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Harley-Davidson’s motorcycle unit is skidding dangerously, but its teddy bear business has already crashed.
On Tuesday morning, the company posted a quarterly update that was dismal all around. Perhaps most alarming, however, was a 17 percent drop in revenue from general merchandise, a sales slump that outpaced declines in dollars derived from bikes, parts, and financing. Souvenir sales were even worse in the first quarter when it recorded a 21 percent drop in merch revenue. The company that rides on the strength of its brand appears to be moving far less apparel, jewelry, and do-rags than it has in the past.