Why Is Motorcycle Manufacturer Harley-Davidson's Stock Rising Today?

Harley-Davidson Inc (NYSE:HOG) shares are trading higher on Thursday after the first-quarter FY25 earnings.

The company reported a first-quarter 2025 sales decline of 23% year-on-year to $1.33 billion, beat the analyst consensus estimate of $1.1 estimate.

Global motorcycle retail sales down 21% year-over-year, driven by a volatile macroeconomic environment and overall consumer uncertainty.

Revenue from the Motorcycles and Related Products segment (HDMC) decreased 27% to $1.08 billion, driven primarily by the planned decrease in wholesale shipments and unfavorable foreign currency.

First-quarter global motorcycle shipments decreased by 33%, reflecting the softer-than-expected demand environment.

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Harley-Davidson’s earnings per share of $1.07 beat the consensus of 79 cents.

Revenue from Motorcycles fell 29%, Parts & Accessories dropped 14%, Apparel dropped 11%, and Licensing plunged 66%.

The gross profit margin in HDMC contracted 210 basis points Y/Y to 29.1%.

Consolidated operating income declined 39%. Operating income from HDMC plunged 51% Y/Y to $116 million.

Harley-Davidson generated $142 million in cash from operating activities in he quarter. It held cash and equivalents of $1.9 billion as of March 31.

Harley-Davidson CEO Jochen Zeitz said “retail sales in the U.S. came in softer than anticipated.”

The company remains focused on the “tariff environment” through cost productivity measures, supply chain mitigation, tight operating expense control and reducing dealer inventory.

Outlook: Due to the uncertain global tariff situation and macroeconomic conditions, the company has withdrawn full year 2025 financial outlook from February 5, 2025.

Price Action: HOG shares traded higher by 4.77% at $23.48 at last check on Thursday.

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