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Harley-Davidson Delivers Third Quarter Financial Results

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Harley-Davidson (NYSE: HOG) reported Q3 2024 results with significant declines across key metrics. The company delivered diluted EPS of $0.91, down 34% year-over-year, while consolidated revenue decreased 26% to $1.15 billion. Operating income fell 49% to $106 million. Global motorcycle shipments dropped 39%, with retail sales down 13% globally and 10% in North America. HDMC revenue declined 32%, though HDFS saw positive performance with operating income up 29%. Due to challenging market conditions, the company lowered its full-year 2024 outlook, now expecting HDMC revenue to decline 14-16% compared to 2023.

Harley-Davidson (NYSE: HOG) ha riportato i risultati del terzo trimestre 2024 con significative flessioni in metriche chiave. L'azienda ha registrato un utile per azione diluito di $0,91, in calo del 34% rispetto all'anno precedente, mentre il fatturato consolidato è diminuito del 26%, raggiungendo $1,15 miliardi. L'utile operativo è sceso del 49% a $106 milioni. Le spedizioni di motociclette a livello globale sono diminuite del 39%, con le vendite al dettaglio in calo del 13% a livello globale e del 10% in Nord America. Il fatturato di HDMC è diminuito del 32%, anche se HDFS ha mostrato una performance positiva con un utile operativo in crescita del 29%. A causa delle difficili condizioni di mercato, l'azienda ha abbassato le sue previsioni per l'intero anno 2024, ora prevedendo una diminuzione del fatturato di HDMC del 14-16% rispetto al 2023.

Harley-Davidson (NYSE: HOG) reportó resultados del tercer trimestre de 2024 con disminuciones significativas en métricas clave. La compañía reportó una utilidad por acción diluida de $0.91, un descenso del 34% en comparación con el año anterior, mientras que los ingresos consolidados disminuyeron un 26% a $1.15 mil millones. Los ingresos operativos cayeron un 49% a $106 millones. Los envíos de motocicletas a nivel mundial cayeron un 39%, con las ventas minoristas disminuyendo un 13% a nivel global y un 10% en Norteamérica. Los ingresos de HDMC cayeron un 32%, aunque HDFS tuvo un rendimiento positivo con un ingreso operativo que aumentó un 29%. Debido a las difíciles condiciones del mercado, la compañía disminuyó su pronóstico para todo el año 2024, esperando ahora que los ingresos de HDMC disminuyan entre un 14% y un 16% en comparación con 2023.

할리 데이비슨 (NYSE: HOG)은 2024년 3분기 결과를 발표하며 주요 지표에서 상당한 감소를 보고했습니다. 회사는 희석 주당 순이익(EPS) $0.91을 기록했으며, 이는 작년 대비 34% 감소한 것입니다. 반면에 통합 수익은 26% 줄어들어 $11.5억 달러에 달했습니다. 운영 소득은 49% 줄어들어 $1.06억 달러가 되었습니다. 전 세계 오토바이 출하는 39% 감소했으며, 소매 판매는 전 세계적으로 13%, 북미에서는 10% 감소했습니다. HDMC 수익은 32% 감소했습니다, 하지만 HDFS는 운영 소득이 29% 증가하며 긍정적인 실적을 보였습니다. 어려운 시장 상황으로 인해, 회사는 2024년 전체 년도 전망을 하향 조정했으며, HDMC 수익이 2023년에 비해 14-16% 감소할 것으로 예상하고 있습니다.

Harley-Davidson (NYSE: HOG) a annoncé des résultats pour le troisième trimestre 2024 avec des baisses significatives dans les indicateurs clés. L'entreprise a enregistré un bénéfice par action dilué de 0,91 $, en baisse de 34 % par rapport à l'année précédente, tandis que le chiffre d'affaires consolidé a diminué de 26 %, atteignant 1,15 milliard de $. Le résultat opérationnel a chuté de 49 %, tombant à 106 millions de $. Les expéditions de motos dans le monde ont baissé de 39 %, avec des ventes au détail en baisse de 13 % à l'échelle mondiale et de 10 % en Amérique du Nord. Le chiffre d'affaires de HDMC a diminué de 32%, bien que HDFS ait montré une performance positive avec un résultat opérationnel en hausse de 29 %. En raison des conditions difficiles du marché, l'entreprise a abaissé ses prévisions pour l'ensemble de l'année 2024, s'attendant maintenant à une baisse des revenus de HDMC de 14 à 16 % par rapport à 2023.

