Why Harley-Davidson Stock Slumped Today
Shares of motorcycle company Harley-Davidson (NYSE: HOG) slumped on Thursday after the company reported financial results for the third quarter of 2023. Q3 sales dropped, profits pulled back even more, and the outlook didn't instill confidence. As of 2:50 p.m. ET, Harley-Davidson stock was down 7% but it had been down almost 12% earlier in the session.
For Q3, Harley-Davidson's revenue fell by a modest 6% year over year. But the more alarming thing is what management said about consumer discretionary spending. Many people finance a motorcycle purchase but higher interest rates are causing people to pull back. As management said, "It's just a limit of affordability within their month-to-month budget."
Harley-Davidson's management did what it could to reassure shareholders. It kicked off its press release by saying, "We have been able to achieve a result that preserves profitability at an industry leading level." And to its credit, the company's Q3 operating margin was 13.5%. That's down from its operating margin of 20.6% in the prior-year period, but it's still quite good.
Source Fool.com
