- Harley-Davidson Inc HOG reported a second-quarter FY22 consolidated revenue decline of 4% year-on-year to $1.47 billion, driven primarily by HDMC revenue down 5%.
- Revenue from the Motorcycles and Related Products segment (HDMC) fell 5% to $1.27 billion, beating the consensus of $1.24 billion.
- The revenue decline was driven by the production suspension in the second half of May.
- Related: Harley-Davidson Suspends Motorcycle Production, Shipping For Two Weeks
- Harley-Davidson's EPS of $1.46 beat the consensus of $1.12.
- Revenue from Motorcycles fell 9%, Parts & Accessories dropped 4%, Apparel climbed 39%, and Licensing rose 33%.
- The gross profit margin in HDMC remained flat Y/Y at 30.5%. Selling, administrative, and engineering expenses declined 11% Y/Y to $195.3 million.
- Operating income fell 1% Y/Y to $278 million. Operating income from HDMC grew 3% Y/Y to $192 million.
- Harley-Davidson generated $244 million in cash from operating activities year-to-date. It held cash and equivalents of $2.2 billion as of June 26, 2022.
- "Now with the suspension being behind us, we are fully focused on mitigating the impacts of the volume loss with the ambition to deliver on our Hardwire II goals, in year two of our five-year strategy," said CEO Jochen Zeitz.
- The merger transaction between LiveWire and AEA-Bridges Impact is now expected to list on the NYSE in late September.
- Outlook: Harley-Davidson reaffirmed its initial guidance and expects FY22 HDMC sales growth of 5% - 10%, HDMC operating income margin of 11% - 12%, HDFS operating income to decline by 20% - 25%.
- Price Action: HOG shares are trading higher by 5.69% at $36.25 in premarket on the last check Thursday.
- Photo Via Wikimedia Commons
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