(Bloomberg) -- Harley-Davidson Inc.’s second-quarter revenue exceeded analysts’ estimates on higher shipments and better sales of pricier motorcycles in North America. It also announced a $1 billion share buyback.
The Milwaukee-based company has offered deals to clear out older inventory and streamline its dealer network while focusing on pricier, more profitable so-called touring bike models.
Retail motorcycle sales fell 1% in North America, Harley’s core market, but touring and specialty bike shipments rose, the company said Thursday in a securities filing. Worldwide retail sales slipped 3%, dragged down by a 16% slide in the Asia Pacific region — mostly from China.
Harley shares rose 7.3% — the biggest gain in nearly five months — to $36.34 as of 10:10 a.m. in New York.
Chief Executive Officer Jochen Zeitz told analysts on a conference call that his company’s premium touring bikes are being well received in the market and that newer models will continue that positive momentum.
“There’s more innovation coming over the next few years so we feel quite good about the pipeline we have in place,” Zeitz said, adding he’s comfortable with an average buyer age of 45 years old in North America.
Revenue in the three-month period came to $1.62 billion, above the $1.58 billion average estimate of analysts surveyed by Bloomberg. Earnings per share came to $1.63, surpassing analyst estimates for $1.40 a share.
Its LiveWire electric bike unit posted a second-quarter loss of $28.2 million on sales of 158 motorcycles.
For the full year, however, Harley cut guidance. The company now sees its main unit’s motorcycle and related products revenue down 5% to 9% in 2024 and operating income margin of 10.6% to 11.6%. It had previously forecast “flat to down 9%” revenue and an operating income margin of 12.6% to 13.6%.
Chief Financial Officer Jonathan Root said production cuts in the back half of the year will be more aggressive than the company had initially anticipated.
“It has become clearer that volume will be toward the lower end of our original expectations,” he said on the call.
The bike maker said separately that its new plan to repurchase common stock would extend through 2026.
(Updates with CEO comments from fifth paragraph.)
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