HOG - 4 Reasons to Be Cautiously Optimistic About Harley-Davidson's 'Rewiring' Plans
Harley-Davidson (NYSE: HOG) struggled for years with falling sales, the needle of its popularity creeping inexorably toward "empty" as generational changes ate into its once dominant motorcycle market position. Recently it has attracted bullish attention from several prominent Wall Street analysts, though many commentators and ordinary investors remain skeptical. While some rough roads may still await Harley-Davidson, there are at least four reasons why the bulls could be right about the company's chances to reshape itself for new success.
Looking to win back growth and reconfigure itself for the current market, Harley-Davidson announced a five-year strategic plan, dubbed the Hardwire plan, on Feb. 2.
This plan appears to aim at using digital marketing, developing the company's touring and three-wheeler segments, launching more electric motorcycles, starting used motorcycle sales, and improving branding to create "increased profitability and low double-digit EPS growth through 2025." Increasing "desirability," or finding a marketing approach better suited to younger generations, focusing on its 10 best markets worldwide, and expanding into a "global lifestyle brand" are among the methods it will use.
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4 Reasons to Be Cautiously Optimistic About Harley-Davidson's 'Rewiring' Plans