April 21, 2016 4:27 pm | Updated 6 months ago.
The motorcycle giant witnessed an increase in its profit as revenue escalated by 4.8% to $1.75 billion. This rise is due to a rise in overseas sales coupled with the marketing of new Harley-Davidsons model. However, sales in the US registered a fall, which indicates that the company is not popular among youngsters.
According to the company, the spending on marketing in the first quarter registered a rise by more than 50% from last year and will further increase it by 65% in the current year. Retail sales of Harley-Davidson bikes globally rose by 1.4% in the very first quarter. The company changed its marketing strategy by organizing demo rides for its bikes in the US and abroad and introducing programs to impart riding lessons to motorcycle lovers. The company aims to build a brand and create customer loyalty.
The company envisages on shipping more motorcycles this year than in 2015 as customers outside the US accounted for more than 39% of the motorcycles sold by Harley in the first quarter. However, shares of Harley-Davidson saw a drop of 3% at $45.52 a share.
Date of Publication: April 19, 2016