CHICAGO — Harley-Davidson on Tuesday reported a larger-than-expected decline in its motorcycle revenue, hurt by a continuing slide in retail sales in the United States. Its shares plunged in pre-market trading.
The company said revenues at its motorcycles, parts & accessories and general merchandise segment fell an annual 8.5% to $874.1 million in the fourth quarter, from $955.6 million a year ago. Analysts surveyed by Refinitiv on average expected revenues to decline 3.7% to $920.14 million in the quarter.
Harley's shares were last trading down 7.2% at $32.34 in pre-market trading.
Harley's challenges in the United States, which accounts for more than half of the company's sales, are well documented: Core customers are growing older and outreach efforts to attract new and young riders and offer new products have yet to show results.
In the December quarter, U.S. retail sales declined for the 12th straight quarter, falling an annual 3.1%.
Harley expects revenues from the motorcycles segment to be about $4.53 to $4.66 billion in 2020 compared with $4.57 billion last year.
Lower restructuring expenses helped the company report higher profits in the latest quarter. Its net income rose to $13.5 million or $0.09 a share in the December quarter from $0.5 million or $0.00 per share a year earlier.
Adjusted profit for the quarter came in at 20 cents a share, compared with 17 cents per share last year.