Harley-Davidson on Thursday forecast full-year revenue for its motorcycle segment to be flat to down 9% from a year earlier, as higher borrowing costs and sticky inflation pressure demand for its iconic vehicles in North America.
Shares of the Milwaukee-based company were down nearly 2% in premarket trading.
The 120-year-old motorcycle maker has focused on selling fewer bikes at higher prices to boost margins, but it wasn’t enough to offset a decline in bike shipments.
The company’s global motorcycle shipments fell 13% in the fourth quarter, compared to a year earlier due to dealers maintaining lower inventory amid slow demand.
Harley-Davidson’s retail sales globally were also down 11%, led by a 9% fall in North America.
“North American retail performance continues to be adversely impacted by higher interest rates, economic uncertainty, and lower sales of non-core motorcycles,” the company said.
Harley-Davidson’s sales from motorcycles and related products fell about 14% to $792 million in the quarter, missing analysts’ expectations of $880.2 million, according to LSEG data.
The company’s profit of 18 cents per share came in much above analysts estimates of 4 cents. (Reporting by Kannaki Deka in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)