Harley-Davidson named Topgolf Callaway executive Artie Starrs as its new CEO, replacing Jochen Zeitz. https://t.co/sx1XT1lYy4 ...

Core Insights - Harley-Davidson, Inc. reported second-quarter 2025 adjusted earnings of 88 cents per share, missing the Zacks Consensus Estimate of 99 cents and down from $1.63 per share in the same quarter last year [1][8] - Consolidated revenues totaled $1.31 billion, a decline of 19% year-over-year [1] Segmental Highlights - Revenues from the Motorcycle and Related Products segment fell 23% year-over-year to $1.04 billion, missing the forecast of $1.15 billion due to lower motorcycle shipments [2] - Worldwide motorcycle shipments decreased by 28% to 35,800 units, lagging behind the estimate of 40,923 units [2] - Revenues from motorcycle sales were $778 million, down 27% year-over-year [2] - Operating income for the motorcycle segment dropped 69% year-over-year to $61 million, below the estimate of $83.4 million [2] Retail Performance - Harley-Davidson retailed 42,300 motorcycle units globally, a decline of 15% year-over-year, and below expectations of 46,094 units [3] - Retail motorcycle sales in North America decreased by 17% to 28,900 units [3] - Sales in EMEA declined by 5%, while Asia Pacific and Latin America saw declines of 21% and 11%, respectively [3] Parts, Accessories, and Financial Services - Revenues from parts and accessories decreased by 4% year-over-year to $187 million, slightly exceeding the estimate of $185.3 million [4] - Apparel revenues fell 13% year-over-year to $55 million, missing the forecast of $67.7 million [4] - Harley-Davidson Financial Services reported revenues of $257 million, down 2% year-over-year and below the estimate of $289.6 million [4] LiveWire Performance - Total shipments for LiveWire were 55 units, a decline of 65% from the previous year [5] - Revenues for LiveWire decreased by 7% to $6 million, surpassing the estimate of $2.9 million [5] - Operating loss for LiveWire narrowed from $28 million to $19 million, which was wider than the projected loss of $15 million [5] Financial Position - Selling, general, and administrative expenses increased to $237.4 million from $235.2 million year-over-year [6] - Harley-Davidson paid dividends of 18 cents per share and did not repurchase any shares in the second quarter [6] - As of June 30, 2025, the company had cash and cash equivalents of $1.59 billion, with long-term debt decreasing to $4.37 million from $4.47 million at the end of 2024 [6] Guidance Updates - The company has withheld its 2025 HDMC financial outlook due to tariff uncertainties but updated guidance for LiveWire and HDFS [7] - For LiveWire, the expected operating loss is now projected to be between $59 million and $69 million, down from the previous estimate of $70 million to $80 million [7] - HDFS anticipates full-year 2025 operating income to range between $525 million and $550 million following a new partnership with KKR and PIMCO [9]

Leadership Change - Harley-Davidson appoints Artie Starrs, former head of Topgolf, as the new CEO [1]

Leadership Change - Harley-Davidson appoints Arthur Starrs, former head of Topgolf, as its new president and chief executive [1]

Core Insights - Harley-Davidson has appointed Artie Starrs as the new President and CEO, effective October 1, 2025, succeeding Jochen Zeitz [1][4] - Artie Starrs brings extensive experience from Topgolf, where he led significant revenue growth and global expansion [2][3] - The transition aims to enhance Harley-Davidson's connection with its riders and attract new customers [2][4] Leadership Transition - Jochen Zeitz will remain as Chairman, President, and CEO until October 1, 2025, after which he will serve as a senior advisor until February 2026 [4][5] - Troy Alstead has been appointed to succeed Zeitz as Chairman of the Board effective October 1, 2025 [4][5] - The Board expressed gratitude for Zeitz's leadership and contributions during challenging times [5] Company Background - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, focusing on innovation and adventure [6] - The company aims to maintain its status as the most desirable motorcycle brand globally, offering customizable motorcycles and related experiences [6] - Harley-Davidson has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the U.S., aiming to lead in the electric motorcycle market [7]

Group 1 - KKR has announced a long-term strategic partnership with Harley-Davidson's financial services company, HDFS, with a transaction value of $5 billion (approximately 36 billion RMB) [1] - Harley-Davidson has faced declining sales among younger consumers, prompting the company to sell its financial services division [5][6] - The sale of HDFS is part of Harley-Davidson's strategy to reduce its financial burden amid a significant drop in motorcycle sales and revenue [5][6] Group 2 - KKR's recent financial performance shows a 17% increase in management fee income to $887 million, with adjusted net income reaching $1.1 billion [8] - KKR raised $28 billion (over 200 billion RMB) in the last three months, increasing its total assets under management to $686 billion [8] - KKR's investment strategy remains active, with significant capital allocated to various sectors, including a focus on the Asian market [9][10]

