Core Viewpoint - A major shareholder, H Partners Management, is advocating for significant changes to Harley-Davidson's board, specifically calling for the removal of CEO Jochen Zeitz and two other long-standing board members due to dissatisfaction with the company's performance and governance [1][4][6]. Group 1: Shareholder Actions - H Partners Management holds approximately 9.1% of Harley-Davidson's shares and is urging other shareholders to vote "withhold" at the upcoming shareholder meeting in May regarding the re-election of Zeitz and two board members [2][4]. - The firm believes that voting to "withhold" would send a strong message of dissatisfaction with the current board and the need for meaningful change [4]. Group 2: Performance Concerns - H Partners has criticized the company's performance, attributing it to an "inability to course-correct," which they partly blame on CEO Zeitz and board member Thomas Linebarger [6][8]. - The company has experienced a significant decline in share value, with a drop of over 24% since the beginning of the year and a 42.7% decline over the past 12 months [9]. Group 3: Financial Overview - Harley-Davidson reported a revenue of $4.12 billion for 2024, reflecting a 14.9% decline year-over-year, with annual net income falling to $455.36 million [11]. - The company's forecast for 2025 indicates that revenue is expected to be "flat, to down 5%" [14]. Group 4: Leadership and Strategic Direction - H Partners is advocating for the immediate removal of Zeitz and the appointment of an interim CEO until a permanent replacement is found, expressing concerns that the current board cannot be trusted to oversee crucial decisions, including CEO succession [5][8]. - The firm emphasizes the need for a leader who can repair relationships with dealers, engage with riders, and restore the company's brand and culture [10].

Core Viewpoint - Harley-Davidson is experiencing increased investor interest despite facing significant operational challenges and a declining stock price, which has led to its presence on several watchlists [1][2][5]. Financial Performance - The company's financial results for Q4 and the full year of 2024 were disappointing, showing a net loss in Q4, declines in revenue, and lower earnings-per-share (EPS) compared to 2023 [3]. - The cautious financial outlook for 2025 is influenced by ongoing challenges, including potential European Union tariffs on U.S. motorcycle imports [4]. Market Challenges - Harley-Davidson is grappling with cyclical headwinds, high interest rates affecting consumer confidence, and the need to manage dealer inventory amid softer demand [3]. - The company is facing external uncertainties, particularly regarding potential tariffs from the European Union, which could impact pricing and competitiveness in key markets [4]. Investor Sentiment - Despite the challenges, the stock is trading near multi-year lows, with a trailing P/E ratio of about 6.8 and a forward P/E of 6.6, suggesting significant pessimism is already priced in [6]. - The enduring strength of the Harley-Davidson brand and recent operational successes in the U.S. Touring segment are factors that some investors believe can help the company weather the current downturn [7][12]. Contrarian Opportunity - The negative sentiment surrounding Harley-Davidson has created a contrarian investment opportunity, as the brand is viewed as fundamentally sound despite its current low valuation [8][12]. - Significant short interest, with approximately 14.37 million shares sold short, indicates strong bearish sentiment but also the potential for heightened volatility if positive news emerges [9][10]. Strategic Actions - Management's decision to repurchase $450 million of shares in 2024 under a $1 billion authorization may signal confidence in the company's valuation [11]. - The ongoing CEO search presents an opportunity for new leadership to leverage the Hardwire strategy and address external risks, particularly regarding tariffs [13].

Company Overview - Jochen Zeitz plans to retire as CEO of Harley-Davidson in 2025 after a five-year tenure aimed at reviving the company amid declining demand [1][8] - Zeitz joined Harley's board in 2007 and became CEO in May 2020, previously known for reviving Puma's near-bankrupt business [1][8] Strategic Initiatives - The "Hardwire" strategy was launched in 2021 to connect with younger riders and address the aging customer base of baby boomers [2] - This five-year strategy focuses on high-margin products, exiting low-sales international markets, and modernizing the brand's appeal [3] Market Challenges - The motorcycle industry faces challenges such as higher interest rates and a consumer preference for smaller, more affordable bikes, which are not Harley's strengths [4] - Harley's forecast for 2025 indicates flat to down 5% profit and motorcycle revenue as consumers are cautious with big-ticket purchases [4] Investor Sentiment - Analysts express concerns about the lack of end-market demand, which undermines the turnaround plan and affects dealer and investor confidence [5] - Harley's shares have decreased by about 1% to $22.90, while they have risen over 11% since Zeitz took charge, compared to a 77% rise in the S&P index [8]

MILWAUKEE, April 8, 2025 /PRNewswire/ -- The Board of Directors of Harley-Davidson, Inc. (the "Company") (NYSE: HOG) today confirmed that it is engaged in an on-going CEO search process, as part of the Board's succession planning responsibilities. The search process was initiated in Q4 2024 with the retention of a leading executive search firm after Jochen Zeitz, the current CEO, expressed his interest in retiring from the Company in 2025 after five years in the CEO position, and subject to the appointment ...

The trade war between the United States and the European Union (EU) is escalating, with the EU announcing €26 billion worth of retaliatory tariffs on American goods. This move comes shortly after the United States imposed 25% tariffs on steel and aluminum imports from the EU. Unlike before, the United States is not offering exemptions for products that are not available domestically.The EU’s countermeasures are set to take effect in two phases, on April 1 and April 13, and will affect primary American expor ...

