Financial Data and Key Metrics Changes - Harley-Davidson's consolidated revenue in Q1 2025 decreased by 23% compared to the previous year, with operating income down 51% at HDMC, partially offset by a 19% increase in operating income at HDFS [18][20][26] - The consolidated operating income margin for Q1 was 12.1%, down from 15.2% in the same quarter last year, primarily due to lower volume and efforts to reduce dealer inventory [18][22] - Earnings per share for Q1 was reported at $1.07 [18] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 27% in Q1, driven by a 33% decline in motorcycle shipments, totaling 39,000 units compared to 58,000 units in the prior year [20][21] - HDFS revenue was $245 million, a decrease of 2%, while operating income increased by 19% to $64 million due to lower provisions for credit losses [26][27] - LiveWire segment reported an operating loss of $20 million, which was an improvement from a $29 million loss in the prior year [29] Market Data and Key Metrics Changes - Global retail sales were down 21% in Q1, with a 24% decline in North America, attributed to low consumer confidence [4][5] - EMEA region saw a retail decline of just 2%, while APAC experienced a 28% decline, primarily due to softness in China and Japan [6] - LATAM reported a 6% decline in retail sales year over year [6] Company Strategy and Development Direction - The company is focusing on a selective expansion strategy, planning to introduce new entry-level products and an iconic classic motorcycle starting next year [9][88] - A significant marketing development fund is being allocated to support dealer networks closer to the riding season [5][14] - The company is evaluating its investment in LiveWire due to challenges in the EV segment and plans to drive cost savings to achieve a sustainable business model [10][11][96] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the uncertain macroeconomic environment and its impact on consumer confidence, leading to the withdrawal of the 2025 financial guidance [11][31] - There is cautious optimism regarding potential trade deals that may mitigate tariff impacts [12][56] - Sequential improvement in retail sales was noted from February to April, indicating a slight recovery in consumer demand [64][65] Other Important Information - The company achieved $142 million in operating cash flow, an increase of $38 million from the prior year, and ended Q1 with $1.9 billion in cash and cash equivalents [30][31] - Harley-Davidson repurchased 3.4 million shares for $87 million in Q1 as part of its capital allocation strategy [30][33] Q&A Session Summary Question: What might the economics of a long-term strategic partnership look like for Harley Davidson? - Management emphasized the importance of demonstrating the premium value of HDFS and maintaining long-term funding optionality [36][38] Question: Is it fair to say that the strategic nature of HDFS is being reconsidered due to stock valuation? - Management confirmed that while HDFS remains strategic, they are exploring options to ensure its value is recognized in the market [44][46] Question: Can you provide insight into the tariff impacts and anti-American sentiment? - Management clarified that while tariffs pose challenges, the majority of their products are manufactured in the U.S., and they have a U.S.-centric sourcing strategy [50][54] Question: How has the retail environment changed in April compared to previous months? - Management reported sequential improvement in retail sales from February to April, indicating a positive trend [64][65] Question: What led to the decision to bring back entry-level bikes? - The company believes it can now offer competitive entry-level models that are profitable, following significant investments in core business areas [88][89]

Financial Performance - Harley-Davidson's diluted EPS was $1.07[6], a decrease of 38% year-over-year[12] - HDMC revenue decreased by 27% year-over-year to $1,082 million[6, 12], primarily due to a planned decrease in motorcycle shipments[6] - HDMC operating income margin was 10.8%[6, 12], a decrease from 16.2% in Q1 2024[21, 22] - HDFS operating income margin increased to 26.1%[6, 12], with operating income of $64 million, a 19% increase year-over-year[12, 27] - LiveWire revenue decreased by 42% to $3 million[12, 31], with a 72% decrease in motorcycle units sold (33 units)[31] Retail Sales and Market Share - Global motorcycle retail sales decreased by 21% year-over-year[6, 13], driven by a volatile macro environment and consumer uncertainty[6] - North America retail sales decreased by 24%[13] - Asia Pacific retail sales decreased by 28%[13] - Harley-Davidson's U.S market share was 36% for new 601+CC motorcycles[13] Capital Allocation - The company repurchased $87 million of shares (3.4 million shares) on a discretionary basis[6, 35] - The company has repurchased 10.5 million shares on a discretionary basis or $337 million of HOG stock towards the $1 billion target[38] Tariffs - The net new 2025 tariff headwind is estimated at $130 - $175 million[26]

Group 1 - Harley-Davidson, Inc. will release its first quarter 2025 financial results before market hours on May 1, 2025 [1] - An audio webcast is scheduled for May 1, 2025, from 8-9 a.m. CT, where senior management will discuss financial results and business developments [1] - A slide presentation supporting the discussion will be available prior to the audio webcast [1] Group 2 - Participants should log on and register at least 10 minutes before the start time for the webcast [2] - A replay of the audio webcast will be available approximately two hours after the call concludes [2] Group 3 - Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services [3]

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].

hapabapa Listen below or on the go on Apple Podcasts and Spotify U.S. government informs Nvidia (NVDA) it requires license to export H20 hardware to China. (00:22) Bagged and dragged: Vera Bradley (VRA) sets new lows as rebranding falls flat. (01:39) Major shareholder seeks Harley-Davidson (HOG) board shakeup, calls for CEO to step down - report. (03:00) This is an abridged transcript. Nvidia (NASDAQ:NVDA) received a notice from the U.S. government that it needs a special license to ship its H20 graphic pro ...

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].