On October 26, 2022, Harley-Davidson held its 2022 Q3 earnings call. How are things going following the unexpected production shutdown and supply chain hiccups earlier in the year? From Harley’s account, things are looking better than expected.
Harley reports that in Q3, global motorcycle shipments are up 19 percent year-on-year over the same period in 2021. It credits this to robust recovery following the previously-mentioned production stoppage earlier in the calendar year. Additionally, the company reported a 21-percent increase in overall revenue over the same period in 2021. This number includes reporting from both the Motorcycles division and the Financial Services division.
What about retail sales of Harley-Davidson motorcycles worldwide? The Motor Company reported 18 percent growth year-on-year in the Asia-Pacific region, and sales declines of varying percentage points in all other markets.
In North America, motorcycle sales were down five percent year-on-year in Q3 of 2022, as compared to 2021. In the Europe, Middle East, and Africa (EMEA) region, sales were down four percent. The Latin American market saw the steepest sales drop of all, as numbers of bikes sold were down by 27 percent over the same period in 2021.
Still, these Q3 worldwide sales numbers represent a turnaround in fortunes from Harley’s Q2 2022 sales numbers. At its last report, the Motor Company noted a 23 percent decline in worldwide sales. Contrast that with the Q3 2022 worldwide number, and it’s now down to just a two percent decline in worldwide sales.
Following Q3 of 2022, the year-to-date sales percentages, as compared to the same period in 2021, are as follows:
- North America: down 14 percent
- EMEA: down two percent
- Asia-Pacific: up 12 percent
- Latin America: down 10 percent
- Worldwide total: down nine percent
These combined results led Harley to forecast a five to 10 percent growth in motorcycle revenue over the remainder of 2022. It’s basing this prediction on expectations that its Q2 wholesale motorcycle unit shortfall will continue to be made up in Q4. Additionally, the company expects the supply chain hiccups previously experienced to continue their stabilization trend. It also anticipates a deceleration in inflation, which should positively impact the costs of both materials and transportation logistics.
