Harley-Davidson, a legendary name in the motorcycle industry, faced a tough fourth quarter in 2024. While Harley-Davidson Financial Services (HDFS) reported an increase in revenue, overall performance across the company’s segments saw significant declines. As the market grapples with fluctuating demand and economic shifts, Harley-Davidson continues to navigate a challenging landscape.
In Q4 2024, Harley-Davidson Financial Services reported revenues of $257 million, reflecting a 4% year-over-year increase. However, this fell short of analysts' expectations of $267.1 million. The company’s operating income for this segment dropped by 20%, down to $46 million from the previous year, missing projections of $56.1 million.
Harley-Davidson’s overall revenues, which include motorcycle sales and financial services, declined by 35% year-over-year, totaling $688 million. This downturn significantly impacted the company’s bottom line, resulting in an adjusted loss of $0.93 per share—wider than the expected loss of $0.68 per share.
The Harley-Davidson Motor Company division, which generates most of the company’s revenue, experienced a significant decline. Revenues from motorcycles and related products dropped by 47% year-over-year, totaling $420 million. This missed analysts' expectations of $463 million due to lower-than-expected shipments.
Global motorcycle shipments fell 15% to 25,700 units, well below the estimated 27,122 units. Retail sales of motorcycles also suffered, dropping 14.9% year-over-year to 25,660 units. Sales performance varied across different regions:
Despite challenges in motorcycle sales, Harley-Davidson’s parts and accessories division showed resilience. Revenue from parts and accessories declined by 10% to $118 million but exceeded the estimated $94.7 million. Apparel sales, though down 6% to $54 million, performed better than expected, surpassing projections of $53.4 million.
LiveWire, Harley-Davidson’s electric motorcycle division, also faced difficulties. Shipments for LiveWire dropped by 54%, reaching only 236 units. Revenue for this segment fell 32% to $10 million. However, on a positive note, operating losses narrowed from $35 million to $26 million, performing better than the estimated $29 million loss.
As of December 31, 2024, Harley-Davidson Financial Services reported cash and cash equivalents of $1.59 billion, up from $1.53 billion the previous year. The company's long-term debt decreased to $4.47 million, down from $4.99 million in 2023. Additionally, the company continued dividend payouts of $0.1725 per share.
Harley-Davidson provided guidance for 2025, indicating potential stability but acknowledging ongoing challenges:
Harley-Davidson’s mixed performance in Q4 raises questions about its long-term strategy. While Harley-Davidson Financial Services remains a steady revenue stream, the broader company faces headwinds in demand and global market conditions.
For investors, monitoring key financial indicators such as revenue growth, cost management, and consumer demand will be crucial. While Harley-Davidson's stock performance remains volatile, understanding these financial movements can help traders make informed decisions.
Traders can explore alternative investment opportunities in the automotive and consumer discretionary sectors. Here are some options:
Despite challenges, Harley-Davidson Financial Services remains a crucial part of the company’s operations, providing consistent revenue amid declining motorcycle sales. Investors should keep an eye on market trends, financial reports, and industry movements to make informed trading decisions.
For those looking to invest in related assets, consider tracking S&P 500 Index Price, Automotive Stocks Price, or Consumer Discretionary Index Value for potential market opportunities.
When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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