Sales of Harley-Davidson’s (NYSE:HOG) signature motorcycles continued to slide during the second quarter as profit, though better than expected, eroded 19% for the struggling manufacturer.
The company reported $195.6 million in net income during the second quarter, versus net income of $242.3 million during the same quarter last year, it said in releasing its results before the markets opened Tuesday.
Sales of motorcycles, parts and merchandise fell to $1.43 billion during the second quarter from $1.53 billion during the same three months last year — a decline of 6%.
Industry analysts say bigger bikes are falling out of favor with younger riders. Sales of the industry’s largest bikes, with engines of 601 cubic centimeters or bigger, fell 4.9% in the second quarter compared to the same period in 2018, Harley said. All but one of the 36 models the company sells are at least that big with some Hogs weighing in around 1,000 pounds.
Though the company beat on earnings, they slumped on sales with Harley-Davidson worldwide retail sales decreasing 8.4% in the second quarter. U.S. retail sales were also down 8.0% in the quarter with international retail sales down 8.9%.
The "HOG" maker claimed the declines were driven by weakness in developed international markets.
Harley has struggled in recent years with declining sales at home and abroad, with bike deliveries are down by 5.3% compared to a year ago, according to its second quarter earnings report. In Asia and the pacific Harley has seen Motorcycle retail sales drop by 4,165 units from 2016 to 2018.
Shares in HOG were up 54 cents, or 1.6%, to $34.82
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