By John Keilman and Denny Jacob
Harley-Davidson withdrew its sales and profit forecast for the year, blaming uncertainty over tariffs and the broader economy.
The motorcycle maker said Thursday that slowing demand pushed its global motorcycle shipments 33% lower in the first quarter. Global retail motorcycle sales fell 21% from the prior year due to high interest rates and low consumer confidence, the company said.
Harley reported slowing sales and profit as it squares off against an activist investor that aims to shake up its board. Chief Executive Jochen Zeitz said Harley is responding to the tough economic environment with supply-chain mitigation and reduced dealer inventory, among other measures.
Harley's earnings were still better than Wall Street had projected. The company recorded a net income of $133 million, or $1.07 a share, compared with $235 million, or $1.72 a share, in the prior-year period. Analysts expected 78 cents a share, according to FactSet.
First-quarter revenue from the sale of bikes and accessories declined 27% to $1.08 billion from $1.48 billion. Analysts polled by FactSet expected $1.11 billion.
Harley's shares were little changed in premarket trading.
Harley is seeking a new CEO after Zeitz said in April he plans to retire after five years on the job. He helped boost Harley's profit during his tenure, but sales of the company's bikes have continued to decline as the brand struggles to resonate with a younger generation of riders.
Investment firm H Partners has urged Harley shareholders to remove Zeitz and two other longstanding directors from Harley's eight-member board at the annual meeting in mid-May, The Wall Street Journal reported in April. The firm argues that the three are accountable for poor performance and "cultural depletion."
Harley has said H Partners, whose former representative on the board quit before launching the proxy fight, is spitefully trying to dictate the CEO's replacement after its candidate didn't get sufficient support from the board.
H Partners didn't immediately comment on Harley's first-quarter results.
Write to John Keilman at john.keilman@wsj.com and Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
May 01, 2025 08:49 ET (12:49 GMT)
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