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Jun 26, 2022
Harley-Davidson Q2 2022 Earnings Report
Harley-Davidson's Q2 2022 financial performance was impacted by a production suspension, but pricing and growth in apparel partially offset the negative impact. The company reaffirms its full-year 2022 outlook.
Key Takeaways
Harley-Davidson reported a decrease in revenue and operating income for Q2 2022, primarily due to a production suspension. However, pricing strategies and growth in apparel helped to mitigate the negative impact. The company reaffirms its full-year 2022 outlook.
Global motorcycle shipments decreased by 15% due to a two-week production suspension.
HDMC revenue declined by 5%, but global pricing and apparel growth partially offset the impact.
HDMC operating income margin increased by 1.2 points to 15.1% due to pricing, lower operating expenses, and reduced EU tariffs.
GAAP diluted EPS increased by 10% to $1.46, and Harley-Davidson repurchased $64 million of shares.
Revenue by Segment
Forward Guidance
For the full year 2022, the Company reaffirms its initial guidance and continues to expect: HDMC revenue growth of 5 to 10%, HDMC operating income margin of 11 to 12%, HDFS operating income to decline by 20 to 25%, and Capital investments of $190 million to $220 million.
Positive Outlook
- HDMC revenue growth of 5 to 10%
- HDMC operating income margin of 11 to 12%
- Capital investments of $190 million to $220 million
- Manufacturing, logistics and material costs moderately improve in the back-half of the year
- Overall operations performance stabilizes and we get beyond the peak levels of inflation experienced in 2021
Challenges Ahead
- HDFS operating income to decline by 20 to 25%
- The COVID-19 pandemic, including the length and severity of the pandemic across the globe and the pace of recovery following the pandemic
- Manage supply chain and logistic issues, including quality issues, availability of semiconductor chip components and the ability to find alternative sources of those components in a timely manner, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, war or other hostilities, including the conflict in Ukraine, or natural disasters, and longer shipping times and increased logistics costs, including by successfully implementing pricing surcharges
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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