Harley-Davidson's annual report for 2024 is out. Sadly, its numbers do not look good. The company recorded a 60% drop in motorcycle revenue and sold 53% fewer motorcycles in its last quarter compared to the same period in 2023. Ouch.
Now whether you’re a Harley fan or not is irrelevant. For a company as historic as Harley to experience a slump like this is worrying. Considering how things have gone for KTM since it announced its financial crisis, I’m worried about Harley.
The company sold significantly fewer motorcycles than anticipated. For North America specifically, the final three months of 2024 saw a 13% decline in sales. The reason? Official word cites economic instability and high interest rates. But how is it that other brands like Triumph and MV Agusta are thriving?
In its financial report, Harley-Davidson divides itself into three different business units. There is Harley-Davidson Motor Company (HDMC), which sells combustion-powered bikes (and trikes), parts, and accessories for all of the classics. Harley-Davidson Financial Services (HDFS), which handles financing of the bikes it sells. Last but not least is LiveWire, which encompasses all of its EV offerings, including LiveWire and the children's balancing bike brand Stacyc.
Harley-Davidson Motor Company reported US$420 million in total revenue for the fourth quarter of 2024, down 47% from Q4 of 2023. Oh, by the way, that's a $214 -million operational loss. Livewire, in addition, saw its revenue decline by 32%.
As a whole, Harley-Davidson's 2024 revenue of $5,187 million represents an 11% decrease from 2023. Total operating income for 2024 was $417 million, a 47% decrease from 2023.
What about sales and shipments of motorcycles? According to HDMC, 148,862 motorcycles were shipped by H-D worldwide in 2024. That is a 17% decrease from 2023.
Further, sales were down negative percentages in all four of the geographic regions where HDMC keeps track of sales. Sales in North America fell 13%, those in Europe, the Middle East, and Africa down 7%, those in Asia Pacific fell 26%, and those in Latin America fell 7%.
Harley-Davidson declared last quarter that it would cut back on motorcycle shipments as dealers battle with an overabundance of inventory. Following the release of the recent results, the company's stock price fell 3%.
The company predicts that by the end of 2025, revenues will either stay the same or decline by roughly 5%. Its anticipated earnings per share are no different.
What do you reckon went wrong with Harley-Davidson?
Source: Harley-Davidson
