Harley on pace for 10 percent U.S. growth in Q4, analyst says

Harley-Davidson motorcycle sales have rebounded nicely from a late summer slowdown, allowing the Motor Co. to be “on pace to report Q4 retail unit sales growth of 9% worldwide (10% in the U.S.),” according to a research note provided to Powersports Business by BMO Capital Markets analyst Gerrick Johnson.

Johnson goes on to report that BMO Capital Markets believes that “the long-term health of the brand and a growing outreach program should help continue to grow retail unit sales in the high-single-digit range for the next several years. Given higher selling prices, restructuring savings, and leverage over fixed costs, we anticipate that this retail sales growth will result in EPS growth of more than 20% for the next two years.”

Johnson’s report, based on dealer feedback and recent sales and registration data, notes that consumers and dealers “seem especially pleased with new motorcycle models, including 110th Anniversary editions, the new CVO Breakout, the redesigned Street Bob, additions to the HD1 program, and hard candy paint jobs.”

Johnson also writes that Harley-Davidson’s growth “has accelerated into Q4, with retail sales running up close to 15% in October and up low double-digits in November.”

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