How Did HOG Perform in International Markets in 4Q16?


Nov. 20 2020, Updated 2:15 p.m. ET

HOG’s 4Q16 revenues

Previously in this series, we discussed how Harley-Davidson’s (HOG) sales in the US fell in the final quarter of fiscal 2016. At the time when HOG’s sales in its home market is stagnating, it becomes more important to pay attention to its performance in its international markets. Let’s find out how the company performed outside the US in 4Q16.

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Minor strength in international markets

In 4Q16, Harley-Davidson’s (HOG) motorcycle retail sales in international markets were down 1.3% YoY (year-over-year) to 20,033 motorcycle units. Sales in Canada witnessed a minor increase of 0.2% YoY for the quarter while sales in the Asia-Pacific region were down 0.4% YoY. Despite the 4Q16 sales drop in the Asia-Pacific region, fiscal 2016 was the best sales year so far for HOG in the region.

Retail sales in the EMEA (Europe, Middle East, and Africa) region registered gains of 2.3% YoY to 7,891 motorcycle units in the fourth quarter.

Worsening Latin America sales

In contrast, the weak economic environment continued to take a toll on HOG’s motorcycle retail sales in Latin America region. The company’s sales in Latin America dropped 14.4% in 4Q16.

In 3Q16, Harley-Davidson’s retail sales also fell 7.6% YoY in the region. In fiscal 2016, HOG reported a fall of over 13% YoY in its sales in Latin America, primarily due to the unstable Brazilian economy.

Among mainstream automakers (XLY), Latin American sales of General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) also have suffered due to challenging economic environment in recent years.

Overall, Harley-Davidson’s fiscal 2016 retail sales in all its international markets rose 2.3% to 98,631 units. In 4Q16, the company’s international retail sales fell primarily due to sharp declines in developing markets such as Brazil, India, and Indonesia.

It’s important for Harley-Davidson (HOG) to increase its international sales to shield the company from the negative impact of stagnating home market sales.

Continue to the next part to find out what factors drove Harley-Davidson’s 4Q16 margins.


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