Harley-Davidson 3rd Quarter Results 2023

Harley-Davidson's third-quarter profit declined by 24% due to reduced consumer spending influenced by higher borrowing costs and inflation. Rising interest rates and inflation made customers more selective in their spending, focusing on essential items over big-ticket leisure purchases. While Harley-Davidson has maintained profit margins among its wealthier customer base, efforts to attract younger riders with more affordable had limited success.

The introduction of Nightster was set to replace the Sportster Iron 883, 1200 & 48 which was for the longest time the entry way into the Harley-Davidson brand. While the price point is as affordable as the competitors such as the Indian Scout sales remained sluggish.

Slowing demand and lower motorcycle shipments have led to a murkier outlook for the retail sector, reflecting a cautious consumer environment. Rival Polaris Inc. (Indian) also reported a 4% decline in sales, highlighting a potential downturn in the recreational vehicle industry. Harley's net profit fell to $198.6 million, or $1.38 per share, compared to $261.2 million, or $1.78 per share, in the previous year.

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