Harley-Davidson (NYSE: HOG) hat die Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit erheblichen Rückgängen in den wichtigsten Kennzahlen. Das Unternehmen verzeichnete einen verwässerten Gewinn pro Aktie von 0,91 $, was einem Rückgang von 34 % im Vergleich zum Vorjahr entspricht, während die konsolidierten Einnahmen um 26 % auf 1,15 Milliarden $ sanken. Das operative Ergebnis fiel um 49 % auf 106 Millionen $. Die weltweiten Motorradlieferungen gingen um 39 % zurück, während die Einzelhandelsverkäufe global um 13 % und in Nordamerika um 10 % zurückgingen. Die Einnahmen von HDMC sanken um 32%, obwohl HDFS eine positive Leistung mit einem Anstieg des operativen Ergebnisses um 29 % erzielte. Aufgrund der schwierigen Marktbedingungen senkte das Unternehmen seine Prognose für das gesamte Jahr 2024 und erwartet nun, dass die Einnahmen von HDMC um 14-16 % im Vergleich zu 2023 zurückgehen werden.

Positive
  • HDFS operating income increased 29% with revenue up 10%
  • U.S. Touring market share increased by 4 points to 75%
  • Apparel revenue grew 13% year-over-year
  • Generated $931 million cash from operating activities YTD
Negative
  • Consolidated revenue declined 26% to $1.15 billion
  • Operating income fell 49% to $106 million
  • Global motorcycle shipments decreased 39%
  • Global retail sales declined 13%, with North America down 10%
  • HDMC operating margin decreased 7.2 points to 6.3%
  • Company lowered full-year 2024 financial outlook
  • Gross margin declined 1.6 points to 30.1%

Insights

The Q3 results reveal significant challenges for Harley-Davidson, with concerning declines across key metrics. Revenue dropped 26% to $1.15 billion, while operating income plunged 49% to $106 million. The motorcycle segment shows particular weakness with shipments down 39% and operating margin compressed to 6.3% from 13.5%.

The bright spot is HDFS (financial services), showing 29% operating income growth and 10% revenue increase. However, this isn't enough to offset the core business decline. The reduced guidance and weak retail sales (-13% globally) suggest continued pressure into 2025, though potential interest rate cuts could provide relief.

The balance sheet remains solid with $2.2 billion cash, but the trajectory of core metrics is concerning. The LiveWire electric segment continues to generate losses while showing minimal revenue.

The market dynamics reveal deeper structural challenges beyond cyclical factors. High interest rates are clearly impacting consumer behavior, particularly in North America where retail sales declined 10%. The international markets show even greater weakness, with EMEA down 23% and Asia Pacific down 16%.

The 75% U.S. Touring market share is impressive, but the segment's overall contraction is concerning. The 13% growth in apparel revenue suggests brand strength remains intact, but core motorcycle sales are struggling to find traction in a challenging macro environment.

MILWAUKEE, Oct. 24, 2024 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or the "Company") (NYSE: HOG) today reported third quarter 2024 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.

Harley-Davidson Financial Services (HDFS) – Results

 

$ in millions

3rd quarter

2024

2023

Change

Revenue

$269

$244

10 %

Operating Income

$77

$59

29 %

HDFS operating income increased by $17 million in the third quarter, or 29 percent. The result was driven by higher interest income and a lower provision for credit losses, partially offset by increased borrowing costs, where operating expenses were largely flat.

LiveWire – Results

 

$ in millions

3rd quarter

2024

2023

Change

Electric Motorcycle Unit Sales

99

50

98 %

Revenue

$5

$8

-41 %

Operating Loss

($26)

($25)

-3 %

LiveWire revenue for the third quarter decreased by 41 percent, due to a decrease in STACYC third party branded distributor volumes. LiveWire's operating loss of $26 million dollars was $1 million more than a year ago, largely in-line with our expectations.   

