Harley-Davidson's shares fell steeply on Thursday following the company's announcement of a significant slide in international demand for their products during the first quarter. The company's stock was down 14.6%, trading at $33.67, its lowest level since late January. This plunge into the negative for the year was largely due to reduced demand in Europe, the Middle East, and Africa, where sales of retail bikes fell 11% to 5,264 units. In the Asia-Pacific region, sales declined 12% to 6,034 units.
There was some positivity in the North American market, the company's largest, where sales increased by 6% to 27,486 units. Overall, the company's total sales were 20 less than last year’s sales. Harley-Davidson stated that sales of their new touring models - Street Glide and Road Glide - had boosted North American sales, but these models did not reach international dealers until the quarter's end.
This news dampened the impact of Harley-Davidson’s better-than-expected earnings. Despite the negative news, the company posted adjusted earnings per share (EPS) of $1.72, a decline of 16%, and revenue slid 3% to $1.73 billion, but both were above expectations.