Harley-Davidson Suffers Big Losses in Latest Earnings Report

Recent months have been less than stellar for Harley-Davidson, with ‘Woke’ accusations made against them before a sizable recall on Low Rider models was announced due to a front brake fault.

But this latest update from the American company might be the most concerning yet as it has confirmed some hefty losses in its third-quarter financial report.

Harley-Davidson has revealed that its sales in the United States have dropped by 10 per cent year-on-year. The company also claimed that its dealers faced a reduction in customer traffic amid higher interest rates and economic uncertainty.

Harley-Davidson's global retail sales have also shrunk by 13 per cent, compared to this time last year, while its motorcycle shipments decreased by 39 per cent. This has contributed to the company’s 32 per cent revenue decline. In addition, Harley-Davidson’s revenue from its parts and accessories unit fell by 6 per cent year-on-year due to customer traffic taking a nosedive, and possibly people tightening their belts.

The company earned a total of $106 million during the quarter, which is a 49 per cent decrease from what it generated during the same time period in 2023.

These are some of the third-quarter losses but looking at 2024 as a whole, Harley-Davidson expects revenue to fall from 14 to 16 per cent. A huge operating loss is expected with its Live Wire sector, which is estimated between $105 to $115 million.

“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."

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