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MILWAUKEE - Harley-Davidson, Inc. (NYSE: HOG) has confirmed that it is actively searching for a new Chief Executive Officer, as part of its succession planning. The process began in the fourth quarter of 2024 following the current CEO Jochen Zeitz's indication of his intent to retire in 2025 after a five-year tenure, contingent on the appointment of a suitable successor. Zeitz will continue in his role until a new CEO is appointed to ensure a smooth transition. The announcement comes as the company's stock has experienced a significant 32% decline over the past six months, trading at $22.78, according to InvestingPro data.
During his time as CEO, Zeitz has been credited with significant contributions to the company, including the development and execution of the Hardwire, Harley-Davidson's five-year strategic plan, revitalizing the brand, and leading the company through challenging times. Under his leadership, the company has maintained a strong dividend program, with 33 consecutive years of dividend payments and a current yield of 3.16%.
Harley-Davidson, the iconic American motorcycle manufacturer, has been a leading name in the industry since 1903. Known for its distinctive and customizable motorcycles, the company also offers a range of experiences, accessories, riding gear, and apparel. Harley-Davidson Financial Services provides financing, insurance, and other programs to support riders. The company currently trades at an attractive P/E ratio of 6.59, with a strong free cash flow yield. InvestingPro analysis reveals 12 additional key insights about the company's financial health and market position.
The company also holds a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the United States, which is seen as a key player in the urban electric mobility sector.
The Board of Directors of Harley-Davidson has expressed its gratitude to Mr. Zeitz for his leadership and contributions. The search for a new CEO is being conducted with the assistance of a leading executive search firm. The company's ambition remains to be the most desirable motorcycle brand in the world, as it continues to innovate and evolve.
This information is based on a press release statement from Harley-Davidson, Inc.
In other recent news, Harley-Davidson reported a fourth-quarter loss for 2024, with earnings per share at $0.93, falling short of the anticipated $0.66 loss. Revenue for the quarter decreased by 35% to $688 million, missing the consensus estimate of $712 million. The company's motorcycle segment experienced a significant 47% decline in revenue, and global motorcycle shipments dropped 53% year-over-year. In addition to these earnings results, Harley-Davidson announced a quarterly dividend of $0.18 per share for the first quarter of 2025, reflecting its commitment to shareholder value.
Citi analysts have adjusted their outlook on the company, reducing the price target to $28 from $29, while maintaining a Neutral rating, citing concerns about the company's guidance and retail environment challenges. DA Davidson, however, reiterated a Buy rating with a $31 price target, noting Harley-Davidson's strategic plans, including reducing dealer inventories by 30% in the first half of 2025. The differing analyst opinions highlight the mixed sentiment surrounding Harley-Davidson's future performance amidst recent financial challenges.
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