Motorcycle maker Harley-Davidson reported an adjusted net loss for the quarter when analysts had been expecting earnings. Sales also came in short of expectations.
David Paul Morris/Bloomberg
Harley-Davidson reported a surprise loss during its fourth quarter. Though the company unveiled its five-year strategic plan, there’s a long road ahead for the American motorcycle brand.
Harley-Davidson (ticker: HOG) reported an adjusted net loss of 44 cents a share, well below analysts’ expectations for adjusted earnings of 21 cents a share, according to FactSet. Sales of $531 million also clocked in below analyst estimates, which called for sales of $772.9 million.
Jochen Zeitz, who was named CEO this past May, touted the company’s turnaround efforts, which included $250 million in cash savings. Now the company is looking ahead, launching a five-year strategic plan it calls “The Hardwire.”
The company set goals like low double-digit earnings-per-share growth through 2025, mid-single-digit revenue growth in the motorcycles segment, and double-digit growth in the financial services segment operating income. The plan includes capital investments of $190 million to $250 million annually.
Other goals include appealing more to people who don’t ride motorcycles, investing in growing its Touring, large Cruiser and Trike segments. The plan also includes a stronger commitment to a new electric-motorcycle division, and offering 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 news release.
Harley-Davidson stock is down 13% in premarket trading. At $34.78, the stock was still above its levels seen in early fall 2020, as well as a 52-week low of $14.31.
Write to Connor Smith at [email protected]
