Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the expected inventory reduction in the first quarter and its impact on revenue? A: Jonathan Root, CFO, explained that they anticipate a more than 30% reduction in inventory in the first half of the year, with a focus on managing dealer inventory levels. This will result in a decrease in wholesale shipments in the first half, with a more pronounced impact in the first quarter compared to the second half of the year.
Q: What were the main factors affecting margins in Q4, and how do you view retail sales for 2025? A: Jonathan Root, CFO, noted that Q4 margins were impacted by lower volumes, unfavorable mix, and manufacturing costs. For 2025, they expect retail sales to be flat, with a stronger performance in the second half due to new product innovations and continued interest in the touring segment.
Q: How do you expect operating margins to improve in 2025 despite flat to slightly down revenue guidance? A: Jonathan Root, CFO, indicated that they anticipate slight pricing improvements and better cost management, including lower operating expenses, which will help improve margins. They also expect less unfavorable impact from manufacturing costs compared to 2024.
Q: What is the outlook for international markets in 2025? A: Jonathan Root, CFO, stated that they expect international markets to be relatively flat overall. While some regions like Asia Pacific may see slight growth, others, such as Europe, may face challenges due to macroeconomic conditions.
Q: How is Harley-Davidson managing the LiveWire business given the current demand for electric motorcycles? A: Jochen Zeitz, CEO, mentioned that they are focused on reducing operating losses and cash burn for LiveWire. They are evaluating the business's performance and considering mid- to long-term strategies, including potential product portfolio adjustments, to improve profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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