Harley-Davidson, Inc. reported a significant decline in financial performance for the first quarter of 2025, with net income attributable to the company falling to $133.1 million, or $1.07 per diluted share, compared to $234.9 million, or $1.72 per diluted share, in the same period last year. The company's total revenue decreased to $1.33 billion from $1.73 billion, reflecting a 23% drop. The decline was primarily driven by a 21.3% decrease in worldwide retail sales of new motorcycles, attributed to reduced consumer sentiment amid economic uncertainty and high interest rates.
The Harley-Davidson Motor Company (HDMC) segment experienced a notable operating income decline of 51.2%, down to $116.3 million from $238.4 million in the prior year. This decrease was largely due to a planned reduction in motorcycle shipments, which fell by 33.1% to 38,601 units. The LiveWire segment also reported an operating loss of $19.8 million, although this was an improvement from the $29.2 million loss recorded in the previous year. In contrast, the Harley-Davidson Financial Services (HDFS) segment saw an increase in operating income to $64.0 million, up from $53.9 million, driven by a lower provision for credit losses and reduced operating expenses.
In terms of operational metrics, the company reported a decline in customer engagement, with retail sales down across all major regions, including a 24% drop in North America and a 27.7% decrease in the Asia-Pacific region. The company's market share for new motorcycles over 601cc also fell, with U.S. market share decreasing from 41.6% to 36.2%. The company has been actively managing dealer inventory levels, which were approximately 56,000 units at the end of the quarter, down 19% from the previous year.
Looking ahead, Harley-Davidson has withdrawn its forward-looking guidance for 2025 due to uncertainties related to tariffs, interest rates, and consumer demand. The company plans to continue its cost productivity initiatives, aiming for annual savings of $100 million in 2025 and 2026. Additionally, Harley-Davidson is evaluating a potential investment in HDFS to enhance its value and secure long-term funding options. The company remains committed to its strategic initiatives, including the introduction of new motorcycle models and a shift in the timing of annual launches to better align with retail opportunities.
About HARLEY-DAVIDSON, INC.
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