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Sep 30, 2023
Harley-Davidson Q3 2023 Earnings Report
Harley-Davidson reported a decrease in revenue and operating income due to a decline in motorcycle shipments, partially offset by growth in financial services.
Key Takeaways
Harley-Davidson's Q3 2023 results reflect a challenging macro environment, with a 6% decrease in consolidated revenue and a 38% decrease in operating income. HDMC revenue declined by 9%, while HDFS revenue increased by 15%. The company reaffirms its full-year 2023 outlook.
Strategy remains grounded in desirability and profitability.
Successful launch of two new CVO motorcycles, CVO retail sales up +25%, with new features aligning with consumer preferences.
HDMC Revenue declined 9%, behind a 20% decrease in wholesale shipments.
LiveWire commenced production and launch of the Del Mar electric motorcycle.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company reaffirms its most recent guidance and continues to expect: •HDMC: revenue growth of flat to 3% and operating income margin of 13.9 to 14.3% •HDFS: operating income decline of 20 to 25% •LiveWire: motorcycle unit sales of 600–1,000 and operating loss of $115 to $125 million •Harley-Davidson, Inc.: capital investments of $225 to $250 million
Positive Outlook
- HDMC: revenue growth of flat to 3%
- HDMC: operating income margin of 13.9 to 14.3%
- HDFS: operating income decline of 20 to 25%
- LiveWire: motorcycle unit sales of 600–1,000
- Harley-Davidson, Inc.: capital investments of $225 to $250 million
Challenges Ahead
- challenging macro and consumer backdrop
- HDMC Revenue declined 9%, behind a 20% decrease in wholesale shipments
- HDFS operating income decline of $22 million, or down 27 percent, was driven by an increased provision for credit losses and higher interest expense.
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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