Harley a Victim of Hog-Wild Demand

The Milwaukee-based motorcycle and accessory manufacturer can’t keep up with dealer demand for its machines, affectionately called “hogs.” This means dealers can’t attract customers into the showroom to buy its motorcycle apparel and other accessories.

As a result of this and a sluggish overall apparel sales environment, Harley-Davidson Inc. said, its high-margin apparel shipments are expected to be down 20% in the third quarter.

That sent shareholders zooming for the off-ramp Friday, with the stock falling $4.375 to $25.375 while analysts cut their ratings and earnings estimates for the company, which had sales of $1.5 billion in 1994.

Dean Witter Reynolds analyst Ronald Glantz thought the stock market overreacted, adding that the slowdown in apparel sales is “a hiccup.”