“Coming off a negative U.S. retail sales trend in the
first six months of the year, we ran an effective promotion in July that
increased retail sales and reduced inventories of 2007 model motorcycles.
However, our U.S. dealers’ retail sales have fallen sharply during August.”
With that, shares of Harley Davidson (HOG) dropped 10% last friday to below $50 a shares, 23% down this year and 28% below their high last year.

HOG now expects a modest decline in revenue for 2007. Diluted earnings per share (EPS) for the full year 2007 are expected to be down 4 to 6 percent, in the range of $3.69 – $3.77, compared to 2006 EPS of $3.93.