Harley-Davidson Inc. (NYSE:HOG) attributed better than expected results to its newer products and revved-up marketing campaign which offset a difficult period.
Profits fell less than had been anticipated in the first quarter, driven by higher motorcycle sales, said the iconic motorbike maker.
It sold 1.4% more motorbikes compared with the corresponding period last year, with sales increasing across all regions except the US and Latin America.
Sales edged down 0.5% in the states and in Latin America sales tanked 26.5%.
But this was offset by a 16.3% rise in Canada, 6.6% in Asia and 8.8% in Europe, Middle East and Africa.
Despite the drop in sales, Harley still managed to snatch over 50% of the market share in the quarter.
Harley has struggled to maintain momentum as its traditional baby-boomer customers ride off into the sunset of old age. But it hopes to boost sales to younger bikers through new products, including new high-powered versions of its classic Low Rider and Breakout motorcycles.
The Wisconsin-based company expected to raise its marketing campaign by 65% or about $70mln this year.
Revenues rose 4.4% to $1.58bln, while it reported net income of over $250mln, down slightly from $269.9mln in the previous year.
Shares were up 15% in the last 3 months rose 5.4% to $49.50 in premarket trading.
“The increased marketing and new product investment are beginning to take hold and we anticipate continued progress across our focus areas as we dial in and ramp-up our approach,” said chief executive Matt Levatich.
Harley expects to ship around 85,000 motorbikes in the second quarter, in line with the same period last year and continues to expect growth of around 2%.