Harley-Davidson dealers saw double-digit declines in Q4, says UBS

UBS keeps a Neutral rating on Harley-Davidson with a $29 price target after getting feedback from a large group of Harley Davidson dealers that represent all seven regions of the U.S. about what is happening in the sales environment, their inventory levels, and their expectations for the year ahead. Most dealers that responded saw double-digit year-over-year declines in new Harley-Davidson bikes sold in Q4, and the new bike sales environment was more mixed in December 2023, the analyst tells investors in a research note. The firm’s dealer group on average sold new bikes for 6% below the suggested retail price in December. The dealer group also sold more used bikes than new bikes in December, UBS points out. The dealers felt the biggest factor hurting retail demand is consumer concern about the economy, it adds. None of the dealers saw a reduction in inventory last month compared to same period in the year prior, and almost all reported their inventory was up significantly, according to UBS.