Harley-Davidson has announced its third-quarter numbers, and sales have slipped below last year’s numbers for the same time period.
Motorcycle sales were down 4.5 per cent worldwide for the MoCo in 2016’s Q3, and in the US, they were down 7.1 per cent over the same time period. That’s a tough blow for the manufacturer that traditionally holds the top spot in big bike sales in America.
Financial numbers were down a bit for Harley-Davidson as well; its third-quarter profit was $114.07 million, down from $140.35 million. While that’s a slide, it’s worth noting that it’s still a profit — Harley-Davidson is still making money, and lots of it, and that number matches what the experts figured the company would bring in.
However, while the company is still making money, there’s no question there’s not as much of it as there used to be, and this trend is noticeable year after year.
Competition from Europe, and even from inside North America (thanks to Polaris), not to mention aging baby boomer customers, are all factors eating away at Harley-Davidson’s sales. It doesn’t help that chopper reality shows are dead, and Sons of Anarchy has ended its run too — there’s nothing like some product placement to get people interested in bikes. Maybe that new SOA spin-off can get things rolling for the MoCo again? As long as nobody makes us watch it, please and thanks …
Dear Rui –
“Not that I’d expect to find sound insights from Zac and company on here, but industry wide sales are slumping so much of this is to be expected.”
Industry wide sales aren’t slumping, they’re shifting. The emerging middle class in Asia and South America now has a lot more clout in what gets built (and sold).
In the Good Old Days, in the grand scheme of things, Canada got whatever somebody else (usually the You Ess of Eh) decided, now the choices will come from elsewhere.
Zac, Michael, Costa and the rest of the crew are doing a pretty good job keeping us up to date (IMO), so I refute your expectations and will continue to choose to ignore them.
TK, I don’t think Michael or Costa is part of the “CMG staff” that writes these articles, by the stereotypes raised and gloomy themes it has Zac written all over it. Which has always been fine, I couldn’t care less what he thinks of Harley. But if you’re gonna write a piece evaluating the performance of a company, make sure it’s sound or be prepared to be challenged on it.
I mean, for example, he suggests that declining Q3 sales are due to competition, where if he did his research he’d see that Harley has the exact same market share (in 602cc+) this past Q as in Q3 2015. And Harley has suggested that the industry is slumping in the US this year, which was confirmed by BMW already that’s seen US sales dive this year based on the last update I saw.
So we can talk facts and scale and economics 101 when evaluating a company or if you’d prefer we can dumb down our conversation and link poor Harley sales to the loss of motorcycle outlaw shows…
Also, you’re doing a lousy job in ignoring me.
There are no bad bikes, just different ones. I have to say, in terms of die-hardedness I always see Harleys first thing in the spring and last thing in the fall.
Okay, maybe that Buell single was truly bad, but not that many are.
Three good points! Though I just got back from my morning breakfast ride and 8 degrees seems to feel colder every year!
All I know is that the model up there at the top of the page is the first one to really whet my appetite in as long as I can remember. Would I ever buy one? Not sure. I sure do park my butt on a few at the bike shows.
I’m with you on that. Put on a tank and seat combo from Storz, or get a tank maker to make an XLCR tank, seat and 1/4 fairing and I’m in.
Harley is all about fashion, nostalgia, image and style which all appeal principally to one generation, unless that company can find a way to maintain that level of attraction in the next generations they will slowly decline. Personally I wouldn’t touch their stock with a 10 foot pole. However long it takes fashions go out of style, that’s inevitable and so far Harley has shown zero capability to develop new markets, worse their own costumer base would actually consider it some kind of treason to do so! It seems like their advantage is becoming a trap. They have made so much money that should have acted long ago, now they have only themselves to blame for their complacency.
I for one will not complain about Harley’s decline, their outrageous dominance of the North-American market had deprived us for too long of the variety Europeans have been enjoying for many years.
Another negative point is technological advances, electrical bikes are coming, fast, and that also could be a huge problem for a company that sells nostalgia and tradition.
Harley won’t disappear (thank god) but its better days are likely behind it. And I think that’s great news.
Kinda a narrow minded view IMO…where to begin….it’s not just for old guys, they hold the top market share for the 18-34 market for large bikes. Their stock actually jumped this week 9% with their announcements (I’ve almost doubled my initial buy price), so your comments on stock price…
Not that I’d expect to find sound insights from Zac and company on here, but industry wide sales are slumping so much of this is to be expected.
