Harley-Davidson Struggles With Sales Drop In Q4, But New Touring Models Boost Market Share

Zinger Key Points

Harley-Davidson's Q4 revenue fell 34.7% to $687.61M, missing estimates, as motorcycle sales dropped across key global markets.
CEO Jochen Zeitz cited high interest rates impacting demand, but new touring models boosted U.S. market share to 74.5% in 2024.
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Harley-Davidson Inc HOG reported fourth-quarter 2024 financial results. It clocked HDMC and LiveWire’s combined revenue of $430.89 million.

Consolidated revenue declined by 34.7% to $687.61 million.

The analyst consensus estimate was $464.88 million. Harley-Davidson’s EPS loss of 93 cents missed the analyst consensus of 66 cents.

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The consolidated revenue decline was driven primarily by HDMC’s 47% revenue fall, which was partially offset by HDFS’s 4% revenue increase.

The stock price slid after the print.

Global retail motorcycle sales declined 15%, and North American retail performance was down 13%. The bulk of the declines were in the large cruiser category, which includes the Softail motorcycle.

In EMEA, retail sales declined by 7%, driven by weakness in Germany and the surrounding region. The 26% decline in APAC was driven by weakness in Japan and China, partially offset by growth in Australia and New Zealand. Latin America sales decreased by 7%, driven by Brazil and Mexico’s decline.

Operating loss in HDMC was $214 million versus a loss of $44 million Y/Y.

Consolidated operating loss for the quarter was $193.35 million versus $21.15 million Y/Y.

Harley-Davidson generated $1.06 billion in operating cash flow during the year and held cash of $1.16 billion at year-end.

CEO Jochen Zeitz flagged a significant impact from continued cyclical headwinds for discretionary products, including the high interest rate environment affecting consumer confidence. Launching its new Street Glide and Road Glide touring motorcycles contributed to nearly 5% growth in the U.S. Touring segment and drove the company’s market share to 74.5% in fiscal 2024.

FY25 Outlook: Harley-Davidson expects HDMC revenue growth to be flat, down 5%, and operating income margin outlook to be 7.0%-8.0%.

Harley-Davidson expects a capital investment of $225 million-$250 million.

Price Action: HOG stock is down by 4.38% at $25.65 at last check Tuesday.

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