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Harley-Davidson Delivers Third Quarter Financial Results
“We have worked diligently through the quarter to mitigate the impact of high interest rates, and macroeconomic and political uncertainty, that continue to put pressure on our industry and customers, especially in our core markets,” said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson. “We are very pleased with the reception of our touring launch with customers and dealers alike and are working hard to set the Company up for a solid 2025. We are optimistic about our ability to make sound progress in the new year, and we are expecting further interest rate reductions and improved consumer confidence will provide the industry with a needed tailwind.”
Third Quarter 2024 Highlights and Related Results
- Delivered diluted EPS of $0.91
- Consolidated operating income of $106 million, down 49 percent in Q3 year-over-year
- North American retail sales down 10 percent in Q3 versus prior year
- Global retail sales down 13 percent in Q3 year-over-year, where international markets have performed weaker than expected
- HDMC gross margin of 30.1 percent in Q3
- HDFS operating income up 29 percent in Q3 year-over-year, while revenue up 10 percent
- Company lowers its full year 2024 financial outlook to reflect the current environment
Year-to-date 2024 Highlights and Related Results
- Delivered diluted EPS of $4.27
- Consolidated operating income of $610 million, down 24 percent year-over-year
- North American retail sales down 1.7 percent versus prior year
- Global retail sales down 5 percent year-over-year
- HDMC gross margin of 31.3 percent
- HDFS operating income up 14 percent year-over-year, while revenue up 11 percent
- U.S. Touring market share of 75 percent, an increase of 4 share points year-over-year1
| 1 | Source: U.S. 601+cc Street Legal Market Share for 2024 year-to-date from Motorcycle Industry Council (MIC). |
Third Quarter 2024 Results
Harley-Davidson, Inc. Consolidated Financial Results
| $ in millions (except EPS) | 3rd quarter | ||
| 2024 | 2023 | Change | |
| Revenue | $1,151 | $1,549 | -26 % |
| Operating Income | $106 | $209 | -49 % |
| Net Income Attributable to HDI | $119 | $199 | -40 % |
| Diluted EPS | $0.91 | $1.38 | -34 % |
Consolidated revenue in the third quarter was down 26 percent, driven primarily by an HDMC revenue decline of 32 percent, and partially offset by an HDFS revenue increase of 10 percent.
Consolidated operating income in the third quarter was $106 million, down 49 percent from prior year period. The result was driven primarily by an HDMC operating income decline of 69 percent, partially offset by an HDFS operating income increase of 29 percent, and a LiveWire operating loss in-line with our expectations. Consolidated operating income margin in the third quarter was 9.2 percent, which compares to 13.5 percent in the third quarter a year ago.
Harley-Davidson Motor Company (HDMC) – Results
| $ in millions | 3rd quarter | ||
| 2024 | 2023 | Change | |
| Motorcycle Shipments (thousands) | 27.5 | 45.3 | -39 % |
| Revenue | $876 | $1,297 | -32 % |
| Motorcycles | $616 | $1,023 | -40 % |
| Parts & Accessories | $174 | $185 | -6 % |
| Apparel | $56 | $49 | 13 % |
| Licensing | $4 | $10 | -59 % |
| Other | $27 | $30 | -11 % |
| Gross Margin | 30.1 % | 31.7 % | -1.6 pts. |
| Operating Income | $55 | $175 | -69 % |
| Operating Margin | 6.3 % | 13.5 % | -7.2 pts. |
Third quarter global motorcycle shipments decreased by 39 percent, as dealers adjust inventory levels for the current retail environment. HDMC revenue was down 32 percent, driven primarily by the significant reduction in wholesale units shipped. Parts & Accessories revenue was down 6 percent due to lower customer traffic than prior year. Apparel revenue was up 13 percent.
Third quarter gross margin was down 1.6 points due to the impacts of lower volumes, negative operating leverage, and less favorable motorcycle mix, partially offset by favorable net pricing, favorable foreign exchange and lower raw material and supply chain management costs. Third quarter operating margin was 6.3 percent, where operating expenses were down 11 percent in the period but offset by the larger decline in revenue at HDMC, resulting in 7.2 points of operating margin decline.
Harley-Davidson Retail Motorcycle Sales
| Motorcycles (thousands) | 3rd quarter | ||
| 2024 | 2023 | Change | |
| North America | 24.6 | 27.3 | -10 % |
| EMEA | 6.1 | 7.8 | -23 % |
| Asia Pacific | 4.8 | 5.8 | -16 % |
| Latin America | 0.7 | 0.7 | 4 % |
| Worldwide Total | 36.2 | 41.7 | -13 % |
Global retail motorcycle sales in the third quarter were down 13 percent versus prior year. North American retail performance was down 10 percent, as dealers observed a slowdown in customer traffic in the region, as customers assessed the higher interest rate environment and macro uncertainty. U.S. retail performance was down 1 percent in the nine-month YTD period year-over-year.
International markets have performed weaker than we expected, down 18 percent in the third quarter versus prior year. In EMEA, third quarter retail sales declined by 23 percent, with mixed performance on a country-by-country basis. In APAC, third quarter retail sales declined by 16 percent, with Japan softer than we expected and Australia & New Zealand experiencing growth. Latin America was largely flat. International retail sales were down 12 percent in the nine-month YTD period year-over-year.
