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[muddypaws]

Harley-Davidson to Cut Jobs as Results Miss Expectations
Motorcycle maker lowers shipment guidance
By Anne Steele
Oct. 20, 2015 8:40 a.m. ET

Harley-Davidson Inc. said it will lay off employees and damped its shipment guidance for the year as its third-quarter earnings dropped more than expected on slower retail sales.

[ultrarider123]

Helpin' ya out, Bill....

Here's the link before anybody asks him for it....
http://www.wsj.com/articles/harley-davidson-to-cut-jobs-as-results-miss-expectations-1445344845

[9 1/2 Beers]

stocks off 6.50 on this news, trading at 49.50

[muddypaws]

To pick up sales they might have to think of a bit of discount. Last few bikes all I got was a shirt...

[9 1/2 Beers]

Now down 8 bucks 

[gadgetz]

Why Harley-Davidson, Inc. Plunged 15% Today
Increased competition and a decline in market share is part of the reason behind Harley-Davidson's stock decline.


Longview
What: Harley-Davidson (NYSE:HOG), one of the most storied and recognizable brands in America, saw its stock plunge more than 15% on Tuesday morning after it reported a disappointing third quarter, due to increased competition and foreign exchange remaining a headwind.


Harley-Davidson Chief Executive Matt Levatich put it bluntly: "The third quarter did not unfold as we expected."


So what: Harley-Davidson's worldwide retail sales declined 1.4% to 72,178 units, which was dragged down by a 2.5% decline in U.S. retail sales. Furthermore, revenue from motorcycles and related products rose a meager 0.9% to $1.14 billion, which fell short of analyst estimates of $1.21 billion. While revenue did post a 0.9% gain over last year's third quarter, it was offset by a 5.2% unfavorable currency exchange, which is a headwind likely to persist at least through the remainder of 2015. Earnings per share checked in flat year over year at $0.69, but that also fell far short of the $0.78 estimated by analysts.


Perhaps most concerning was Harley-Davidson's 3.9 percentage-point decline in U.S. new 601+ CC (heavyweight motorcycle) market share, or 390 basis points, from 56.3% during last year's third quarter to 52.4% currently. Year-to-date market share tells a similar story, as Harley-Davidson's retail market share of the new 601+ CC segment sits right at 50%, compared to 53.7% through the same time period in 2014.


Now what: A challenging third quarter forced management to reduce its worldwide shipment projection by 11,000 to 265,000-270,000 -- that's down about 2% compared to 2014, and down from the previously expected 276,000-281,000 range. Furthermore, in part due to the disappointing results, Harley-Davidson expects to incur between $30 million and $35 million in fourth-quarter expenses due to looming layoffs and related costs.


Going forward, Harley-Davidson plans to increase product and brand awareness through increased advertising, grow new ridership in the U.S. market through its rider training programs, and open between 150 and 200 dealerships globally by 2020 to try to stoke growth for investors. 





STOCKS



Harley-Davidson, Inc.
NYSE:HOG
$47.25  $-8.80(-15.70%)

[sadunbar]

Got to believe increased spending in engineering intended to improve quality and substantially improved customer service/customer service training at the dealership and mothership would yield more bottom line results.  Of course, that would require a paradigm shift.  If their analysis indicates more spending on advertising and marketing is the answer, who am I to second guess...  But my background is in engineering and operations, so perhaps I am biased?   



par·a·digm shift:
noun:  a fundamental change in approach or underlying assumptions.

[FLSTFI Dave]

I think, people know all about harley.  Advertising the one of the most Iconic brands in the world is not what they need.  Heck they have the best brand loyalty of anyone.

What they need is QUALITY improvement to keep customers, and get owners talking positive.  To keep us from looking at Indian and BMW or such.

[murphy]

Don't forget Victory too!

[hdguy1]

I think, people know all about harley.  Advertising the one of the most Iconic brands in the world is not what they need.  Heck they have the best brand loyalty of anyone.

What they need is QUALITY improvement to keep customers, and get owners talking positive.  To keep us from looking at Indian and BMW or such.

X2

[2smoke]

I watched Matt Levatich's 8 minute video on Monday night.  Video was released after the Stock Market closed for the day.  The dude is in a tough spot.  Wandell murdered that company and now Matt is sticking his fingers into the gushing bullet holes.  The hourly workforce was ravaged. Quality quickly suffered and the consumer is angry.  Wandell's pet project of selling chitty little bikes that are waaaay over priced is failing.  Pile all that on an economy that is flat at best and bam! You find yourself in the dog house.  Best of luck.  I DO NOT have any intention of buying a new Harley (I have purchased about 10 since year 2000) because they are not giving me any reason to. 

[ultrafxr]

I watched Matt Levatich's 8 minute video on Monday night.  Video was released after the Stock Market closed for the day.  The dude is in a tough spot.  Wandell murdered that company and now Matt is sticking his fingers into the gushing bullet holes.  The hourly workforce was ravaged. Quality quickly suffered and the consumer is angry.  Wandell's pet project of selling chitty little bikes that are waaaay over priced is failing.  Pile all that on an economy that is flat at best and bam! You find yourself in the dog house.  Best of luck.  I DO NOT have any intention of buying a new Harley (I have purchased about 10 since year 2000) because they are not giving me any reason to.

He definitely is in a tough spot.  But don't forget he was right there with Wandell the wonder helping him commit mayhem on the company. 

[RonandJanet]

Brand equity is the driver just as in any branded business. It is hard to gain the equity and it is just as difficult to keep it.  There are at least three key components the actual value of the product to the consumer (economics [reliability, etc.]), the marketing (advertisements) and the emotional attachment to the brand.   I think HD is struggling with the value proposition which is eroding the emotional connection.  When the economy is not strong this becomes even more of an issue. The marketing brings new people in but if the economics are not there it will not work. HD is missing the real issue which is providing a good product that is reliable and meets the consumer's desires (performance, looks, customer service, etc.).  When the consumer value drops so will the all the merchandizing and this will lead to "bad" word of mouth advertising. They need to take a closer look at the real problem.   

[2smoke]

He definitely is in a tough spot.  But don't forget he was right there with Wandell the wonder helping him commit mayhem on the company.

Most definitely!  Wandell was hired for one reason- to slash and burn.  And he did a great job of it.  But only a fool would poison his own meal.  Remember,  Levatich was at the MoCo when Rich Teerlink and Jeff Bleusteen were CEO (Both part of the original 13 buy-out people) so he was there in the glory years.  Levatich is a long term employee. Why mess with success? (Answer: enormous greed) All of the original 13 are gone now.  Where is the vision for the company coming from?  Matt has to turn this around. He is wearing the Daddy pants now.  This could be his swan song or his waterloo. Does he have the moxxy to do it?

[JCZ]

Bumping advertising?  What other company has brand recognition to this level?  What other company does men and women tattoo all over their bodies.

Their direction is proof positive that they're not listening to their customers......bump the quality control and the rest will take care of itself. Must be rocket science for those at the top.....those only concerned about the stock holders.

I don't think any of us that have been riding Harelys for years, decades is surprised by this.....we were calling this out 5-8-10 yrs. ago.