Harley-Davidson on Thursday suspended its full-year forecast as President Trump's tariffs fuelled economic uncertainty.
“We are withdrawing our financial outlook for 2025 due to uncertainty in the global tariff and macroeconomic situation,” the motorcycle manufacturer said in a statement.
The company estimated that the tariff bill could reach $175 million this year, despite most of its suppliers being in the US.
Its global motorcycle sales plummeted 21% compared to the previous year, driven by a volatile macroeconomic environment and overall consumer uncertainty.
While the automaker enjoyed a rush of sales as customers rushed to buy cars ahead of tariff-induced prices, Harley-Davidson saw consumers keeping their innocence and splurge.
It reported softer than expected retail sales in the US, with 24,865 motorcycle shipments in the three months ended March 31st, compared to 41,577 in the same period last year.
Revenue fell 23% in the first quarter to $1.33 billion compared to the previous year
The company will now focus on measuring cost productivity, mitigating supply chains, strict operating expenses management and slimming inventory at dealers, according to CEO Jochen Zeitz.
Harley-Davidson shares had risen 3.4% by 12:10pm ET.
Data released Wednesday showed that the US economy had unexpectedly shrunk as businesses rushed to import goods before tariffs.
Meanwhile, consumer sentiment has plummeted to its lowest level since October 2011, and since October 2011, as there is fear that the world trade war could reheat inflation and even cause a recession, according to a monthly survey by the Congress Committee.
Meanwhile, Harley Davidson is looking for a new CEO after Zeitz said he plans to retire in April.
Investment company H Partner is fighting to kick Zeitz and two other longtime directors from the Harley board at its annual general meeting later this month. According to the Wall Street Journal.
Partner H claims that the three board members are responsible for Harley's poor performance and “cultural depletion.”
Harley says H Partner is trying to orchestrate CEO alternatives because their candidates are not supported by the board.
