American motorcycle manufacturing company Harley-Davidson (NYSE:HOG) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 23.1% year on year to $1.33 billion. Its non-GAAP profit of $1.07 per share was 38.7% above analysts’ consensus estimates.
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Harley-Davidson (HOG) Q1 CY2025 Highlights:
StockStory’s Take
Harley-Davidson’s first quarter results reflected the challenges of a soft motorcycle market, with revenue missing Wall Street expectations due to lower sales volumes, especially in North America. CEO Jochen Zeitz attributed much of the shortfall to weak consumer confidence and the ongoing macroeconomic uncertainty, while also highlighting efforts to maintain tighter dealer inventory levels and a strong product mix. Zeitz said, “Global retail sales were down 21% in Q1 and down 24% in North America, softer than we expected primarily in the US market, driven by historically low levels of consumer confidence.”
Looking forward, management withdrew its previous 2025 financial guidance, citing the unpredictable tariff environment and persistent economic headwinds. Zeitz emphasized the company’s cautious approach, stating, “We are withdrawing our previous 2025 guidance until there is more clarity over economy and tariff landscape.” Harley-Davidson plans to focus on cost controls, new product launches, and supply chain adjustments, but management made clear that macro and policy uncertainty remain the main factors influencing its near-term outlook.
Key Insights from Management’s Remarks
Harley-Davidson’s leadership focused on managing through a challenging demand environment and highlighted several business adjustments to address ongoing volatility.
Drivers of Future Performance
Management’s outlook emphasizes caution, with near-term performance hinging on macroeconomic conditions, tariff developments, and the impact of strategic product and operational changes.
Top Analyst Questions
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will focus on (1) the effectiveness of Harley-Davidson’s new product introductions and their reception among new and existing riders, (2) the company’s ability to further reduce dealer inventory without sacrificing revenue, and (3) developments in the tariff and trade policy environment that may affect costs and profitability. Progress on cost reductions and clarity on HDFS’s future will also be key to assessing execution.
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