HOGging The Global Limelight: Harley-Davidson, Inc. (HOG)

Page 1 of 2

Earnings Analysis: Harley-Davidson Inc. (NYSE:HOG)Harley-Davidson, Inc. (NYSE:HOG) is really ramping up this year and why not? In honor of its 110th anniversary it’s rocking and rolling globally with special events from Milwaukee to Malaysia. The theme is Freedom and in a nod to Olympic tradition a single black leather jacket, The Freedom Jacket, emblazoned with Harley-Davidson insignia is being passed from rider to rider all over the world.

The story of how the jacket got its name is that Chief Marketing Officer, Mark-Hans Richer, was wearing the jacket while riding in China and stopped off at the highest place on Road 109 at 16,500 feet above sea level. There it’s customary to paint a symbol to mark reaching the destination. Richer asked a Chinese man to paint something on his jacket; what Harley-Davidson meant to him. The man painted the Chinese characters for Freedom in big red strokes on the jacket. Thus a PR campaign is born. Mad Man Don Draper would be proud.

What does all this mean for HOG shareholders and possible investors? A global spotlight will be shining on this iconic brand of American motorcycles and accessories as the riders wearing the Freedom Jacket and other global events commemorating 110 years hit the media. The stock hit yet another 52 week high on March 8 closing at $54.82 but just barely outperforming the S&P 500 over the last year up only 13.95%. It’s trading at a 20.15 P/E with a 1.60% yield and a PEG of 1.04. Harley-Davidson’s global expansion is exactly why investors should use this spotlight to peer more closely.

From Milwaukee to Market Share Globally

Just this last week Harley-Davidson, Inc. (NYSE:HOG) opened its first dealership in the Philippines. This is just part of its plan for global domination (shades of Pinky and the Brain!) with the company almost two thirds of the way toward accomplishing its 2009 goal of adding 150 dealerships overseas. Harley-Davidson, Inc. (NYSE:HOG) now has 1,400 dealerships outside the US although the majority of sales are American.

The company just announced it would be assembling three of its most popular styles in India: the Heritage Softail Classic and the two Fat Boy models. The benefits are twofold: the rides will cost less for the Indian market, averaging over $27,000 US, and will bypass the country’s 75% import tax for motorcycles of Harley-Davidson, Inc. (NYSE:HOG)’s size.

Harley-Davidson, Inc. (NYSE:HOG) is obviously making an enormous commitment to emerging markets with a product that is decidedly discretionary for consumers in these countries. However, a friend formerly with the State Department mused that Harleys should do very well in the Philippines and other Asian countries where cars are the exception and the culture is accepting of such a sign of conspicuous consumption.

The 30 year old Harley Owners Group has over a million members worldwide as the company reaches out to women, Asians, Latinos, and virtually every group outside of its customer base, Caucasian American men over 35 with incomes over $85,000. For more about Harley-Davidson’s campaign of inclusion and community, click here.

The company reported full year 2012 and Q4 results on January 29 and the uptick in Latin American retail sales was staggering, up 39.2% while globally (excluding US) it was a much more modest 6.3%. Emerging markets were down slightly but the move into India and the Philippines should help full year 2013 sales numbers for emerging markets.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!