We have crossed that halfway point in the year and Harley Davidson is still looking for ways to change their future. In past posts, we’ve talked about how Harley might need to to ramp up the marketing. Smaller bikes and global markets for example as well as the well defined strategy we were happy to see as the year started.
As Sturgis is wrapping up, its more and more evident that the motoloving demographic is shrinking. Aging away and not being replaced by eager new riders.
HD recently reported their 2nd quarter earnings.
- Earnings Per Share (EPS) of 1.23 billion
- Revenue @ 1.43 billion
The earnings report is still littered with misses and with negative tone. Of lowering expectations and dropping estimates .
One factor that HD states as having an impact on both sales and the company, is tarrifs . They are working to modify strategies to account for this, however it has yet to balance out.
Harley Davidson is fighting 3 T’s
There are other things that HD has to deal with . Aging motorcycle riders and the lack of popularity and affordability of its big marque cruisers. The market for a big bagger continues to shrink. As more and more baby boomers become unable or unmotivated to brave the highways, there is no one to take their place. Time, it seems , is not on Harley’s side.
Despite the decreasing pool of new riders, Harley is aware of the trends in the industry and in both transportation and recreation. A quick peak at their strategy will clear that for you.
- Adventure Bike
- Electric Bike
- Scooters/mini bikes
- Naked Sport Bikes
Harley also announced the new partnership with SPARTAN. The globally popular fitness and endurance event. This is potentially huge for HD. It represents a shift to a younger demographic. One that has income and loves to be outside.
The pieces for HD to do well are all in place. We will all just have to see if the political and economical climates support their evolution.