On July 25, 2024, Harley-Davidson Inc (HOG, Financial) released its 8-K filing detailing its second-quarter financial results for 2024. Harley-Davidson, a global leader in heavyweight motorcycles, reported notable achievements despite a challenging market environment.
Company Overview
Harley-Davidson Inc (HOG, Financial) is renowned for manufacturing heavyweight motorcycles, including custom, cruiser, and touring models. The company also offers a comprehensive range of motorcycle parts, accessories, riding gear, and apparel. Harley-Davidson Financial Services (HDFS) provides wholesale financing to dealers and retail financing and insurance brokerage services to customers. The company has a significant presence in the adventure touring market with its Pan America model and in the electric motorcycle market with the LiveWire brand.
Q2 2024 Financial Highlights
Harley-Davidson Inc (HOG, Financial) reported a diluted earnings per share (EPS) of $1.63, surpassing the analyst estimate of $1.40. The company achieved a revenue of $1,619 million, exceeding the estimated $1,282.76 million. This represents a 12% increase in revenue compared to the same quarter last year.
Performance and Challenges
Despite a 1% decline in North American motorcycle retail performance, Harley-Davidson saw a 12% increase in retail sales of Touring and CVO motorcycles in the U.S. The company’s global motorcycle shipments rose by 16%, driving a 13% increase in Harley-Davidson Motor Company (HDMC) revenue. However, the gross margin decreased by 2.7 points due to pricing impacts, sales incentives, higher manufacturing costs, and adverse foreign exchange effects.
Financial Achievements
Harley-Davidson Inc (HOG, Financial) reported a consolidated operating income of $241 million, a 9% increase from the previous year. The company’s net income attributable to HDI was $218 million, up 23% from the prior year. HDFS operating income increased by 21%, driven by higher interest income and a lower provision for credit losses.
“Despite a challenging market, we are pleased with our second quarter performance, in which we grew our U.S. market share in a declining market, with notable unit growth of more than 11 percent in the important core category of Touring,” said Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson.
Income Statement and Key Metrics
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $1,619 million | $1,446 million | 12% |
| Operating Income | $241 million | $221 million | 9% |
| Net Income Attributable to HDI | $218 million | $178 million | 23% |
| Diluted EPS | $1.63 | $1.22 | 34% |
Analysis and Outlook
Harley-Davidson Inc (HOG, Financial) has demonstrated resilience in a challenging market by focusing on its core categories and executing its Hardwire strategy. The company’s ability to grow its U.S. market share and increase global motorcycle shipments highlights its strong market position. However, the decline in gross margin and the challenges in international markets, particularly in the Asia Pacific region, indicate areas that require attention.
Looking ahead, Harley-Davidson has revised its full-year 2024 financial outlook to reflect the current environment. The company plans to repurchase $1 billion of shares through 2026, signaling confidence in its long-term growth prospects.
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Explore the complete 8-K earnings release (here) from Harley-Davidson Inc for further details.
