Harley-Davidson on Monday raised its complete-year earnings forecast after smashing analysts’ quarterly profit estimates, vindicating Chief Executive Jochen Zeitz’s choice to focus on a lot more-lucrative touring bikes at the expense of less costly entry-level models. The ruling revokes the credentials that currently permit Harley to ship certain motorcycles to the EU from its international manufacturing facilities at a 6% tariff. It is the first quarterly sales increase in its most significant market in six years. Harley warned that a failure to mitigate the further EU tariffs would also impact its operating profit this year, which is forecast to be 7%-9% – up 200 basis points from the prior guidance. In the latest quarter, Harley reported a 31% year-on-year jump in retail sales in the United States. The organization, having said that, also received a setback in the European Union – its second-biggest market – exactly where all of its merchandise, regardless of origin, will be subjected to a 56% import tariff from June following a new EU ruling.
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