Harley-Davidson Announces Second Quarter 2019 Results
MILWAUKEE, July 23, 2019 - Harley-Davidson, Inc. (NYSE:HOG) today reported second quarter 2019 results. The company made progress towards its plan to build more riders through its More Roads to Harley-Davidson accelerated plan for growth and expects to substantially mitigate incremental EU and China tariffs early in the second quarter of 2020.
Second Quarter 2019 Highlights
Delivered GAAP diluted EPS of $1.23 per share
Repurchased $42.9 million of shares; paid dividends of $0.375 per share
Obtained regulatory approvals required to mitigate the majority of incremental EU tariffs
Completed key milestones in its manufacturing optimization initiative
Reduced U.S. retail motorcycle inventory, believe positioned well for cutover to model year 2020
Drove year-over-year retail sales growth of 77 percent in its ASEAN markets through Thailand manufacturing strategy
Confirmed highest ever Harley-Davidson U.S. ridership; over 3 million riders in 2018
Announced a broader access initiative for Asia with a small displacement motorcycle planned for 2020
Second quarter 2019 GAAP diluted EPS was $1.23. Year-ago GAAP diluted EPS was $1.45. Excluding restructuring plan costs and the impact of incremental tariffs, second quarter 2019 diluted EPS was $1.46 compared to $1.52 in the second quarter of 2018. Second quarter 2019 net income was $195.6 million on consolidated revenue of $1.63 billion versus net income of $242.3 million on consolidated revenue of $1.71 billion in 2018.
Harley-Davidson worldwide retail sales decreased 8.4 percent in the second quarter. U.S. retail sales were down 8.0 percent in the quarter driven largely by continued weak industry sales. Harley-Davidson international retail sales were down 8.9 percent driven by weakness in developed international markets on the lapping of strong initial sales of new models introduced last year.
“In the second quarter we achieved significant advancements under our More Roads plan and we continued to lay a solid foundation for future growth,” said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. “The decisions and investments we’re making, within a highly dynamic and competitive global marketplace, demonstrate our intense focus to build the next generation of riders and maximize shareholder value.”
Strategy to Build the Next Generation of Riders
Harley-Davidson continues to inspire diverse, new riders around the globe. Harley-Davidson ridership in the U.S. has been up each year since 2001 and was at an all-time high of over 3 million riders in 2018. The company increased its reach and impact in the second quarter and delivered the following:
More, younger riders - U.S. rider training participation was up, with the greatest increase among 18-34 year-olds
Of total U.S. new retail sales in Q2, the mix of 18-34 year-olds was up 2.7 percentage points
Emerging market year-over-year retail sales growth of 7.6 percent was aided by more accessible pricing from local manufacturing in Thailand
More Roads to Harley-Davidson accelerated plan for growth
The following information was filed by on Tuesday, July 23, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-Q Quarterly Report Accession Number: 0000793952-19-000042 Submitted to the SEC: Thu Aug 08 2019 6:49:15 AM EST Accepted by the SEC: Thu Aug 08 2019 Period: Sunday, June 30, 2019 Industry: Motorcycles Bicycles And Parts