HOG - Harley-Davidson's Earnings Beat Doesn't Mean It's on the Right Track
Through the last few years, Harley-Davidson (NYSE: HOG) has suffered. The sales environment has been tough for the maker of classic American motorcycles, as shifting consumer preferences and its relatively high prices have driven customers elsewhere.
Based on the latest earnings report, released Tuesday, the situation doesn't appear to have improved thus far in 2019. According to the report, Harley's total worldwide sales fell 4.9% in the first nine months of the year.
In the third quarter, Canada and Asia were Harley-Davidson's only growth markets. According to the earnings release, U.S. unit sales slid by 3.6% year over year while international sales rose 2.7%. Its failure to recover its traction in the domestic market has been an ongoing issue for Harley, and the gains it has made in foreign markets haven't been enough to compensate for its poor performance at home. Combined, the number of motorcycles sold this quarter fell by 1.2%.