There wasn’t a lot of specific news about Harley-Davidson final month, though that doesn’t meant investors don’t consider it will be harm by tariffs eventually. The association was a approach aim of tariffs imposed by a European Union in plea for President Trump’s steel and aluminum tariffs, that it pronounced could cost it $100 million. As trade wars with Mexico and China feverishness up, companies that buy line to make products in a U.S. could see costs arise even serve than they already have.
On tip of intensity tariffs, investors have been examination motorcycle sales drop, quite in a U.S., where Harley-Davidson is essentially focused. You can see next that over a past 5 years, both income and net income have been usually declining, and a association doesn’t have room to boost prices to equivalent aloft costs or it might see volumes tumble even further.
Harley-Davidson is stranded between a stone and a tough place, and we don’t see an easy approach out. The code isn’t resonating with younger consumers, and comparison consumers aren’t gravitating to new products like a Livewire electric motorcycle. Unless some of a underlying trends pushing motorcycle direct change, this isn’t a batch liberation we would be betting on.