Other Harley-Davidson, Inc. Results – YTD through end of Q3 2024

  • Generated $931 million of cash from operating activities
  • Effective tax rate was 18 percent
  • Paid cash dividends of $69 million
  • Repurchased $350 million of shares (9.5 million shares) on a discretionary basis
  • Cash and cash equivalents of $2.2 billion at the end of the quarter

2024 Financial Outlook

For the full year 2024, the Company now expects:

  • HDMC: Revenue down 14 to 16 percent compared to 2023
  • HDMC: Operating Income margin between 7.5 and 8.5 percent
  • HDFS: Operating Income up 5 to 10 percent compared to 2023
  • LiveWire: Electric motorcycle unit sales of 600 to 1,000

For the full year 2024 we continue to expect:

  • LiveWire: Operating Loss of $105 to $115 million
  • Harley-Davidson, Inc.: Capital investments of $225 to $250 million

Company Background  
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. Harley-Davidson also has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the United States. LiveWire is the future in the making for the pursuit of urban adventure and beyond. Drawing on its DNA as an agile disruptor from the lineage of Harley-Davidson and capitalizing on a decade of learnings in the EV sector, LiveWire's ambition is to be the most desirable electric motorcycle brand in the world. Learn more at harley-davidson.com and livewire.com.

Webcast
Harley-Davidson will discuss its financial results and outlook on an audio webcast at 8:00 a.m. CDT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CDT.

Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this report are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by reference to this footnote or because the context of the statement will include words such as the Company "believes," "anticipates," "expects," "plans," "may," "will," "estimates," "targets," "intends," "forecasts," "sees," "commits," "assumes," or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this report. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this report are only made as of the date of this report, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company's ability to: (a) execute its business plans and strategies, including The Hardwire, each of the pillars, and the evolution of LiveWire as a standalone brand, which includes the risks noted below; (b) manage supply chain and logistics issues, including quality issues, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Ukraine and the Red Sea conflict, or natural disasters and longer shipping times and increased logistics costs; (c) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests; (d) maintain and enhance the value of the Harley-Davidson brand, including detecting and remediating the impact of social media collective actions, such as boycotts and other brand-damaging behaviors that could harm the Company's brand or business; (e) realize the expected business benefits from LiveWire operating as a separate public company, which may be affected by, among other things: (i) the ability of LiveWire to execute its plans to develop, produce, market and sell its electric vehicles; (ii) the demand for and consumer willingness to adopt two- and three-wheeled electric vehicles; and (iii) other risks and uncertainties indicated in documents filed with the SEC by the Company or LiveWire Group, Inc., including those risks and uncertainties noted in Risk Factors under Item 1.A of LiveWire Group Inc.'s Annual Report on Form 10-K for the year ended December 31, 2023; (f) successfully access the capital and/or credit markets on terms that are acceptable to the Company and within its expectations; (g) successfully carry out its global manufacturing and assembly operations; (h) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the Company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to strengthen and grow its leadership position in Grand American Touring, large Cruiser and Trike, and grow its complementary businesses; (i) perform in a manner that enables the Company to benefit from market opportunities while competing against existing and new competitors; (j) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing domestic and international political environments, including as a result of the conflict in Ukraine and the Red Sea conflict; (k) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (l) prevent, detect and remediate any issues with its motorcycles or any issues associated with the manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (m) successfully manage and reduce costs throughout the business; (n) manage risks related to a resurgence of the COVID-19 pandemic, emergence of a new pandemic, epidemic, disease outbreak or other public health crises, such as supply chain disruptions, its ability to carry out business as usual, and government actions and restrictive measures implemented in response; (o) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods, including the Company's dealer footprint, and manage the risks that its dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (p) successfully appeal: (i) the revocation of the Binding Origin Information (BOI) decisions that allowed the Company to supply its European Union (EU) market with certain of its motorcycles produced at its Thailand operations at a reduced tariff rate and (ii) the denial of the Company's application for temporary relief from the effect of the revocation of the BOI decisions; (q) manage the quality and regulatory non-compliance issues relating to the brake hose assemblies provided to the Company by Proterial Cable America, Inc. in a manner that avoids future quality or non-compliance issues and additional costs or recall expenses that are material; (r) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name in India; (s) manage and predict the impact that new, reinstated or adjusted tariffs may have on the Company's ability to sell products internationally, and the cost of raw materials and components, including the temporary lifting of the incremental tariffs on motorcycles imported into the EU from the U.S., which was extended to March 31, 2025; (t) accurately predict the margins of its segments in light of, among other things, tariffs, inflation, foreign currency exchange rates, the cost associated with product development initiatives and the Company's complex global supply chain; (u) successfully maintain a manner in which to sell motorcycles in China and the Company's Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (v) manage its Thailand corporate and manufacturing operation in a manner that allows the Company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (w) retain and attract talented employees, and eliminate personnel duplication, inefficiencies and complexity throughout the organization; (x) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (y) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services' loan portfolio; (z) prevent a ransomware attack or cybersecurity breach involving consumer, employee, dealer, supplier, or Company data and respond to evolving regulatory requirements regarding cybersecurity and data privacy; (aa) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the Company's business; (bb) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (cc) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (dd) manage changes, prepare for, and respond to evolving requirements in legislative and regulatory environments related to its products, services and operations, including increased environmental, safety, emissions or other regulations; (ee) manage its exposure to product liability claims in a manner that avoids future substantial jury verdicts in pattern litigation cases, including the successful appeal of the verdict in Morris v. H-D, and manage exposure in commercial or contractual disputes; (ff) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (gg) achieve anticipated results with respect to the Company's preowned motorcycle program, Harley-Davidson Certified, the Company's H-D1 Marketplace, and Apparel and Licensing; and (hh) optimize capital allocation in light of the Company's capital allocation priorities.

