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Dec 31, 2020
Harley-Davidson Q4 2020 Earnings Report
Harley-Davidson reported fourth quarter and full-year 2020 results, resetting its business to execute The Hardwire Strategic Plan.
Key Takeaways
Harley-Davidson's Q4 2020 revenue was $725 million, a 32% decrease compared to Q4 2019. The company reported a net loss of $96 million, with a diluted EPS of -$0.63. Despite the challenging quarter, Harley-Davidson highlighted its progress in overhauling the company through The Rewire, building a foundation for its new 5-year strategic plan, The Hardwire.
Delivered full year diluted EPS of $0.01 and adjusted diluted EPS of $0.77.
Increased cash flow from operations $310 million from 2019 to $1.2 billion.
Streamlined product portfolio reducing planned number of models by 30 percent.
Dealer year-end inventory reduced 59 percent, driving improvements in motorcycle transaction prices and enhancing motorcycle value.
Revenue by Segment
Forward Guidance
Harley-Davidson is focused on executing its new 5-year strategic plan, The Hardwire, through 2025. The plan aims to enhance the company's position as the most desirable motorcycle brand in the world.
Positive Outlook
- Strengthening existing business while allowing for desirable growth
- Successfully adjust to shifting global consumer needs and interests
- Successfully carry out its global manufacturing and assembly operations
- Develop and introduce products, services and experiences on a timely basis that the market accepts
- Successfully manage and reduce costs throughout the business
Challenges Ahead
- COVID-19 pandemic, including the length and severity of the pandemic across the globe and the pace of recovery following the pandemic
- Inability to execute its business plans and strategies, including The Hardwire
- Inability to accurately analyze, predict and react to changing market conditions
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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