 shipment guidance, citing Q2 sales that suffered from prolonged poor weather across parts of the U.S. and soft demand for its low-priced Sportster motorcycles.
  • HOG now sees shipments of 270K-275K motorcycles to dealers and distributors worldwide in 2014, a 3.5%-5.5% Y/Y increase but down from previous guidance of 279K-284K and a 7%-9% increase.
  • The new bikes, which analysts say were supposed to begin appearing in dealer showrooms in May, did not begin to arrive until late June, but HOG did not explain why the bike was delayed.
  • Otherwise, Q2 earnings were better than expected; HOG says it shipped 92,217 motorcycles to its worldwide network during Q2, a 9% Y/Y increase, and expects to ship 49K-54K bikes in Q3 vs. 54,025 in the year-ago quarter.
  • HOG's Q2 difficulties did not appear to affect rival motorcycle maker Polaris Industries (NYSE:PII), which also reported higher earnings but raised its full-year forecast.
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Comments (1)
  • Dustin H45
    , contributor
    Comment (1) | Send Message
     
    Years ago, former COO Rich Teerlink commented on the steps that brought H(hyphen)D back from the brink. In addition to product and marketing, Teerlink had this to say about Harley Owners Group (NYSE:HOG); "Perhaps the most significant program was—and continues to be—the Harley Owners Group (HOG), created in 1983. Begun as a way to communicate more effectively with the company’s end users, HOG quickly grew into the world’s largest motorcycle club. And dealers regained confidence that Harley could and would be a dependable partner."

     

    As a former general manager for a mid-size Harley dealership, I attended many Harley Owners Group functions over the years. One could always count on seeing two or more well-known factory executives at these functions... pressing flesh and answering questions. That all changed under Wandell's leadership. From what I understand, the only factory face at those meetings now is a video-taped greeting from the current COO. If that is any indication of the importance HD now places on it's most loyal customers.... Well, you figure it out.
    28 Jul 2014, 04:46 PM Reply Like
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