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Harley-Davidson's ( HOG ) revenue rose only 1% year-over-year in 2016, mostly hurt by a 1.6% decline in motorcycle shipments during the year. The decline in the U.S. was mostly behind the weaker-than-expected results for the iconic manufacturer, as the home market forms roughly two-thirds of the net shipments for the company. Total shipments for Harley have a strong correlation with its U.S. shipments. Harley's retail sales declined 1.6% year-over-year in 2016, despite a 2.3% growth in international sales, due to a 3.9% decline in U.S. retail sales.
To grow its business more, Harley is looking for growth in international markets, and by increasing its reach to the outreach segment (young adults (aged 18 to 34), women, African-Americans, and Hispanics). Harley is also looking to extract the growth opportunity in the used-bike segment, with which the company is reaching new and returning customers.
Have more questions on Harley-Davidson? See the links below.
- Harley-Davidson Wraps Up A Slow 2016 With Weaker-Than-Expected Financials
- Reliance On The Slow Domestic Market Is Weighing Down Harley-Davidson's Performance
- Harley-Davidson Reports Q3 Results In Line With Estimates; Plans For Reorganization
- International Sales-Lift Could Offset Harley's Anticipated Drop In Domestic Sales In Q3
- Harley-Davidson Earnings Review: Market Share Gain In The U.S. Overshadows Retail Sales Decline
- What's Harley-Davidson's Fundamental Value Based On Expected 2017 Results?
- By What Percentage Have Harley-Davidson's Revenues And Gross Profit Grown Over The Last Five Years?
- How Has Harley-Davidson's Revenue And Gross Profit Composition Changed Over 2012-2016E?
- What Will Be The Impact On Harley-Davidson's Valuation If Motorcycle Sales In The US Decline?
- What Will Be The Impact On Harley-Davidson's Valuation If Motorcycle Sales In The US Accelerate?
Notes:
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2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Harley-Davidson
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