Core Viewpoint - Harley-Davidson, Inc. will present at Citi's 2025 Global Consumer & Retail Conference, highlighting its ongoing engagement with investors and stakeholders [1] Company Background - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, aiming to lead the motorcycle industry through innovation and emotional connection [2] - The company has a vision of maintaining its status as the most desirable motorcycle brand globally, emphasizing a lifestyle that includes customizable motorcycles, experiences, accessories, and apparel [2] - Harley-Davidson Financial Services offers financing and insurance programs to support riders [2] - The company holds a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the U.S., which aims to become the leading electric motorcycle brand [2]

Core Viewpoint - Harley-Davidson, Inc. will present at the Bank of America Consumer & Retail Conference on March 12, 2025, discussing company insights and answering questions [1] Company Background - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services, aiming to be the most desirable motorcycle brand globally [2] - The company has been defining motorcycle culture since 1903, offering customizable motorcycles, experiences, accessories, riding gear, and apparel [2] - Harley-Davidson Financial Services provides financing, insurance, and other programs to support riders [2] - The company holds a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the U.S., focusing on urban adventure and electric motorcycle innovation [2]

Core Insights - Harley-Davidson reported a wider-than-expected adjusted loss of 93 cents per share for Q4 2024, compared to a consensus estimate of a loss of 68 cents, and a profit of 18 cents per share in the same quarter last year [2] - Consolidated revenues fell 35% year-over-year to $688 million, driven by significant declines in motorcycle sales and related products [2][3] Financial Performance - Revenues from the Motorcycle and Related Products segment dropped 47% year-over-year to $420 million, missing forecasts due to lower motorcycle shipments [3] - Worldwide motorcycle shipments decreased by 15% to 25,700 units, falling short of estimates [3] - Revenues from motorcycle sales alone plummeted 60% year-over-year to $231 million, with an operating loss of $214 million, significantly worse than the previous year's loss of $44 million [3] Regional Sales Performance - Retail motorcycle units sold globally decreased by 14.9% year-over-year, with North America sales down 4% to 15,127 units [4] - Sales in EMEA declined by 7%, while Asia Pacific and Latin America saw drops of 26% and 7%, respectively [4] Other Revenue Streams - Parts and accessories revenues fell 10% year-over-year to $118 million, but exceeded estimates [5] - Apparel revenues decreased by 6% to $54 million, also beating projections [5] - Harley-Davidson Financial Services reported revenues of $257 million, up 4% year-over-year, but missed forecasts [5] LiveWire Segment - LiveWire shipments fell 54% to 236 units, with revenues declining 32% to $10 million [6] - Operating loss for LiveWire narrowed to $26 million, better than projections [6] Financial Position - Selling, general, and administrative expenses decreased to $210.5 million from $225.5 million year-over-year [7] - Cash and cash equivalents increased to $1.59 billion, while long-term debt decreased to $4.47 million [7] 2025 Guidance - For 2025, Harley-Davidson expects revenues from HDMC to remain flat to down 5% year-over-year, with an operating income margin of 7-8% [8] - LiveWire segment anticipates wholesale units between 1,000-1,500 and an operating loss of $70-$80 million [9] Market Sentiment - Estimates for Harley-Davidson have trended downward, with a consensus estimate shift of -46.08% [10] - The company currently holds a subpar Growth Score of D and a Momentum Score of F, but an A on the value side, resulting in an aggregate VGM Score of C [11] - Harley-Davidson has a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [12]

Group 1 - Harley-Davidson, Inc. manufactures and sells motorcycles and related products globally, with 63% of unit sales in the United States in 2024 [1] - The company generates sales across various regions including EMEA, APAC, and Canada [1] Group 2 - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials, often revealed through a DCF model valuation [1]

Group 1: Harley-Davidson - Harley-Davidson is facing significant challenges with a negative return of 23.8% over the last five years, compared to an S&P 500 gain of 85.1% [2] - Revenue declined 35% year over year in Q4 2024 to $688 million, with full-year 2024 revenue down 11% to $5.84 billion [2] - The motorcycle segment saw a 47% decline in revenue year over year in Q4, and total motorcycle shipments fell by 53% [2] - Total net income for 2024 was $445 million, marking a 35% decline year over year, with a loss of $118.43 million in Q4 [3] - Sales have been in relative decline since 2015, with 2015 being the highest-selling year since 2010 [4] - The 2025 outlook is bleak, with expectations for flat or down revenue by as much as 5%, and financing expected to decline by 10% to 15% [5] Group 2: Kraft Heinz - Kraft Heinz has struggled for years to achieve meaningful growth, with a 3% decline in net sales for full-year 2024 and a 2.2% decline in diluted earnings per share [6] - The company anticipates flat sales or a decline of up to 2.5% in 2025, with adjusted operating income expected to decrease by 1% to 4% [7] - Despite a 21% increase in net income in 2023, earnings declined in 2024, indicating challenges in sustaining profit growth from stagnant sales [8] - Over the last five years, Kraft Heinz has underperformed the market by 44%, lacking momentum for stock growth [9]