The second quarter sales results for Harley-Davidson are in, and once again the American brand is seen floundering with its sales, not only in the United States, but also abroad.
For Q2 2020, Harley- Davidson sees its American sales dropping by 27% compared to Q2 2019 – the same can be said of Harley-Davidson’s worldwide sales for the same time period, which fell by the same percentage.
Added to the already lackluster results from the first quarter of the year, Harley-Davidson sales have sunk 22% for the first-half of the year, with worldwide sales diving 23% so far this year, compared to last.
On the financial side of things, the drowning figures are comparable, with Harley-Davidson disclosing a 47% drop in revenue in Q2 ($865 million), and a 28% drop for the year ($2.16 billion).
With the organizational changes underfoot, this has meant a $92 million loss (-147%) in Q2 net income, which means a $23 million loss (-28%) in net income for the first six months of the year.
Inferring from the Q2 results shown today, it would seem that Harley-Davidson has not seen the same post-lockdown sales boosts that other brands have been reporting (and hyping), though the company’s overall sales progress for the year is closer to what the US and global markets have shown so far.
“I’m very pleased with our accomplishments in these times of extraordinary challenges and uncertainty. Through all of this, we have made significant progress toward the goals of The Rewire; the positive feedback from key stakeholders and the early impacts we are seeing in the marketplace are very encouraging,” said Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson.
“A total rewire is necessary to make Harley-Davidson a high-performance company. Building on our strong brand legacy, we are reinvigorating our core profit driving business – powered by our strongest dealers, most exciting products and careful inventory management, while focusing on the most important opportunities for future expansion.”
“We’re overhauling our operating model and our product plan and are rewiring our market structure and organization to focus on the strengths of our brand and company. We are now working on our new 5-year strategic plan, The Hardwire, which will be grounded in enhancing the desirability of our brand and protecting the value of our iconic products.”
Harley-Davidson Sales for Q2 and the First-Half of 2020:
|Motorcycle Sales (thousands)||2nd Quarter 2020||First 6 Months of 2020|
Motorcycles and Related Products Segment Results:
|$ in millions||2nd Quarter 2020||First 6 Months of 2020|
|Motorcycle Shipments (thousands)||28.4||68.8||(59)%||81.3||127.6||(36)%|
|Parts & Accessories Revenue||$169||$221||(24)%||$303||$381||(20)%|
|General Merchandise Revenue||$38||$65||(42)%||$87||$120||(28)%|
|Gross Margin||16.1%||31.7%||(15.6) pts.||24.1%||30.5%||(6.4) pts.|
|Operating (Loss) Income||($121)||$181||(167)%||($36)||$289||(113)%|
|Operating Margin||-18.1%||12.6%||(30.7) pts.||-2.1%||11.0%||(13.1) pts|