The Company's ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company's dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company's dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, or other factors.

HDFS' retail credit losses have normalized in recent quarters to higher levels after a period of historically low levels of credit losses. Further, the Company believes that HDFS's retail credit losses will continue to change over time due to changing consumer credit behavior, macroeconomic conditions, including the impact of inflation and HDFS's efforts to increase prudently structured loan approvals to sub-prime borrowers. In addition, HDFS's efforts to adjust underwriting criteria based on market and economic conditions and the actions that the Company has taken and could take that impact motorcycle values may impact HDFS's retail credit losses.

The Company's operations, demand for its products, and its liquidity could be adversely impacted by work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities, including the conflict in Ukraine and the Red Sea conflict, or other factors. Refer to Risk Factors under Item 1.A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and applicable updates under Item 1.A of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

### (HOG-Earnings)

Harley-Davidson, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)












Three months ended


Nine months ended



September 30,


September 30,


September 30,


September 30,



2024


2023


2024


2023










HDMC revenue


$       876,405


$     1,296,981


$     3,701,417


$     4,052,946

Gross profit


263,813


410,690


1,158,010


1,385,190

Selling, administrative and engineering expense


208,676


235,437


666,522


679,864

  Operating income from HDMC


55,137


175,253


491,488


705,326










LiveWire revenue


4,808


8,144


15,958


22,932

Gross (loss) profit


(1,180)


1,092


(6,907)


(584)

Selling, administrative and engineering expense


24,905


26,435


76,587


81,290

  Operating loss from Livewire


(26,085)


(25,343)


(83,494)


(81,874)










HDFS revenue


269,482


243,934


781,818


707,390

HDFS expense


192,738


184,559


579,836


530,610

  Operating income from HDFS


76,744


59,375


201,982


176,780










Operating income


105,796


209,285


609,976


800,232

Other income, net


18,408


26,814


54,851


54,136

Investment income


16,450


9,868


45,665


31,044

Interest expense


(7,707)


(7,688)


(23,066)


(23,104)

Income before income taxes


132,947


238,279


687,426


862,308

Income tax provision


16,980


42,176


123,821


190,546

Net income


$       115,967


$        196,103


$        563,605


$        671,762

Less: Loss attributable to noncontrolling interests


3,073


2,546


8,644


9,016

Net income attributable to Harley-Davidson, Inc. 