The “we’re all going electric argument” applies to everyone – Lutz says the whole auto industry has another 20 years in it (considering self driving cars) so I actually think motorcycling, even if they’re electric, will see a resurgence in the future, IMO. And the fact that they have’t come to market with electric is smart – the tech is still not there. Victory has 2 Brammos at Americade this year for demo rides and one and sometimes both was always on the charger. Kinda embarrassing if you ask me.
For decades now I think, I’ve been watching the pitchforks and torches crowd come for Harley yet they’re still pushing out over a quarter of a million bikes, expensive bikes, year after year. What Ducati or Triumph or BMW wouldn’t give to get close to those numbers. It’s all fascinating to watch actually.
Your words … so cutting. Despite the fact you complain every time we write about the MoCo, you keep coming back, so we must be doing something right.
BTW — the H-D stock gain came after they announced they were laying off five per cent of their salaried workers.
‘Cause you’re all so entertaining!
Debating stock gains and losses can get even sillier than the usual debates on here, but they’ve exceeded revenue projections 3 quarters in a row, which always makes investors happy. But the stock actually has really gained since this summer as there are rumors of a private equity buyout, which I think would be great for the MoCo. As such, right now the share price is overvalued.
Not sure, I think your views are short sighted, on stocks for example you’re looking at a week when the stock costs basically the same it did in 1995! It’s cheap too which means the market is not that confident.
The US economy is growing, motorcycles sales in general are growing but Harley’s sales are declining.
It’s pretty hard to put lipstick on that hog (…)
Not saying they will disappear, they are such a strong brand, but they will have to share the market with others. Nothing wrong with that I think.
“I think your views are short sighted, on stocks for example you’re looking at a week when the stock costs basically the same it did in 1995!” – Actually the stock price in 1995 split a few times prior and after.
A decade ago motorcycle sales in the US was over a million/yr, and it’s running under half of that last time i checked, so it’s far from returning to prominence especially with the large displacement category. But they have lost some share to Indian, which was to be expected, but that trend (like Victory before it) will likely flatten out. .
I disagree.
I think its days of market dominance may be behind it, but I do think the MoCo’s better days could still be ahead, with careful guidance. Their products may not be as ubiquitous, but they have steadily improved reliability, and if they can master the electric platform, great times could be ahead.
I don’t know Zac…
The goal of a company is to have your product appeal to as many customers as possible. In the case of motorcycles (in North America) they’re trying to appeal to a very small segment of the population in general. Within that segment, different players/bikes target different niches (such as CCM’s adventure 450).
Harley Davidson is different. They are a renown BRAND and that’s what they’re selling. It just so happens that the ultimate expression of that brand are motorcycles.
I would bet that the vast majority of HD buyers wouldn’t consider buying anything else, we’ve all experienced it when chatting with them. They’re Harley riders, not motorcycle enthusiasts (YES, I KNOW, I’m not talking about RUI or BBB and many others).
Nobody asks for a cola, they ask for a Coke or a Pepsi. Harley is a brand on that same level. Their customers are drawn from a far larger market than Honda, Yamaha, KTM, BMW etc. which is really their strength.
Come to think about it, that’s what Honda was trying to achieve with the, “You meet the nicest people on a Honda” campaign many years ago. I wonder where they would have been if they had continued with that.
I dunno about that. It’s hard to get a realistic “potato-potato” noise out of an electric bike, no matter what aftermarket exhaust you fit.
And as any Hardley-Ableson driver will tell you, without loud pipes WE’RE ALL GONNA DIE!!!!!!!!!!!!
Not poking fun here but perhaps it was a bit of a Freudian slip when you say, “Costumer base” rather than customer base. Considering that it appears that more than half of Harley showrooms are devoted to approved T-shirts, belt buckles, piggybanks, beanie helmets, jackets and such, they really do resemble a costume shop more than a motorcycle dealership.
My fav dealership was the old McBride, I bought 5 bikes there over time and loved it. But while their 1st floor was all bikes and parts and tires, the whole equally sized 2nd floor was all stuff! Nothing wrong with that!
People need to buy more Real Bikes lol