X

Harley-Davidson (HOG) mulls exit from low-volume international markets

Shares of Harley Davidson (NYSE: HOG) fell over 5% on Tuesday during the pre-market hours after the motorcycle manufacturer posted a wide surprise loss in the second quarter, despite beating on the top-line.

Revenues for the second quarter almost halved to $865 million, as the global pandemic hit sales in all markets. Worldwide shipments fell over 60% during the quarter.

Meanwhile, the company added that it was evaluating plans of leaving international markets where volumes are inadequate to maintain continued investments. Instead, Harley Davidson has identified around 50 markets in North America, Europe and parts of Asia Pacific, where there is scope for higher growth potential.

CEO Jochen Zeitz said, “We’re overhauling our operating model and our product plan and are rewiring our market structure and organization to focus on the strengths of our brand and company. We are now working on our new 5-year strategic plan.”

Prior performance

Tags: Automobile
Related Post