Core Viewpoint - KKR has announced a strategic partnership with Harley-Davidson's financial services company HDFS, with a transaction value of $5 billion (approximately 36 billion RMB) [4][5]. Group 1: KKR and Harley-Davidson - KKR has a historical connection with Harley-Davidson, having previously shown interest in acquiring the company about a decade ago [4]. - The acquisition of HDFS is part of Harley-Davidson's strategy to divest non-core assets amid declining sales and market challenges, particularly among younger consumers [9][10]. - Harley-Davidson's overall revenue decreased by 19% to $130.7 million in Q2, with motorcycle shipments down 28% year-over-year [9][10]. Group 2: Financial Performance and Market Context - KKR's management fee income grew by 17% to $887 million in the last quarter, with adjusted net income reaching $1.1 billion, slightly exceeding market expectations [11]. - KKR raised $28 billion (over 200 billion RMB) in the last three months, increasing its total assets under management to $686 billion, aiming for $1 trillion by 2029 [11][12]. - KKR's private equity portfolio shows that about 60% of its investments are valued at over 1.5 times their cost, indicating strong performance in its investment strategy [12].

Financial Performance - Harley-Davidson expects to have $1250 million (12.5 亿) in new discretionary cash [1] Corporate Strategy - Harley-Davidson 通过出售近 10% 的融资部门股份获得资金 [1]

Core Insights - Harley-Davidson reported Q2 2025 results with GAAP revenue of $1,307 million, exceeding analyst expectations of $1,099 million, but GAAP earnings per share (EPS) fell to $0.88, below the anticipated $0.96 [1][2] - Year-over-year metrics showed significant declines: revenue decreased by 19%, operating income dropped by 53%, and EPS fell by 46% [1][2] - Management did not provide full-year guidance due to uncertainties related to global tariffs and weak demand for discretionary goods [1] Financial Performance - Q2 2025 GAAP EPS was $0.88, down 46% from $1.63 in Q2 2024 [2] - GAAP revenue was $1,307 million, a 19.3% decline from $1,619 million in Q2 2024 [2] - Operating income fell to $112 million, a 53.5% decrease from $241 million in the previous year [2] - Net income attributable to Harley-Davidson, Inc. was $108 million, down 50.5% from $218 million in Q2 2024 [2] - HDMC operating margin contracted to 5.9%, down from 14.7% a year earlier [2] Business Overview - Harley-Davidson manufactures heavyweight motorcycles known for their distinctive style and brand image, and operates Harley-Davidson Financial Services and LiveWire, its electric motorcycle business [3] - The company has a global presence supported by a widespread dealer network and a robust lifestyle brand [3] Strategic Developments - A significant strategic move involved selling a 4.9% stake in its financial services arm to KKR and PIMCO, unlocking $1.25 billion in discretionary cash [5] - This transaction is expected to fund $450 million in debt repayment and $500 million in share repurchases in the second half of 2025 [5] Market Trends - The core motorcycle segment experienced a contraction, with global retail sales down 15% and shipments falling 28% [6] - North America retail sales declined by 17%, while the Asia-Pacific region saw a 21% drop, attributed to weak demand in China and Japan [6] - Dealer inventory levels were 28% lower compared to Q2 2024 [6] Product Innovation - New product launches included the limited CVO Road Glide RR, targeting both affordability and profitability in smaller displacement and classic motorcycle segments [7] - Parts and accessories revenue decreased by 4%, and apparel revenue was down 13% due to slowed discretionary spending [7] Electric Motorcycle Segment - LiveWire revenue was subdued at $6 million, with units delivered plunging 65% to just 55 [8] - Future investments in LiveWire are restricted to an existing $100 million credit line, with expected operating losses of $59–69 million for full year 2025 [9] Financial Services - Harley-Davidson Financial Services segment revenue slipped 2% to $257 million, maintaining a high margin of 27.1% [10] - Operating income for Financial Services is estimated at $525–550 million for the year, reflecting benefits from the recent transaction [12] Dividend and Share Repurchase - The company continued dividend payments, distributing $0.18 per share, a slight increase from the previous year's $0.1725 [11] - Plans to accelerate share repurchases with proceeds from the KKR and PIMCO transaction in the second half of 2025 [11]

Harley Davidson Shares Soar on Captive Deal. Listen for more on Bloomberg Intelligence. https://t.co/yNw0AEdzm8 ...