Powersports Business December 2023 | Page 8

8 • December 2023 • Powersports Business

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Harley Q3 retail sales down 15 percent in North America

“ Against a challenging macro and consumer backdrop , we have achieved a result that preserves profitability at an industryleading level . In addition , we successfully launched our pinnacle CVO motorcycles , with CVO retail sales up 25 %,” says Jochen Zeitz , chairman , president and CEO of Harley-Davidson .
Third-quarter global motorcycle shipments decreased 20 percent due to the production suspension announced in late Q2 2023 , prudent dealer inventory management and market conditions . Revenue was down 9 percent , with improved mix and global pricing partially offsetting unit declines . P & A revenue was down 8 percent , largely in-line with revenue from motorcycles . Apparel revenue was down 29 percent , driven by lower volumes in North America .
HARLEY-DAVIDSON RETAIL MOTORCYCLE SALES
Global retail sales of Harley-Davidson motorcycles in Q3 were down 16 percent versus the prior year , adversely impacted primarily by macro conditions in key geographies . North America retail performance was down 15 percent , impacted by both the high-interest rate environment in North America and the discontinuation of the Sportster at the end of 2022 .
The decline in EMEA of 13 percent was driven by weakness in the German regional market and the planned unit mix shift towards the profitable core product segments . The decline in APAC of 24 percent was primarily driven by weaker-than-expected demand in China . Latin America sales declines were driven by weakness in Brazil , partially offset by growth in Mexico .
Harley-Davidson reported Q3 retail sales were down 15 % in North America , but average unit inventory is still below 2019 levels . Photos courtesy of HDI
DEALER FINANCIAL SNAPSHOT

NORTHWEST -9.0 % Parts Department 5.4 % Service Department -7.3 % Major Units -5.7 % Overall

WEST -7.1 % Parts Department -1.6 % Service Department -10.1 % Major Units -8.7 % Overall

UNITED STATES -7.7 % Parts Department 0.4 % Service Department -10.4 % Major Units -8.8 % Overall

MIDWEST -6.7 % Parts Department 2.6 % Service Department -4.7 % Major Units -3.7 % Overall

SOUTH -7.1 % Parts Department -1.6 % Service Department -12.2 % Major Units -10.7 % Overall

NORTHEAST -10.4 % Parts Department 1.2 % Service Department -15.1 % Major Units -12.6 % Overall

OCTOBER 2023 VS . OCTOBER 2022
Dealerships were down an average of 8.8 % in combined revenue in October , according to composite data from more than 1,700 dealers in the U . S . that use the Lightspeed DMS . In the Northeast , dealerships were down 10.4 % in the parts department and the Northwest followed , reporting a 9.0 % decrease . The average dealership nationwide was down 7.7 % in the parts department . Dealerships reported a 0.4 % increase in service revenue compared to the year ago month . The Northwest saw the
most signifi cant increase in service revenue , reporting a 5.4 % increase . The South and West reported service revenue losses of 1.6 %. The average dealership was down 10.4 % in sales , following a 4.5 % decrease in September . The Midwest reported the lowest drop of 4.7 %, and the Northeast reported the most signifi cant drop of 15.1 % in sales revenue . Every region was down in combined revenue in October . The Northeast reported a 12.6 % decrease , the South reported a 10.7 % decrease , and the Midwest , reporting the least revenue loss , reported a 3.7 % decrease .
PARTS SALES Parts sales revenue was up at 614 dealerships and down at 1049 .
SERVICE SALES Service revenue increased at 788 dealerships and decreased at 827 .
MAJOR UNIT SALES A total of 542 dealerships were up and 923 were down .
FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data , contact : lightspeeddms . com