Harley-Davidson Reports Unexpected Losses, Maps Out Road Ahead

MILWAUKEE, WI — Harley-Davidson, Inc. on Tuesday reported a fourth-quarter loss of $96.4 million, or 63 cents per share, figures that did not meet Wall Street expectations, according to reports. The motorcycle manufacturer had reported a profit for the same period last year.

The company also launched a five-year strategic plan it called "The Hardwire," which targets long-term profitable growth and brand desirability.

"(The year) 2020 was an extraordinary year in many ways and our team navigated many challenges. We managed COVID-19 impacts, kept our community well-being at the forefront, protected liquidity and delivered $250 million in cash savings," Harley-Davidson president and CEO Jochen Zeitz said in a release.

According to reports, Harley-Davidson's revenue fell to $725 million, down 32 percent from a year earlier. The company's adjusted revenue of $531 million fell well below analyst estimates of $772.9 million, according to Barron's.

Meanwhile, the company said its North American sales were down 15 percent in the quarter and 18 percent for the full year. Worldwide, Harley-Davidson left 39 markets in 2020, and its bike sales were down 17 percent for the year.

Following the earnings announcement and conference call with analysts, the Milwaukee Journal Sentinel reported Harley-Davidson's shares tumbled, closing at $33.28, down 17 percent for the day.

In addition to the "The Hardwire" plan's stated financial goals — like double-digit earnings-per-share growth through 2025 — the company said it hopes to appeal to people who don't ride motorcycles by investing in its Touring, large Cruiser and Trike segments. The plan also strengthens the commitment to a new electric-motorcycle division and offers about 4,500 employees an equity grant.

"By unlocking our full potential, prioritizing profit through leadership and fueling our lifestyle brand with an enhanced product offering and leading digital capabilities, our strategic plan will drive the desirability of Harley-Davidson for all,” Zeitz said in a press release.

Read more in the Milwaukee Journal Sentinel.

Read more at Barron's.com.