With a Q4 exit from 2024 that was so excruciatingly lamentable that its best left unmentioned, Harley-Davidson’s annualised woes went from bad to worse. BDN financial editor Roger Willis reports.
Basic full-year figures from the core Harley-Davidson Incorporated entity were as follows. Overall revenue was 11.1% down to £4.116bn. Combined operating profit from various activity sectors plunged by 46.5% to £330.8m. Net income attributable to HD Inc shrivelled by 35.6% to £361.6m.
Within those bare bones, the Harley-Davidson Motor Company (HDMC), responsible for making and marketing motorcycles, plus a host of associated products, apparel, etc, and licensing functions, suffered a 14.9% revenue decline to £3.272bn. HDMC’s operating profit also dived by an even more hard-edged 58% to a mere £220.6m. Worldwide HDMC motorcycle shipments to dealers and distributors during the year fell by 17.3% to 148,862.
Harley’s floundering LiveWire electric steed spin-off booked revenue of only £20.9m, a 31.2% slump, and declared an operating loss of £87m – improving slightly from the £92.7m loss in 2023. However, LiveWire shipment volume dropped by 7.3% to just 612 units over 12 months.
A modicum of light relief came from Harley-Davidson Financial Services (HDFS), which majors on consumer credit and dealer inventory funding. HDFS revenue rose by 8.9% to £824.6m, driven primarily by elevated interest rate income. Despite higher borrowing costs, an increased provision for credit losses and greater operating expenses, its operating profit grew by 5.8% to £192.2m.
Harley’s global retail motorcycle sales in 2024 weren’t a pretty picture, 7.1% down year-on-year to 151,229 units. North America, combining the adjacent US and Canadian markets, fell by 3.7% to 102,023. The EMEA region – essentially European countries with relatively small numbers of bikes also sold in the Middle East and South Africa – sank by 10.8% to 24,082, now just a shadow of its past glory. The Asia-Pacific region retreated by 17.6% to 22,213. Presumably, the big badge-engineered volume of single-cylinder bikes churned out by Hero MotoCorp under license in India aren’t counted as “real” Hogs. Finally, Latin American consumers only managed to buy 2911, twelve fewer than in the previous year.
Inevitably, Harley-Davidson chairman and chief executive Jochen Zeitz piled in with almost plausible excuses. “In 2024, we saw our performance significantly impacted by the continuing cyclical headwinds for discretionary products, including the high-interest rate environment,” he complained. “The decisions we have made and the bold actions we have taken as part of our Hardwire strategy are continuing to strengthen our foundation for the future. The industry has faced many challenges over the past couple of years, impacting at all levels, but we believe we are best positioned to take advantage of any uptick in consumption.”
Unfortunately, such a posture doesn’t quite hang together with his 2025 financial outlook forecast, which predicts HDMC revenue flat or 5% down and HDFS operating profit down by 10% to 15%.
$-£ currency translation at forex rates applicable on 17 February