Harley shares sink on loss, lackluster turnaround plan

Harley-Davidson reported an adjusted loss per share of 44 cents, missing analysts’ consensus estimate for a 23 cent-profit and below the 20 cents it p
Representational image of Harley-Davidson Street Rod
Representational image of Harley-Davidson Street Rod

Harley-Davidson Inc. shares plunged after the motorcycle manufacturer reported a surprise loss in the fourth quarter and unveiled a turnaround plan that failed to impress investors.

The Milwaukee, Wisconsin-based company on Tuesday reported an adjusted loss per share of 44 cents, missing analysts’ consensus estimate for a 23 cent-profit and below the 20 cents it posted a year ago. Motorcycle shipments fell 48% in the quarter.

Also check these Vehicles

Find more Cars
Harley-davidson Harley Davidson Street Glide Special (HT Auto photo)
Engine Icon1868.0 cc Mileage Icon18.3 kmpl
₹ 31.99 Lakhs
Suzuki Burgman Street (HT Auto photo)
Engine Icon124.0 cc Mileage Icon55.89 kmpl
₹ 94,000 - 1.14 Lakhs
View Offers
Triumph Street Twin (HT Auto photo)
Engine Icon900.0 cc Mileage Icon24.5 kmpl
₹ 7.45 - 8.25 Lakhs
View Offers
Triumph Street Triple (HT Auto photo)
Engine Icon765 cc Mileage Icon19.23 kmpl
₹ 10.17 - 11.81 Lakhs
View Offers
Kawasaki W800 Street (HT Auto photo)
Engine Icon773.0 cc Mileage Icon14 kmpl
₹ 6.99 Lakhs
Bajaj Avenger Street 160 (HT Auto photo)
Engine Icon160.0 cc Mileage Icon47.2 kmpl
₹ 93,677 - 1.14 Lakhs
View Offers

Also Read : 2021 Harley-Davidson Street Bob gets bigger heart and more features

Harley shares pared a drop as low as 22% in early trading, falling 19% to $32.52 as of 10:01 a.m., the sharpest decline in almost a year.

Revenue from motorcycles and related products fell 39% in the fourth quarter to $531 million as Harley reduced inventory and shifted its release of new models from fall to the first quarter of this year.

In its overhaul plan, the manufacturer said it’s aiming for low double-digit growth in earnings per share and “mid single-digit" growth in motorcycle revenue by 2025. Harley plans to achieve that by investing more in its core heavyweight-bike segment -- a category that has been shrinking across the industry -- and by setting up a standalone electric-motorcycle division.

Also Read : Harley-Davidson's bestseller Street 750, Street Rod bikes meet end of the line

Harley is hoping that will end a six-year streak of falling sales in the U.S., which made up 58% of Harley’s total deliveries in 2020. It sold 103,650 bikes in its home market last year, a 22% drop and the lowest level in at least a decade.

Chief Executive Officer Jochen Zeitz, a branding whiz who successfully revived sneaker company Puma SE in the late 1990s, also said he would pour new effort into increasing sales of parts and accessories and Harley-Davidson apparel. He’s hired a veteran marketer from his Puma days to aid in that project.

Zeitz’s “Hardwire" strategic plan straddles both its past of roaring gas-powered bikes and an electric future. It calls for investing $190 million to $250 million annually, in part to develop Harley’s electrification technology that lags behind Asian and European rivals.

The company announced an equity grant to 4,500 Harley workers in an effort to promote internal buy-in of the plan.

The first non-American CEO in the company’s 118-year history, Zeitz has scaled back his predecessor’s overseas ambitions, culled the new model pipeline, and starved dealers of inventory to raise prices. Now he has to find growth beyond an aging U.S. customer base, a problem that has bedeviled past Harley CEOs.

First Published Date: 03 Feb 2021, 11:57 AM IST

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.