Wall Street Skeptical On Harley-Davidson

Wall Street Skeptical On Harley-Davidson

The Motley Fool is reporting that Wall Street is throwing a BS flag on the rosy picture Harley-Davidson is painting with investors.  The report indicates the iconic brand is facing a one-two punch of slowing sales, and strong competition from resurgent rival Indian Motorcycle Company.

At its peak (2006) HD shipped 350,000 units to dealers, but when the recession hit sales fell through the floor, and in 2010 shipped only 210,000 units.

Harley-Davidson was able to claw its way back to 270,000 bikes shipped in 2014, still far below it's previous high water mark.

image from Fool.com

Despite the negatives, such as an aging demographic and losing market share to Indian, HD has expanded it's market overseas and is fighting back domestic competition with discounts and other programs to keep the faithful in the fold and attract younger riders.

The report credits one analyst who has speculated that Harley-Davidson will report a 7% downturn in sales when it releases first quarter sales figures this month, and another analyst is speculating that Polaris is, at the same time, increasing it's share of the market.

The report concludes that Harley-Davidson "isn't in any danger of going out of business, but that doesn't mean investors shouldn't be surprised if there's still a lot more downside to its stock after it finally reports earnings."

Read the full story here

Back to blog

Leave a comment