North American sales rise 31 percent in October
Triumph Motorcycles Group announced that Group turnover increased by 11 percent from £312.4 million ($488.7 million) in 2010 to £345.3 million ($540.1 million) and unit sales of motorcycles increased by 7 percent from 45,501 to 48,684 in fiscal 2011. Triumph attributed the increase in unit sales to the introduction of incremental models to the range.
The operating profit before interest and tax grew from £15.1 million ($23.6 million) to £22.3 million ($34.9 million) due to strong sales of motorcycles and related products, benefiting from improved use of working capital and continued focus upon the cost base, according to the company.
Triumph reported that the global market (for motorcycles bigger than 500cc) is down almost 50 percent from its peak in 2007, decreasing by 7 percent within the last year alone.
Officials said Triumph remains cautious in terms of the general market outlook for 2012 due to the continued global economic turmoil and the impact on consumer confidence and in particular, spending on discretionary consumer goods. Officials also said the company has been able to increase spending on R&D during the recession, which continues to positively impact the business.
North America update
Triumph’s North American subsidiary was established in 1994 and includes a network of approximately 200 dealers. The North American dealer network had an increase in retail sales of 31 percent for the month of October.
Triumph reports that in the last seven months of the fiscal year, the company outperformed the market, growing market share by half a percentage point. Turnover increased by 9 percent, and retail sales of motorcycles increased by 15 percent. The increase was helped by the introduction of new models late in the selling season, but increases also were seen across the entire model range lineup, officials said.
Parts, accessories and clothing grew at a rate of 8 percent due to the introduction of several new core riding and seasonal items. With the release of the new Tiger 800, officials said the range expanded with new adventure riding wear such as the all-new Explorer Jacket; in the Heritage line with the release of two Lewis Leathers jackets; and in the Legends line of wear featuring clothing that pays homage to icons of the screen who had a close relationship with Triumph, Steve McQueen and James Dean.
The North American subsidiary is focusing on growing the business through increasing brand awareness, dealer profitability and expanding the network footprint in key open territories.