Harley-Davidson Inc announced quarterly sales on Tuesday that exceeded analysts’ expectations, indicating that the company’s strategy to shift its focus away from motorcycles and toward more expensive touring and cruiser bikes was successful.
Early in pre-market trade, the company’s stock was up 6.8 percent to $38.59 per share.
Following a nearly two-year decline in sales, Harley-Davidson refocused its strategy in 2020 to focus on selling its high-margin Touring, big Cruiser, and Trike motorcycles to older and wealthier clients in areas such as the United States and Europe, among other things.
Following the fourth quarter ended December 31, Harley-Davidson reported motorcycle and associated products revenue of $816 million, which was higher than analysts’ expectations of $663.8 million, according to data from Refinitiv IBES.
Consumer retail sales in the United States, which is the firm’s largest market, increased from 17,274 units to 18,855 units, according to the company.
In the fourth quarter, net income increased to $21.6 million, or 14 cents per share, compared to a loss of $96.4 million, or 63 cents per share, in the same period the previous year.