Harley-Davidson (NYSE:HOG) shares went into reverse on Thursday despite the premium motorcycle manufacturer delivering better-than-expected first quarter results.
The company reported earnings per share of $2.04, up 41% from the year-ago quarter and ahead of the consensus analyst expectation of $1.42 per Zacks Consensus Estimate.
Revenue also revved higher at $1.8 billion, up 20% year-over-year and above Wall Street’s expectation of $1.4 billion.
However, investors were instead focused on softening demand in the company’s key North American market, as inflationary pressures saw retail sales in this region fall 17% during the quarter.
The company attributed the decline in its North American retail performance due to the timing of new product launches and shifting macro conditions.
While global motorcycle sales were down 12%, they rose 3% in the Asia Pacific which Harley-Davidson (NYSE:HOG) said was driven by continued strong demand in Japan and Australia.
Harley-Davidson reaffirmed its full-year 2023 guidance, another disappointment for investors who had been hoping for an upward revision.
Shares of Harley-Davidson were down 2.2% at US$36.09 on Thursday afternoon.
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