Q3 2024 Harley-Davidson Inc Earnings Call Transcript
Key Points
- Harley-Davidson Inc (HOG) gained more than 4 percentage points of market share in the US touring segment, outperforming the category and the market as a whole.
- The company continues to see greater spending from higher-income customers, with CVO motorcycles up double-digit percentages throughout the year.
- Harley-Davidson Financial Services (HDFS) reported a strong performance with a 10% revenue growth driven by higher retail and commercial finance receivables.
- Despite challenges, Harley-Davidson Inc (HOG) is enthusiastic about its new lineup of touring motorcycles, which received outstanding feedback from customers and media.
- The company is committed to reducing dealer inventory levels, which were down 13% relative to the end of Q2, to support dealer health and prepare for the 2025 model year launch.
- Global retail sales of new motorcycles declined by 13% in Q3, with North America down 10% and international regions down 18%.
- Consolidated revenue in the third quarter was down 26%, driven by a 32% decrease in HDMC revenue.
- The operating income margin for Harley-Davidson Inc (HOG) decreased to 9.2% from 13.5% in the prior year period.
- LiveWire's retail sales outpaced wholesale for a third consecutive quarter but still fell short of expectations, leading to a revised full-year guidance.
- The company revised its full-year 2024 outlook downward due to lower-than-expected retail demand, with expected retail and wholesale units now in the range of 149,000 to 153,000.
Thank you for standing by, and welcome to the Harley-Davidson 2024 third-quarter investor and analyst conference call. Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Shawn Collins. Thank you. Please go ahead.
Thank you. Good morning. This is Shawn Collins, the Director of Investor Relations at Harley-Davidson. You can access the slides supporting today's call on the internet at the Harley-Davidson Investor Relations website.
As you might expect, our comments will include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted in today's earnings release and in our latest filings with the SEC.
Joining me for this morning's call are Harley-Davidson Chief Executive Officer, Jochen Zeitz; also, Chief Financial Officer, Jonathan Root. And we have LiveWire's Chief Executive Officer, Karim Donnez.
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