Harley-Davidson Inc. announced plans to overhaul its business, as the COVID-19 epidemic dragged the company to losses in three months through June.
Harley reported a second-quarter loss of $ 92 million, or an adjusted 35 cents per share, sinking 7 percent year-over-year as revenue – $ 65 million. Wall Street analysts surveyed by Refinitive were estimated to have adjusted earnings of 4 cents per share on revenue of $ 808.46 million.
“Total rewires are necessary to make Harley-Davidson a high-performance company,” CEO Jochen Geitz said in a statement.
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The Milwaukee-based motorcycle manufacturer’s five-year strategic plan, dubbed The Hardweed, will include extensive changes to Harley’s operating model, updating the company’s iconic motorcycles, adding new products to the mix, and parts and The focus will be on accessories and general merchandise businesses.
The plan, teased with the company’s first quarter results, will include new product launches starting in August until the beginning of the year and collaborating with influencers to reach new buyers.
A new marketing campaign focusing on Harley’s “incredible spirit” will include collaborations with actor Jason Momoa, who has appeared in TV and film hits from “Aquaman” to “Game of Thrones” and “Stargate: Atlantis” .
Harley-Davidson will focus on 50 markets, the majority in North America and Europe but also in parts of Asia. The company is working on plans to exit markets where volume and profitability do not support further investment.
Rewire, Harley’s pre-course-improvement plan that will continue until the end of 2020, will result in $ 250 million in savings this year and $ 100 million in annual savings thereafter. The plan has reduced global inventories by 32 percent and resulted in higher motorcycle prices.
Harley did not provide financial guidance due to the uncertainty of COVID-19.
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Shares fell 21 percent on Monday this year, which is worse than the S&P 500 gain of 0.27 percent.