Harley-Davidson dealership owner Bob DiFazio argues that a $ 2 billion coronavirus stimulus package for businesses is too small
Harley-Davidson Inc. announced plans to review its business after the COVID-19 pandemic dragged the company to a loss in the three months through June.
Harley reported a second-quarter loss of $ 92 million, or an adjustment of 35 cents a share, as revenue fell 7 percent year-over-year to $ 865 million. Wall Street analysts surveyed by Refinitiv anticipated adjusted earnings of 4 cents a share on revenue of $ 808.46 million.
“Full cabling is necessary to make Harley-Davidson a high-performance company,” CEO Jochen Zeitz said in a statement.
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The Milwaukee-based motorcycle maker’s five-year strategic plan, dubbed The Hardwire, will include major changes to Harley’s operating model, update the company’s iconic motorcycles, add new products to the mix, and focus on the business of parts and accessories and general merchandise.
The plan, which was teased along with the company’s first quarter results, will also include launching new product launches from August to the beginning of the year and collaborations with influencers to reach new buyers.
A new marketing campaign focused on Harley’s “unrelenting spirit” will include a collaboration with actor Jason Momoa, who has appeared in television and movie hits from “Aquaman” to “Game of Thrones” and “Stargate: Atlantis.”
Harley-Davidson will focus on 50 markets, most in North America and Europe, but also in parts of Asia. The company is working on plans to exit markets where volumes and profitability do not support further investments.
Rewire, Harley’s previous course correction plan that will continue through the end of 2020, is expected to generate $ 250 million in savings this year and $ 100 million in annual savings thereafter. The plan has reduced global inventory by 32 percent and has resulted in higher prices for used motorcycles.
Harley did not provide financial guidance due to the uncertainty caused by COVID-19.
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The shares fell 21 percent this year through Monday, worse than the S&P 500’s 0.27 percent gain.
