Harley-Davidson (NYSE: HOG) shares threatened to go seriously south Tuesday after the company reported fourth-quarter earnings that missed analysts’ expectations.
The motorcycle maker is battling declining sales as its core riders age, particularly in the United States, its largest market. The company said that despite the challenges attracting younger customers, it finished the year with 52,000 more riders than it had one year ago.
Adjusted earnings for Harley came in at 17 cents per share versus 28 cents per share forecast by experts. As for revenues, the figure registered at $1.15 billion vs. $1.05 billion forecast.
The company reported $500,000 in net income during the fourth quarter, versus net income of $8.3 million on consolidated revenue of $1.23 billion in the same period in 2017.
Harley-Davidson has struggled in recent years with declining sales and fears buyers simply are not as interested in motorcycles as they have been in previous generations. The company has launched an ambitious plan to attract two million new riders within a single decade.
What’s more, the company is setting up riding schools around the United States, has plans to launch 100 new motorcycles by 2027 and increase volume in its international business 50%.
"The challenges we experienced during the year reinforced the commitment we have for our More Roads to Harley-Davidson accelerated plan for growth," according to CEO Matt Levatich.
"Our plan addresses the challenges of today and the opportunities we see for growth ahead, and we are energized by the momentum we are building."
Shares in HOG retreated, however, by $2.82, or 7.7%, early Tuesday, to $33.79
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