Harley-Davidson cuts revenue forecast on inflation, DEI backlash

Core Viewpoint - Harley-Davidson has revised its full-year revenue forecast downward due to persistent inflation and weak demand following a consumer boycott that led to the abandonment of diversity, equity, and inclusion (DEI) programs [1][2]. Financial Performance - Sales in North America decreased by 10%, with global shipments expected to decline by 16% to 17%, compared to a previous forecast of a 7% to 10% decline [1]. - The company now projects annual retail sales to drop by 6% to 8%, a significant change from the earlier expectation of flat sales to an increase of 3% [1]. - Revenue from motorcycles and related products is anticipated to decrease by 14% to 16%, compared to a prior estimate of a decline of 5% to 9% [1]. Corporate Policy Changes - Harley-Davidson has renounced its DEI initiatives, stating that it has not operated a DEI function since April 2024 and does not have hiring quotas or supplier diversity spend goals [2][3]. - The company is reassessing employee training initiatives and sponsorships, focusing on its loyal customer base and the sport of motorcycling [3]. Market Reaction - Following the announcement of the revised forecast and policy changes, Harley-Davidson's shares fell over 3% but rebounded by about 2% the next trading day. The stock is down approximately 15% over the last month and 11% year-to-date [2].