July 23 (Reuters) – Harley-Davidson reported lower second-quarter profit and revenue but raised its annual forecast on Thursday, as the legacy motorbike maker leaned on its wider turnaround plan to navigate higher costs of raw materials.
The company has been focused on its “Back to the Bricks” turnaround plan which attempts to capture younger riders by bringing back some of Harley’s iconic motorcycles and rolling out models with smaller engines.
Here are the details:
• The company under new CEO Artie Starrs has been trying to shift its focus away from premier touring models by moving back to lighter and more affordable bikes, with an entry point to the Harley experience now hovering around the $10,000 mark.
• Shares of the company fell about 1% in premarket trade.
• Banking on stronger retail demand, the company now expects its annual global motorbike retail sales to be between 133,500 and 138,500 units, up from a previously expected range of 130,000 to 135,000 units.
• The Milwaukee-based company reported a quarterly net income of $80 million, or 75 cents per share, compared with $108 million, or 88 cents per share, a year ago.
• Overall revenue in the second quarter fell 6% to $1.23 billion from a year earlier.
• Harley’s second-quarter gross margin fell to 27.5% from 28.6% a year earlier, hurt by higher cost of raw materials, an unfavorable product mix and foreign exchange impacts.
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)
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