Posts Tagged ‘Wells Fargo’

Retailing Questions Continue for Powersports

October 4, 2010

Wells Fargo Consumer Conference

There wasn’t much to excite investors at the recent two-day consumer conference held by Wells Fargo Securities, according to a report issued by the company last week. The conference was held Sept. 29-30 in New York, but there were not many powersports companies among the 64 firm that gave presentations to the analysts. Perhaps the best known powersports participants were Arctic Cat and Brunswick. Other related companies included International Speedway Corp., Penske Automotive, Tractor Supply, Marine Products, and U.S. Auto Parts Network.

Several trends ran through the presentations, according to reports compiled by attending analysts. These include: A continuing major shift to online marketing in a number of forms; personalized marketing is growing, using the Internet and social media to drive sales at online and bricks and mortar sites; increased sourcing costs which could put pressure on margins even though many companies are operating in a more efficient manner, and holiday inventories seem to be in good shape.

“Powersports retail sales visibility likely will be clouded until the beginning of seasonal sales in March,”  Senior analyst Tim Conder wrote in his conference summary report. Near-term price movements of powersports stocks most likely will be tied to general economic activities, he wrote. In his conclusion about the leisure segment, Conder says he likes certain toy companies, followed by cruise lines and powersports companies. Not a real strong recommendation.

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Harley Posts Big 4Q 2009 Loss

January 22, 2010

Harley-Davidson lost $147.2 million from continuing operations in 4Q 2009 on revenue of $764.5 million. For the year, it earned $70.6 million from contining operations on revenues of $4.29 billion. Full year income from operations was down 89.4% from the $684.2 million it earned in 2008. 4Q shipments were down 53.1% from 4Q 2008. For the full year 2009, revenue from Harley-Davidson motorcycles was $3.17 billion compared to $4.24 billion in 2008 on shipments of 223,023 Harley-Davidson motorcycles, compared to 303,479 motorcycles in 2008.

Tim Conder, a senior analyst with Wells Fargo Securities, notes that Q4 is the seasonally weakest at retail and is subject to the largest year over year percentage swings. He also noted today that Harley’s planned shipments this year of 201,000 to 212,000 units, down 5%-10%, were below expectations of analysts who follow the company. Analysts thought shipments this year would be about flat.

Conder said that Harley’s U.S./global sell-through was worse than his expectations. U.S. retail sales for Harley motorcycles were 162,385 units. JD

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