Due to the COVID-19 pandemic, Harley-Davidson started a large restructuring plan called Rewire that is applied to its whole business. Apparently, it’s bringing some highly positive results, as the company reported its best third financial quarter since 2015.
Here are some numbers according to the report:
- A decline in revenue by around 8% (total revenue of $1,166 billion)
- Year-over-year net income increased by 39% (total net income of $120 million)
- Year-to-date sales are down 18,1% (in the last quarter they are down 8,1%)
These numbers show that Harley is truly repairing the financial damage, which is reflected in most markets worldwide. For example, Europe has retail sales up by 6,7%.
With the Rewire plan, Harley quit 39 markets that showed slow sales, and in 17 other markets, the company will switch to a distributer model. One notable market for the distributor model is India, where Harley outsourced Hero MotoCorp for distribution, assembly, and other important tasks.
After this restructuring, Harley-Davidson operates in 36 markets, where the sales are going moderately well. Well, after this move, we are certainly thrilled to see how Harley will play its cards in 2021. The company is launching new bikes, maybe a modification for their lineup will arrive too. Of course, there is still room for improvement, as the damage was done, but it’s certainly great to see that their plan didn’t backfire!
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Source: Web Bike World