On February 2, 2023, Harley-Davidson announced its full 2022 financial results, as well as its Q4 2022 results. How did the year pan out for the Motor Company?
The fourth quarter of 2022 saw the Motor Company ship (not sell) 34,000 motorcycles, which represents an 18 percent increase over the 28,900 units shipped in Q4 2021. That contributed to a full-year shipment number of 193,500 bikes, as compared to the 188,000 shipped over the course of 2021. Overall, motorcycle shipments increased by three percent at the end of 2022.
With the official spinoff of LiveWire into its own unit early in the year, Harley-Davidson now divides its reporting into three segments: Harley-Davidson Motor Company, Harley-Davidson Financial Services, and LiveWire (which includes STACYC electric balance bikes). If referring to all three segments together, the appropriate corporate entity name is now listed as Harley-Davidson, Incorporated.
How did actual motorcycle sales break down by global region? Over the course of 2022, global Harley-Davidson motorcycle sales (excluding LiveWire) fell slightly. In North America, 19,200 bikes were sold in Q4 2022, as compared to 19,500 in Q4 2021. In Europe, the Middle East, and Africa (EMEA), 6,600 bikes were sold in Q4 2022, up one percent over the 6,500 sold in Q4 2021. The Asia-Pacific region saw the greatest jump in sales in Q4 of 2022, with 7,500 bikes sold, as compared to the 6,800 sold in Q4 of 2021. Finally, in Latin America, Q4 2022 sales saw 600 bikes sold, as compared to 1,000 in Q4 of 2021.
For 2022 overall, Harley-Davidson sold 117,100 new bikes in North America, down by 12 percent as compared to the 133,700 sold in 2021. In EMEA, the MoCo sold 30,500 bikes in 2022, down by one percent as compared to the 30,900 sold in 2021. Over in the Asia-Pacific region, it sold 27,900 bikes in 2022, up 12 percent over the 25,000 sold in 2021. Finally, in Latin America, it sold 2,900 bikes in 2022, down by 20 percent as compared to the 3,700 bikes sold in 2021. Worldwide, Harley-Davidson reported 2022 bike sales that were down by eight percent, year on year.
What about LiveWire, since it’s now reported separately? In Q4 of 2022, a total of 69 units were shipped. That’s 63 percent fewer units than the 186 that were shipped in Q4 of 2021. Reported revenue was $9 million, down 28 percent over the $13 million reported in Q4 of 2021. However, the year-end results tell a different story.
Overall, LiveWire shipped 597 units throughout the course of 2022, up 30 percent over the 461 it shipped in 2021. Yearly revenue also increased to $47 million in 2022, up by 31 percent over the $36 million reported at the end of 2021. Sales figures were unspecified.
For this reporting period, LiveWire continued to report operating losses, both in Q4 of 2022 and for the entire year of 2022. Understandably, it attributes these numbers to product development and talent investment costs. These losses increased from $20 million in Q4 2021 to $29 million in Q4 2022, and from $68 million for the full year of 2021 to $85 million in 2022. Harley annotates both these comparisons as “not meaningful” in its results reporting, as it is considered “support[ing] the new company.”
Harley also offered its 2023 outlook during this presentation, with expectations of modest growth for HDMC, an increase in LiveWire units shipped to between 750 and 2,000 bikes, and a LiveWire operating loss window of between $115 million and $125 million. It also predicts a return to a “historically healthy profitability level” in the coming year.
The MoCo lists its Hardwire Stage II strategy pillars as 1) Profit focus, 2) Selective expansion and redefinition, 3) Lead in electric, 4) Growth beyond bikes, 5) Integrated customer experience, and 6) Inclusive stakeholder management. This is the phase of the Hardwire Strategy that the company says that it’s currently in.
Source: Harley-Davidson2023-02-02T20:05:51Z dg43tfdfdgfd