Harley-davidson profit jumps amid boom in leisure spending

Harley-davidson Inc reported higher-thanexpected quarterly profit on Thursday as a boost in bike shipments, coupled with strong pricing, allowed the motorcycle maker to navigate cost inflation and deliver on pent-up demand.

Shares in the U.S. company rose 8.3%.

The manufacturer has either beaten or met Wall Street earnings forecasts for the previous seven quarters, benefiting from strong demand for leisure purchases despite high inflation dampening consumer confidence.

Harley-davidson said it expects revenue from its motorcycle business to grow in 2023. The company rebounded from a production slowdown in May, which executives attributed to a parts issue from a third-party supplier. Showrooms that were at a deficit during the summer are starting to be replenished with new and used models.

“We ended the year in a healthier inventory position and are set up for a solid start to the riding season,” Gina Goetter, chief financial officer, told shareholders on a conference call.

Consumer interest in outdoor recreational activities has been a boon to the bike manufacturer, even as it faces challenges such as lingering supply chain shortages.

The Milwaukee-based company posted a 12% jump in fourth-quarter revenue to $918.63 million, topping expectations of $909.97 million in a Refinitiv survey of analysts.

A combination of price increases and surcharges for its popular cruisers, trike models, and longer-range Grand American Touring bikes padded the bike maker’s bottom line given high raw material and expeditedshipping costs.

Global motorcycle shipments rose to 34,000 from 28,900 a year ago.