$       119,040


$        198,649


$        572,249


$        680,778










Earnings per share:









  Basic


$              0.92


$               1.40


$               4.30


$               4.74

  Diluted


$              0.91


$               1.38


$               4.27


$               4.65










Weighted-average shares:









  Basic


130,078


141,622


133,187


143,678

  Diluted


130,963


144,321


133,985


146,330










Cash dividends per share:


$         0.1725


$           0.1650


$           0.5175


$           0.4950




LiveWire results presented in the Company's financial statements represent the LiveWire reportable segment as determined in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280 Segment Reporting which may differ from LiveWire Group, Inc. results.

 

Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets

(In thousands)














(Unaudited)




(Unaudited)





September 30,


December 31,


September 30,





2024


2023


2023

ASSETS









Current assets:









    Cash and cash equivalents




2,243,910


1,533,806


1,878,351

    Accounts receivable, net




307,701


267,200


315,331

    Finance receivables, net




2,300,551


2,113,729


2,101,965

    Inventories, net




681,864


929,951


768,765

    Restricted cash




147,910


104,642


130,838

    Other current assets




208,000


214,401


227,556





5,889,936


5,163,729


5,422,806










Finance receivables, net




5,499,836


5,384,536


5,553,259

Other long-term assets




1,636,887


1,592,289


1,486,151





$   13,026,659


$   12,140,554


$   12,462,216










LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities:









    Accounts payable and accrued liabilities




$        931,971


$        996,021


$        968,261

    Short-term deposits, net




178,638


253,309


250,987

    Short-term debt




497,373


878,935


815,081

    Current portion of long-term debt, net




2,561,535


1,255,999


638,496





4,169,517


3,384,264


2,672,825










Long-term debt, net




4,739,507


4,990,586


5,856,005

Other long-term liabilities




692,523


513,409


622,116










Shareholders' equity




3,425,112


3,252,295


3,311,270





$   13,026,659


$   12,140,554


$   12,462,216

 










Harley-Davidson, Inc.

Condensed Consolidated Statements of Cash Flows

 (In thousands)

(Unaudited)
















Nine months ended







September 30,


September 30,







2024


2023










Net cash provided by operating activities






$        930,655


$        706,767










Cash flows from investing activities:









  Capital expenditures






(140,424)


(138,902)

  Finance receivables, net






(345,588)


(373,109)

  Other investing activities






(165)


878

Net cash used by investing activities






(486,177)


(511,133)










Cash flows from financing activities:









  Proceeds from issuance of medium-term notes






495,856


1,446,304

  Repayments of medium-term notes






-


(1,056,680)

  Proceeds from securitization debt






1,145,211


1,045,547

  Repayments of securitization debt






(782,161)


(930,608)

  Net (decrease) increase in unsecured commercial paper






(387,392)


43,523

  Borrowings of asset-backed commercial paper






366,171


42,429

  Repayments of asset-backed commercial paper






(195,709)


(187,599)

  Net increase in deposits






100,737


161,157

  Dividends paid






(69,454)


(72,775)

  Repurchase of common stock






(359,810)


(239,428)

  Other financing activities






11


1,706

Net cash provided by financing activities






313,460


253,576










Effect of exchange rate changes on cash, cash equivalents and restricted cash




198


(8,415)










Net increase in cash, cash equivalents and restricted cash






$        758,136


$        440,795










Cash, cash equivalents and restricted cash:









Cash, cash equivalents and restricted cash, beginning of period






$     1,648,811


$     1,579,177

Net increase in cash, cash equivalents and restricted cash






758,136


440,795

Cash, cash equivalents and restricted cash, end of period






$     2,406,947


$     2,019,972










Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance
sheets to the Consolidated statements of cash flows: 






