American iconic brand reports losses in year-to-date results
When COVID-19 hit, the world stood still as lockdowns were imposed across the globe. Travel was restricted except for those who transported essential items. After these lockdowns were eased, those who could afford had too much cash on hand, and many splurged on recreational items such as luxury cars, motorcycles, jetskis, and more.
Sales were at an all-time high for the companies that specialize in these recreational items and have happily reported record sales from 2021 to 2023. Well, that kind of splurging of those who could afford might be at its end.
Recently, Pierer Mobility (PM) – the parent company of KTM, GASGAS, and Husqvarna – has reported a negative result for the 1st half of 2024, and has moved to enact drastic measures to cut losses, including the reduction of its executive board from 6 to just 2.
Softail Standard
Across the Atlantic (from Europe), another company reports that it is in rough waters. American motorcycle company, Harley-Davidson (HD), has reported that its Year-to-Date (YTD) numbers are in the negative, and like PM, has lowered its financial outlook for the remainder of 2024.
“We have worked diligently through the quarter to mitigate the impact of high interest rates, and macroeconomic and political uncertainty, that continue to put pressure on our industry and customers, especially in our core markets,” said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson.
According to the company’s latest report, stateside sales have decreased by 10%, while its global retail sales have decreased by 13% vs the same period last year. Additionally, its shipments of motorcycles have decreased by a whopping 39%. These figures have resulted in HD’s 32% consolidated decline in revenues.
“We are very pleased with the reception of our touring launch with customers and dealers alike and are working hard to set the Company up for a solid 2025. We are optimistic about our ability to make sound progress in the new year, and we are expecting further interest rate reductions and improved consumer confidence will provide the industry with a needed tailwind,” adds Zeitz.
HD also reports that its operating income took a major hit, down almost 50% compared to the same period in 2023. The company says that it expects 2024 revenues to be down by 14-16%, and will be losing up to USD 115 million in its LiveWire (electric motorcycle) brand.
