## Harley-Davidson Navigates Tough Terrain: Q3 2024 Results Reveal Sales Decline Amidst Economic Headwinds
Harley-Davidson, Inc. (HOG) today reported its third-quarter 2024 financial results, revealing a challenging landscape marked by declining sales and a softening global market. Despite navigating these headwinds, the iconic motorcycle manufacturer remains optimistic about its future, citing strong reception for its new touring models and anticipating a more favorable economic environment in 2025.
The company acknowledged the impact of high interest rates, macroeconomic uncertainty, and political volatility, factors that continue to weigh on the motorcycle industry and consumer spending, particularly in core markets. “We have worked diligently through the quarter to mitigate the impact of these challenges,” said Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson. “We are pleased with the reception of our touring launch and are working hard to position the Company for a solid 2025. We are optimistic about making sound progress in the new year, with expectations for further interest rate reductions and improved consumer confidence to provide a much-needed boost to the industry.”
Key Highlights from the Third Quarter 2024:
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Diluted EPS of $0.91:
This represents a 34% decrease compared to the same period last year.*
Consolidated operating income of $106 million:
This reflects a 49% year-over-year decline.*
North American retail sales down 10%:
Dealers observed a slowdown in customer traffic due to the higher interest rate environment and broader economic concerns.*
Global retail sales down 13%:
International markets, particularly EMEA and Asia Pacific, performed weaker than anticipated.*
HDMC gross margin of 30.1%:
This reflects a decrease from the previous year, attributed to lower volumes, negative operating leverage, and less favorable motorcycle mix.*
HDFS operating income up 29%:
This increase was driven by higher interest income and a lower provision for credit losses.Looking Ahead:
Despite the challenges faced in the third quarter, Harley-Davidson has adjusted its full-year 2024 financial outlook to reflect the current environment, anticipating:
*
HDMC revenue down 14 to 16% compared to 2023.
*
HDMC operating income margin between 7.5 and 8.5%.
*
HDFS operating income up 5 to 10% compared to 2023.
*
LiveWire electric motorcycle unit sales of 600 to 1,000.
Harley-Davidson remains committed to its vision of building its legend and leading the industry through innovation, evolution, and emotion. The company’s focus on strengthening its position in the Grand American Touring, large Cruiser, and Trike segments, along with the continued development of its complementary businesses, signals its determination to navigate these economic headwinds and emerge as a leader in the motorcycle market.
The company’s webcast discussing its financial results and outlook can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations.
