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Harley-Davidson (NYSE:HOG) broke higher on Tuesday after D.A. Davidson tipped that recent dealer checks showed U.S. retail sales accelerated during the month of February.
“Our latest checks revealed positive US retail sales growth in February, driven by continued strong demand for HOG’s new MY24 product launch,” updated analyst Brandon Rolle. “Strong underlying MY24 demand and improved product availability of the new MY24 product lineup vs prior years keep dealers optimistic on their retail prospects, he added.
During Harley-Davidson’s (HOG) last earnings call just a few weeks ago (transcript), management had warned about the impact on demand of the economic backdrop and high interest rates. However, the product launch cycle appears to be working in Harley-Davidson’s favor. “I would say the dealer sentiment overall has improved significantly, and that is very much a result of a new product launch, model year launch that excites the network and the dealers and as I had mentioned,” highlighted CFO Chief Financial Officer Jonathan Root.
Shares of Harley-Davidson (HOG) were up 7.95% at 12:39 p.m. to trade at their highest level of 2024. The motorcycle stock is swapping hands comfortably above both the 100-day and 200-day moving averages.