  Cash and cash equivalents






$     2,243,910


$     1,878,351

  Restricted cash






147,910


130,838

  Restricted cash included in Other long-term assets






15,127


10,783

  Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows



$     2,406,947


$     2,019,972

 










HDMC Revenue and Motorcycle Shipment Data

(Unaudited)












Three months ended


Nine months ended



September 30,


September 30,


September 30,


September 30,



2024


2023


2024


2023

HDMC REVENUE (in thousands)









  Motorcycles


$       615,628


$     1,023,090


$     2,905,861


$     3,216,387

  Parts and accessories


174,301


184,809


534,359


568,001

  Apparel


55,688


49,325


183,192


187,072

  Licensing


3,897


9,586


18,312


20,912

  Other


26,891


30,171


59,693


60,574



$       876,405


$     1,296,981


$     3,701,417


$     4,052,946










HDMC U.S. MOTORCYCLE SHIPMENTS


15,850


30,167


89,761


96,984










HDMC WORLDWIDE MOTORCYCLE SHIPMENTS









    Grand American Touring(a)


15,493


23,781


80,194


76,270

    Cruiser


9,610


17,142


39,711


53,876

    Sport and Lightweight


1,770


3,103


10,827


15,849

    Adventure Touring


647


1,243


4,120


4,445



27,520


45,269


134,852


150,440

(a) Includes Trike


















LiveWire Motorcycle Shipments


99


50


374


146

 

HDMC Gross Profit

(Unaudited)










The estimated impact of significant factors affecting the comparability of gross profit from the third quarter of 2023 to the third quarter of 2024
were as follows (in millions):












 Three months ended 




Nine months ended



2023 gross profit


$               411




$             1,385



Volume


(145)




(135)



Price and sales incentives


19




(73)



Foreign currency exchange rates and hedging


18




(1)



Shipment mix


(33)




25



Raw material prices


3




12



Manufacturing and other costs


(9)




(55)





(147)




(227)



2024 gross profit


$               264




$             1,158












 

HDFS Finance Receivables Allowance for Credit Losses

(Unaudited)












Three months ended


Nine months ended



September 30,


September 30,


September 30,


September 30,



2024


2023


2024


2023

Balance, beginning of period


$       393,517


$        381,780


$        381,966


$        358,711

Provision for credit losses


57,977


60,854


175,017


170,496

Charge-offs, net of recoveries


(51,582)


(49,920)


(157,071)


(136,493)

Balance, end of period


$       399,912


$        392,714


$        399,912


$        392,714










 

Worldwide Retail Sales of Harley-Davidson Motorcycles(a)

(Unaudited)












Three months ended


Nine months ended



September 30,


September 30,


September 30,


September 30,



2024


2023


2024


2023










United States


22,726


25,336


80,710


81,774

Canada


1,847


2,010


6,186


6,653

Total North America


24,573


27,346


86,896


88,427

EMEA


6,054


7,847


19,333


21,884

Asia Pacific


4,832


5,784


17,188


20,190

Latin America


707


681


2,152


2,108

      Total worldwide retail sales


36,166


41,658


125,569


132,609



(a)

Data source for retail sales figures shown above is new sales warranty and registration information provided by dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision. 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/harley-davidson-delivers-third-quarter-financial-results-302285546.html

SOURCE Harley-Davidson, Inc.

FAQ

What was Harley-Davidson's (HOG) EPS in Q3 2024?

Harley-Davidson reported diluted EPS of $0.91 in Q3 2024, down 34% from $1.38 in Q3 2023.

How much did Harley-Davidson's (HOG) motorcycle shipments decline in Q3 2024?

Global motorcycle shipments decreased by 39% in Q3 2024, from 45,300 to 27,500 units.

What is Harley-Davidson's (HOG) revised revenue outlook for 2024?

Harley-Davidson revised its HDMC revenue outlook for 2024, expecting a decline of 14-16% compared to 2023.

How did Harley-Davidson's (HOG) North American retail sales perform in Q3 2024?

Harley-Davidson's North American retail sales decreased by 10% in Q3 2024 compared to the previous year.

Harley-Davidson, Inc.

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