Harley-Davidson Reboots Business as Coronavirus Hammers Earnings
Harley-Davidson Inc (HOG.N) on Tuesday revealed a strategy to restructure its business after reporting an unexpected quarterly loss due to disruptions caused by the coronavirus pandemic.
As part of its “Rewire” strategy, the company will streamline its planned product portfolio by about 30% and focus on 50 markets with growth potential in North America, Europe, and parts of Asia Pacific.
Harley reported a loss of 60 cents per share for the quarter through June, compared with a profit of $1.23 per share a year ago. Analysts had on average expected the profit to come in at 4 cents per share, according to IBES data from Refinitiv.
Motorcycles and related products revenue dived 53% year-on-year to $669 million, hurt by the temporary suspension of production during the quarter due to lockdowns to curb the spread of the new coronavirus.
Retail sales in the United States, its biggest market, plunged 27% year-on-year, the steepest fall in at least six years.