What Factors Drove Harley-Davidson’s Revenues in 3Q15?



Harley Davidson’s revenues

Harley-Davidson (HOG) reported consolidated revenues of $1.3 billion in 3Q15—up 1.2% from the corresponding quarter last year. Harley-Davidson’s consolidated revenues include both its Motorcycles segment and its Financial Services segment. The Motorcycles segment’s revenues comprise motorcycle sales as well as sales of parts, accessories, and general merchandise.

Harley-Davidson’s revenues rose modestly in 3Q15. However, its revenues have fallen YoY (year-over-year) in three out of the last five quarters, as can be seen in the graph above.

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Motorcycles revenues fell

  • Revenues from motorcycle sales were $812 million in 3Q15—flat compared to the corresponding quarter last year.
  • Average motorcycle revenue per unit fell $899 in 3Q15 as compared to the corresponding quarter last year. Revenue per unit was negatively impacted by a stronger US dollar (UUP) and more sales of low-priced models. This was partially offset by higher pricing.
  • Sales of motorcycle parts and accessories generated revenues of $252.2 in 3Q15—up 5.2% YoY.
  • General merchandise sales generated revenues of $69 million in 3Q15, similar to the corresponding quarter last year.

Financial services

  • Financial services generated revenues of $177.1 million in the quarter. This represents a 3.5% YoY increase. Financial services accounted for 13.4% of Harley-Davidson’s 3Q15 revenues.
  • Harley Davidson has been growing its loan portfolio. Car manufacturers including Ford Motor Company (F), General Motors (GM), and Toyota Motor Corporation (TM) also have vehicle financing arms.

The outlook for Harley-Davidson’s 4Q15 revenues depends on its shipments and product pricing. In the next part of this series, we’ll explore what guidance the company has given for motorcycle shipments.


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