HOG’s 1Q17 revenues
Previously in this series, we saw that Harley-Davidson’s (HOG) retail sales in the United States fell in 1Q17. But as sales in its home market soften, it becomes more important for investors to pay attention to its international market performance. Let’s see how the company performed outside the United States in 1Q17.
Improved market share in Europe
In 1Q17, Harley-Davidson’s motorcycle retail sales in international markets fell 1.8% YoY (year-over-year) to 21,733 motorcycle units. However, these sales figures were better than the company’s international market retail sales in the previous quarter when it sold 20,033 units to retail customers.
It’s important to note that in 1Q17, HOG’s market share in its 601+ cc (cubic centimeter) segment in Europe improved to 10.0% from 9.7% in 1Q16. This improvement could be seen as a huge positive indicator as the company faces tough competition from other motorcycle manufacturers in the European market.
HOG’s retail sales in Canada fell 4.4% YoY in 1Q17, while sales in the Asia-Pacific region fell 9.3% YoY. In the Asia-Pacific region, demand from India was hurt by the government’s demonetization move.
Retail sales in the EMEA (Europe, the Middle East, and Africa) region were almost flat with about a 0.40% YoY fall in the first quarter.
Regaining strength in Latin America
In 2016, Harley-Davidson’s Latin American retail sales fell sharply due to the weak economic environment in the region. However, the company’s sales there rose 24.2% in 1Q17.
In the next part of this series, we’ll take a look at Harley-Davidson’s 1Q17 margins.