Harley-Davidson, Inc. (NYSE: HOG) reported its fourth quarter financial results before market open on Tuesday and missed analysts’ earnings estimates. Shares plummeted by 9% during Tuesday’s pre-market hour.
For the fourth quarter, Harley-Davidson reported adjusted earnings of USD 17 cents on revenue of USD 1.15 Billion. Refinitiv analysts expected earnings of USD 28 cents on revenue of USD 1.05 Billion.
Harley-Davidson said its motorcycles and related products segment revenue grew by 1.1% year over year in the full year, adding a total of 52,000 new riders in the U.S.
The motorcycle company said that it saw stronger sales internationally as the market emerged overseas. However, full-year sales still fell by 6.1% compared to 2017.
U.S. retail sales fell 10.2% for 2018 compared to 2017. Harley-Davidson says there is ongoing declines in the U.S. motorcycle industry.
“In 2018 we delivered value to our shareholders through improved earnings and cash from operations. The challenges we experienced during the year reinforced the commitment we have for our More Roads to Harley-Davidson accelerated plan for growth,” said Matt Levatich, President and Chief Executive Officer, Harley-Davidson, Inc. “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. New and different people, riders and non-riders, are taking notice of Harley-Davidson and the thrill of riding.”
Through 2022, Harley-Davidson now aims to bolster its financials. The Company intends to launch new products to keep riders engaged as well as inspire a new generation of riders. The Company has also met with customers in order to discuss the retail experience itself.
Despite Harley-Davidson’s initiative, there is still concern among investors that incoming generations or even baby boomers won’t make up much of its customer base, according to CNBC. If the newer generations do purchase a motorcycle, it’s more for the lifestyle and culture of riding.
Regardless, Harley-Davidson is still moving forward with its aggressive plan to add 2 million new riders within the next decade. The Company is planning on launching riding schools, release 100 new motorcycles by 2027, and increase volume internationally by 50%.