Key points
- Harley-Davidson’s motorcycle shipments were down 10% year-over-year, but sales rose in North America, Asia Pacific, and Latin America.
- LiveWire shipments were down 85% year-over-year, and the company has revised its sales guidance for the year to 600-1,000 units.
- Harley-Davidson attributes the decrease in motorcycle shipments to an unplanned production stoppage in May 2023.
- The company is expanding in Europe and is rolling out the more affordable S2 Del Mars to customers, which could help to boost sales in the coming quarters.
In Q2 of 2023, Harley-Davidson’s various arms had mixed results.
Motorcycle Shipments:
- The MoCo (Harley-Davidson) reported worldwide motorcycle shipments of 42,900 bikes in Q2 of 2023, which was a decrease of 10% compared to the 47,900 shipped in the same period in 2022.
- This decrease was attributed to an unplanned production stoppage occurred in May 2023.
Motorcycle Sales:
- In North America, Asia Pacific, and Latin America, motorcycle sales rose during Q2 of 2023.
- In the combined area of Europe, the Middle East, and Africa (EMEA), sales dropped by 6 %.
- Asia Pacific had the most significant growth, with sales rising by an impressive 24 % year-on-year. They sold 7,500 bikes in Q2 of 2023 compared to 6,000 sold in Q2 of 2022.
- Overall, global motorcycle sales (excluding LiveWire) rose by 3 % for Q2 of 2023.
LiveWire (Electric Motorcycle Unit):
- LiveWire, the separate business entity includes StaCyc electric balance bikes, reported motorcycle shipments of 33 units in Q2 of 2023. This was a significant 85 % drop from the 225 units shipped in Q2 of 2022.
- LiveWire’s sales guidance for the entirety of the 2023 fiscal year has been revised, and they are now aiming for “motorcycle unit sales of 600 to 1,000.”
However we will need to see if LiveWire will meet or exceed its revised sales goals for the year. The company’s expansion in Europe and the introduction of more affordable S2 Del Mars to the market might influence its future performance.
The Q2 2023 financial results have both positive and negative implications for Harley-Davidson:
Positive Impacts:
- Motorcycle Sales Growth in Key Regions: Harley-Davidson experienced sales growth in North America, Asia Pacific, and Latin America. The 24 % increase in Asia Pacific is particularly notable, indicating strong demand in the region.
- Global Motorcycle Sales Growth: Overall, global motorcycle sales (excluding LiveWire) rose by 3 %in Q2 of 2023. This growth indicates Harley-Davidson’s core business is still able to attract customers in certain markets.
Negative Impacts:
- Declining Motorcycle Shipments: Harley-Davidson’s worldwide motorcycle shipments decreased by 10 % in Q2 2023 compared to the same period in 2022. This drop in shipments is concerning as it indicates a potential decrease in future sales if not addressed.
- LiveWire’s Poor Performance: The LiveWire unit, which represents Harley-Davidson’s electric motorcycle business, reported a significant 85 % drop in shipments compared to Q2 2022. This poor performance could have a negative impact on the company’s overall financials and reputation in the electric motorcycle market.
- Unplanned Production Stoppage: The 10 % decrease in motorcycle shipments in Q2 2023 was attributed to an unplanned production stoppage in May 2023. Such production disruptions can lead to inefficiencies and financial losses for the company.
- Sales Guidance Revision: LiveWire’s revision of its sales guidance for the entirety of 2023 indicates the company is facing challenges in meeting its initial sales targets. This could raise concerns among investors and stakeholders about the overall growth prospects of the electric motorcycle segment.
Conclusion
The mixed results indicate Harley-Davidson is facing both opportunities and challenges in its motorcycle business, including the performance of its electric motorcycle arm, LiveWire. To maintain and improve its financial position, Harley-Davidson may need to address the production disruptions, focus on strengthening its electric motorcycle offerings, and continue to capitalize on growth opportunities in key markets like Asia Pacific.
Additionally, the success of the more affordable S2 Del Mars and the company’s expansion efforts in Europe will play a crucial role in shaping its future performance.
