What's going on?

American motorcycle maker Harley-Davidson reported a weaker-than-expected fourth quarter on Tuesday � and the wheels fell off its stock, which dropped 5%.

What does this mean?

Both revenue and profit fell at Harley last quarter, riding in below investor predictions. The company�s European challenges were well flagged last year � but in the US, where it sells 60% of its bikes, sales fell more than anywhere else. With the US president kickstarting a boycott of Harley in response to the bike builder�s plans to shift some production to lower-cost plants overseas, US consumers might�ve ridden political pillion.


Harley expects to sell between 217,000 and 222,000 hogs in 2019 � not exactly firing on all cylinders compared to investors� forecast of around 228,000. It�ll be the fewest number of bikes the company�s sold in eight years.

Why should I care?

For markets: A new pitch for new markets.

Harley-Davidson�s bikes once thrummed the heartstrings of stereotypical Terminator types � but that�s not working so well with today�s buyers. That is, if they�re buying vehicles at all. Harley�s hit on a new wheeze to win customers: a fresh generation of premium electric motorcycles, more pricey but probably safer than an e-scooter. The first-ever police car was electric � and as the world comes full circle, Harley�s investors will hope that the retro trend for big-but-green catches on.

The bigger picture: More hair in Harley�s face.

Data this week showed that the number of people in England and Wales turning to insolvency last year � a process by which debtors wrangle a new repayment plan for debts that�ve spiraled out of control � hit its highest level since 2011. And with the amount Brits owe on credit cards now the highest since records began, potential customers there probably can�t afford a Harley. For those who can, the strength of the US dollar means Harley’s local currency profit won�t translate into quite as many dollars back home � a problem hitting several US firms, including Pfizer.