XPost: rec.motorcycles, rec.motorcycles.harley, alt.business
XPost: talk.politics.guns, sac.politics

https://www.thestreet.com/automotive/harley-davidson-suffers-weak-sales- after-controversial-change#

The motorcycle company reveals a bleak outlook on its future after
facing major headwinds during the quarter.

Over the past few months, Harley-Davidson (HOG) has faced some
significant setbacks in its business after it made a controversial
decision that drew both praise and scrutiny from its consumers.

The iconic motorcycle company recently unveiled its third-quarter
earnings report for 2024. Sales took an unexpected dip, causing the
company to provide a grim outlook on its future.

In the report, Harley-Davidson revealed that its sales in the U.S.
declined by 10% year-over-year. The company claimed that its dealers
faced ôa slowdown in customer traffic in the regionö amid higher
interest rates and economic uncertainty.

Harley-Davidson's global retail sales also shrunk by 13%, compared to
the same time period in 2023, as its motorcycle shipments decreased by
39%. This contributed to the companyÆs 32% consolidated revenue decline.
In addition, Harley-DavidsonÆs revenue from its parts and accessories
unit fell by 6% year-over-year due to ôlower customer traffic.ö

Despite the declines in its core business, the company managed to
increase its apparel revenue by 13% year-over-year.

Harley-DavidsonÆs operating income, which is a companyÆs profit after
expenses, also took a major hit. The company earned only $106 million
during the quarter, a 49% decrease from what it generated during the
same time period in 2023.

"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 Harley-Davidson CEO Jochen Zeitz in the report.

Currently, the Federal Reserve interest rate is set at a target range of
4.75% to 5%. The Fed cut the rate by 0.50 percentage points at its Sept.
17û18 meeting to relieve pressure on the economy, the first decrease in
four years. As a result, borrowers will encounter lower loan rates,
which could positively impact future Harley-Davidson motorcycle sales.

Harley-Davidson reveals grim outlook on future sales
The recent headwinds prompted Harley-Davidson to lower the expectations
on sales and global shipments in its full-year 2024 outlook.

The company now expects its retail sales to decline by 6% to 8%,
compared to its previous prediction of sales remaining either stagnant
or increasing by 3%. It also now expects its wholesale shipments to be
down by 16% to 17%, after previously expecting it to only decline by 7%
to 10%.

Harley-Davidson also now predicts that its revenue will shrink by 14% to
16% for the full year, compared to the previous expectation that it
would decline by 5% to 9%.

ôWe believe these reductions position the company more appropriately for
2025,ö said Harley-Davidson Chief Financial Officer Jonathan Root during
an Oct. 24 earnings call.

Harley shares started to show signs of recovery Monday, climbing 3.75%,
trading above $33 per share after dropping as low as $31.65 in the wake
of its earnings report.

Harley-Davidson recently faced controversy for going 'woke'
Harley-DavidsonÆs disappointing third-quarter performance comes after
its customers recently held its feet to the fire over its supposed
ôwokeö policies.

In July, conservative activist Robby Starbuck, took to social media
platform X to accuse the company of having a ôtotal commitmentö to
diversity, equity and inclusion, or DEI.

Starbuck alleged that the company supports a plethora of LGBTQ-based
policies, events and training for its employees. He also claimed that
the companyÆs CEO signed the CEO Action for Diversity & Inclusion Pledge
and that Harley-Davidson is ôopenly working to have fewer White
suppliers, dealers and employees.ö

StarbuckÆs post went viral on X, garnering almost 3 million views, and
many consumers threatened to boycott the motorcycle company for
supporting these initiatives.

On Aug. 19, Harley-Davidson finally responded to the backlash by
clarifying that it quietly cut its ôDEI functionö in April and that it
will adjust several of its policies going forward.

This includes ensuring that its business resource groups ôexclusively
focus on professional development, networking, and mentoring.ö The
company will also remove ôsocially motivated contentö from its employee training, while its sponsorships and affiliations will be under ôreviewö
and will only be approved and managed by the company or its foundation.

ôWe remain committed to listening to all members of our community as we continue on our journey together as one Harley-Davidson. United We
Ride,ö said Harley-Davidson in a statement on X.

The changes from Harley-Davidson drew mixed reactions from consumers who
both praised and criticized the decision.

https://pbs.twimg.com/media/GVW0fVFXAAE_tCM?format=jpg&name=small

Conversation

utfan1963
29 October, 2024
Harley brought this on themselves with their woke policies. People like
me will never step foot on a Harley property until this woke board, and
their DEI policies are completely gone from the company. I have found an independent mechanic. All my service work used to be done by Harley.
Obviously their actions have affected their bottom line, and their
stocks as well.

DuaineCubitt
29 October, 2024
I own a 02 Softail have for 10 years. I will be selling this fall and
getting an Indian I have always been proud of my bike. Now HD all woke
I don't want anything to do with. Plus building overseas. This is an
American company. GOOD LUCK

FlaChris
30 October, 2024
Deceptive headline... weak sales did NOT occur because of the change to
DEI policies at Harley-Davidson (HD). The weak sales occurred BECAUSE
of the DEI policies in place at HD that are in direct opposition to most
Harley Davidson customers. Instead of apologizing and telling their
customer base they are correcting this problem. HD responded with a
mealy mouth release stating they are saddened to learn of a campaign to
"divide the Harley Davidson community". Meanwhile, behind the scenes
they are indeed scrambling and shutting down the unpopular DEI
initiatives. Sunlight is the best disinfectant and until HD comes clean
with an open and honest approach, the skepticism will remain from their customer base. CEO must go!

Twister
29 October, 2024
Hmm. A brand known for its obnoxiously loud underperforming vehicles is
under attack by a client base known for their intolerance and hatred.
It would be fun to watch if it weren't so tragic and, frankly, American.


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