The second quarter financial numbers are in for Harley-Davidson and Polaris, and once again, they’re a bummer.
In Q2, Harley-Davidson saw an 8 per cent drop in US sales when compared to 2018’s Q2 sales. International sales dropped 8.9 per cent in Q2 when compared to 2018 numbers.
We haven’t seen an exact figure for Polaris sales, but its subsidiary Indian is supposed to have seen a similar drop. Both manufacturers are still making money, but not as much as they used to.
There are many reasons for the slide, including an overall drop in the US market. Big bike sales have been declining for some time in the US, and most manufacturers aren’t seeing growth, just the opposite.
However, Harley-Davidson and Indian have both been hit particularly hard by ongoing trade disruptions with Europe, as the EU has set tariffs on made-in-America motorcycles as part of a squabble with President Trump.
Both Harley-Davidson and Indian are now looking at overseas production as part of the solution to this problem, and Harley-Davidson is also in the middle of a big push to create more new riders at home, as well, with the press release pointing out that Harley-Davidson saw slight growth in sales to the 18-34 age segment, at least.
The current crop of well healed middle age riders grew up during the age of the lightweight two stroke dirt bike (as opposed to the preceding easy Rider crowd).
They want some off road capability. Big vtwin cruisers are highway use only.Thus the success of triumph tiger, Africa twin and various beemers.
HD late to the party with a cartoonish adv doomed to failure.
This just in from Polaris/Indian –
Motorcycles segment sales, including PG&A, totaled $197 million, up 15 percent compared to the second quarter of 2018, driven by strength in Indian sales, particularly the new FTR1200 motorcycle which began shipping globally in the second quarter, offset by declines in Slingshot sales. Gross profit for the second quarter of 2019 was $27 million compared to $25 million in the second quarter of 2018. The increase in gross profit was primarily the result of higher volume mostly offset by increased tariff costs.
North American consumer retail sales for the Polaris Indian motorcycles decreased high-single digits percent during the second quarter of 2019 in a weak mid- to heavy-weight two-wheel motorcycle industry that was down low double digits percent. Indian outperformed the market with modest market share gains in North American during the quarter driven by retail sales of our new mid-size bike, the race inspired FTR1200, which has experienced strong initial demand both in North America and Internationally.
North American consumer retail sales for Polaris’ motorcycle segment, including both Indian Motorcycles and Slingshot, decreased mid-teens percent during the second quarter of 2019, while the North American Motorcycle industry retail sales for mid to heavy-weight motorcycles including three-wheel vehicles, was down mid-single digits percent in the second quarter of 2019.