.jpg)
5 hours ago
3
Article content
(Bloomberg) — Harley-Davidson Inc. withdrew its 2025 outlook, citing a lack of clarity around US trade policy and weakening economic conditions.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Article content
Revenue tumbled 23% to $1.3 billion, missing estimates, as motorcycle sales worldwide fell 21% in the first quarter, including a 24% drop in the key North America market. It had previously forecast revenue that would be flat or down 5% this year, and a 7% to 8% operating income margin.
Article content
Article content
“Our first quarter results were ahead of our expectations in many areas, while retail sales in the US came in softer than anticipated,” Chief Executive Officer Jochen Zeitz said in a statement. “Due to the uncertain global tariff situation and macroeconomic conditions, we are withdrawing our full year 2025 financial outlook.”
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Zeitz, who notified Harley’s board last fall of his desire to step down, is defending his strategy and fighting a proxy battle against one of the company’s shareholders, which has called for the immediate removal of Zeitz and two other board members. The search for his successor is unfolding while the the 122-year-old company contends with falling sales, as high interest rates and the potential impact of President Donald Trump’s trade war crimp demand for discretionary items like motorcycles.
Article content
Harley imports $50 million worth of steel from Mexico and Canada and $50 million worth of components from China, a source of potential tariff exposure, UBS AG noted in a March research note. During President Trump’s first term, the company was ensnared in a tit-for-tat trade war between the US and the EU.
Article content
Article content
The company also announced last summer it would move some US production to Thailand, according to the Milwaukee Journal Sentinel, potentially adding another tariff wrinkle.
Article content
Zeitz noted in a memo to employees in April that the company is “facing one of the most challenging times in the long history of motorcycling, including due to many external factors and headwinds,” according to a securities filing. The company is exploring options for its financing arm, including a sale, Bloomberg reported last month.
Article content
Earnings per share fell 38% from a year ago to $1.07.
Article content
Shares of the Milwaukee-based company rose less than 1% in premarket trading Thursday. The stock has fallen 26% this year through Wednesday’s close.
Article content
Strained Dealer Relations
Article content
Zeitz sought to rehabilitate Harley’s profits by shrinking inventories and selling fewer bikes at higher prices, while exiting money-losing markets around the world and growing Harley’s apparel business. That strategy has been tested as the highest interest rates in more than two decades dampened US consumer appetite. At the same time, he strained relationships with dealers as he sought more control of merchandise via online channels and trimmed their cut of revenue.
English (US)