By Dennis Chung
Harley-Davidson reported a 9% increase in motorcycle sales volume and 12% increase in sales revenue over the first quarter of 2021, encouraging signs that the new Hardwire business plan is paying off.
According to its first quarter 2021 report, Harley-Davidson reported sales of 44,200 motorcycles, compared to 40,400 motorcycles sold in the same period last year. The increase was fueled almost entirely by North American sales, which saw a 30% jump to 32,800 units over the quarter. This was enough to more than offset a 36% decline in European sales, which was impacted by the company’s decision to stop selling Sportster and Street models in those markets.
Harley-Davidson’s European sales dropped from 7,700 to 4,900 over the first quarter. The decision to stop offering Sportsters in E.U. markets contributed to the decrease.
Motorcycle sales generated $1.02 billion in revenue, up from $899 million in the first three months of 2020. Smaller gains in parts and accessories plus general merchandise raised the total revenue to $1.23 billion compared to $1.10 billion last year. Overall, Harley-Davidson reported a net profit of $259 million in the first quarter, up from $70 million in Q1 2020.
“I am very pleased with the pace of recovery that we have seen across our business, as demonstrated by the strong financial results this quarter,” says Jochen Zeitz, chairman, president and CEO, Harley-Davidson. “We can see the initial signs of consumer excitement and optimism returning and I am confident Harley-Davidson in 2021 is a significantly leaner, faster, and more efficient organization which is ready to win and successfully deliver on our 5-year Hardwire strategy, as the most desirable motorcycle brand in the world.”
The first quarter financial report wasn’t all good news, though, as Harley-Davidson faces a new challenge with European Union import tariffs on its products about to …read more