Harley-Davidson on Thursday suspended its full-year forecast as President Trump’s tariffs gasoline financial uncertainty.
“Due to the uncertain global tariff situation and macroeconomic conditions, we are withdrawing our full year 2025 financial outlook,” the motorbike maker mentioned in a press release.
The corporate estimated its tariff invoice may attain $175 million this yr, despite the fact that most of its suppliers are within the US, as a result of it nonetheless imports elements from China, which face a hefty 145% tariff.
Its international motorbike gross sales plunged 21% in comparison with the yr earlier than, “driven by a volatile macroeconomic environment and overall consumer uncertainty,” the corporate mentioned.
Whereas automakers loved a rush of gross sales, as prospects hurried to purchase automobiles forward of any tariff-induced value hikes, Harley-Davidson noticed shoppers maintain again on non-necessities and splurges.
It reported softer-than-expected retail gross sales within the US, with motorbike shipments of 24,865 within the three months ended March 31 – in comparison with 41,577 in the identical interval final yr.
Income fell 23% within the first quarter to $1.33 billion in comparison with the earlier yr
Transferring ahead, the corporate is targeted on price productiveness measures, provide chain mitigation, tight working expense management and slimming down stock at sellers, in response to CEO Jochen Zeitz.
Shares in Harley-Davidson jumped 3.4% by roughly 12:10 p.m. ET.
Information launched on Wednesday confirmed the US economic system unexpectedly shrank as corporations rushed to import items forward of the tariffs.
Shopper sentiment final month, in the meantime, plunged to its lowest stage since October 2011 as fears that the worldwide commerce conflict may reheat inflation and even set off a recession grew, in response to a month-to-month survey by the Convention Board.
Harley-Davidson, in the meantime, is on the hunt for a brand new CEO after Zeitz mentioned in April that he plans to retire.
Funding agency H Companions has been preventing to kick Zeitz and two different longtime administrators from Harley’s board at its annual assembly later this month, in response to The Wall Avenue Journal.
H Companions has argued the three board members are accountable for Harley’s poor efficiency and “cultural depletion.”
Harley has mentioned that H Companions is attempting to orchestrate the CEO’s substitute out of spite, after its personal candidate didn’t obtain assist from the board.
