© Reuters. FILE PHOTO: Harley Davidson motorcycle is sold at a showroom in London
(Reuters) – American motorcycle maker Harley-Davidson (NYSE 🙂 on Monday reported better-than-expected quarterly profit and raised its full-year forecast for sales growth, when it focused on touring bikes. Larger and profitable calendars boost demand for stocks by more than 8%.
Since mid-last year, the Milwaukee, Wisconsin-based company, which has struggled to increase sales over the years, has shifted its focus to major bicycles, traditional markets such as the United States and Europe. Europe, as well as the older and wealthier clients.
In February, the motorcycle maker unveiled a new turnaround plan that targets low double-digit income growth through 2025.
The company said its retail sales, a measure of demand at dealerships, rose 30% to 32,800 motorcycles in North America in the first quarter.
Retail sales in Europe, Harley’s second-largest market outside the US, fell 36% to 4,900 motorcycles, due to the company’s decision to stop selling smaller and less profitable Street or Sportster motorcycles, and transport delay due to the COVID-19 pandemic.
The company said that sales incentives reduced and cut selling expenses, and administrative expenses increased the profit margin of motorbike business by more than 10 points to 18.5%.
It now expects motorcycle sales to grow between 30% and 35% by 2021, up from a previous estimate of 20% to 25%.
Harley’s net income tripled to $ 259 million in the quarter ended March 28, from $ 70 million a year earlier. On an adjusted basis, the company earns $ 1.68 per share, beating analysts’ average estimate of 88 cents per share, according to IBES data from Refinitiv.
The company’s revenue grew to $ 1.42 billion from around $ 1.30 billion. (https: //
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