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On April 27, 2023, Harley-Davidson introduced its 2023 Q1 monetary outcomes on an earnings name. Consolidated income was up 20 % over the identical interval in 2021, protecting reporting from all three of the Motor Firm’s reporting segments: Harley-Davidson Motor Firm (HDMC), Harley-Davidson Monetary Companies (HDFS), and LiveWire. HDMC consists of the model’s bikes, components and equipment, attire, and licensing; HDFS covers financing for each Harley and LiveWire bikes; LiveWire consists of LiveWire electrical bikes, in addition to StaCyc stability bikes.
Whereas consolidated revenues have been up, diving into motorbike gross sales tells a distinct story. For these unfamiliar, Harley-Davidson data motorbike shipments and motorbike gross sales as separate ideas and numbers. It’s price hanging onto that differentiation in your thoughts after we get to LiveWire reporting, as nicely.
For Q1 2023, Harley-Davidson Retail Motorbike Gross sales have been down as in comparison with Q1 2022 ends in nearly each international market apart from Asia Pacific, the place it confirmed modest gross sales progress.
In North America—the corporate’s greatest single market—Harley offered 26,000 bikes in Q1 of 2023, as in comparison with 31,200 in Q1 of 2022, recording a drop of 17 %. In Europe, the Center East, and Africa (EMEA), Q1 2023 gross sales have been 5,900, which represents a drop of 6 % in contrast with the 6,300 bikes it offered in Q1 2022.
Over in Asia Pacific, it offered 6,900 bikes in Q1 of 2023, which represents a 3 % rise over the 6,700 bikes it offered within the area in Q1 of 2022. Transferring over to Latin America, it offered 600 bikes in Q1 of 2023, as in comparison with the 800 it offered in Q1 of 2022. That represents a 25 % lower in gross sales year-on-year in that market. Whole international retail motorbike gross sales added as much as 39,400 bikes offered in Q1 of 2023, as in comparison with 45,000 in Q1 of 2022—a drop of 12 % in worldwide gross sales for the quarter year-on-year.
Bear in mind how we talked about that Harley data shipments individually from gross sales in its reporting? Over within the LiveWire section, the one numbers that Harley gives are cargo numbers—not gross sales numbers. In Q1 of 2023, a complete of 63 LiveWire One bikes have been shipped (no zeros lacking, that’s 63 complete bikes). Again in Q1 of 2022, a complete of 97 LiveWires have been shipped, together with 72 LiveWire Ones and 25 Harley-Davidson LiveWires (this was through the transitional naming interval for the corporate because it shifted identities). That marks a drop of 35 % in LiveWire shipments 12 months on 12 months.
LiveWire’s income decreased by 25 % for Q1 of 2023 as nicely, which the corporate attributes to decrease gross sales of each its core LiveWire bikes and in addition the StaCyc stability bikes for teenagers. It additionally reported an working lack of $25 million, which it attributes each to improvement prices and the final bills concerned with beginning a brand new group and spinning LiveWire off from its mum or dad firm.
Whereas these numbers are detrimental within the brief time period, they nonetheless fall consistent with the corporate’s acknowledged 2023 monetary outlook steering. Over the course of the 12 months, it’s aiming for between 750 and a couple of,000 LiveWire gross sales and a complete yearly working lack of between $115 and $125 million because it continues to develop and set up itself available in the market. Will probably be fascinating to see how LiveWire’s new presence in a number of European nations impacts its general gross sales.
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