Any hopes of the US motorcycle market making gains in 2017 appear to be going out the window, as Harley-Davidson reports that its Q2 2017 sales are down a whopping 9.3% – prompting the Bar & Shield brand to readjust its delivery numbers to dealers in the United States.
Sales worldwide were equally bleak for the American company, with international figures down 2.3% for the same time period. This means Harley-Davidson’s combined worldwide sales numbers are down 6.7% for Q2 2017.
As a result, Harley-Davidson CEO Matt Levatich said that Harley-Davidson would see a reduction in its workforce, though he would not offer specifics on what that could look like for its mostly union workforce.
Upon the release of quarterly sales information, Harley-Davidson stock dropped by over 10%, and it sits 8% below its opening price at the time of this writing.
Harley-Davidson sales are down in virtually every market, with only Latin American gaining over last year’s six-month figures. Citing a weakening global market, Harley-Davidson now expects to ship between 241,000 and 246,000 motorcycles to dealers in 2017.
On the financial side of things, Harley-Davidson has taken a hit both on revenue and net income. Harley-Davidson made $258.9 million in Q2 2017, down 8.3% from the $280.4 million it made in Q2 2016. Similarly, revenue fell by 5%, from $1.86 billion to $1.77 billion.
With this doom and gloom surround the iconic American motorcycle brand, one has to wonder how serious the rumors are of Harley-Davidson’s supposed purchase of Ducati Motor Holding. We remain unconvinced.