Jennifer Sey, a former senior marketing executive at Levi Strauss & Co., explained on The Big Money Show why some of America's largest companies are retreating from DEI practices.
Harley-Davidson has lowered its full-year sales forecast due to weak demand due to persistent inflation and consumer boycotts. Diversity, Equity, and Inclusion (DEI) The program has hit the balance sheet hard.
The motorcycle maker said it expects North American sales to decline 10% and full-year global shipments to decline 16% to 17%, compared with previous expectations of a 7% to 10% decline. .
Harley Davidson is projected The company's annual retail sales were expected to be flat to 3% higher, but are now expected to decline 6% to 8%. The company now expects revenue from motorcycles and related products to decline 14% to 16%, compared to its previous forecast of a 5% to 9% decline.
Harley-Davidson CEO Jochen Zeitz said, “Throughout the quarter, we were exposed to high interest rates and macroeconomic and political uncertainties that continue to put pressure on our industry and customers, particularly in our core markets.'' “We have worked diligently to reduce the impact of this.”
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Harley-Davidson faces headwinds with consumers amid inflation, high interest rates and the DEI controversy. (Photo by Gary Hershawn/Getty Images/Getty Images)
Harley-Davidson stock fell more than 3% on Thursday after the announcement. earnings release – However, it rebounded by about 2% in Friday morning trading. The company's stock price has fallen about 15% in the last month and 11% since the beginning of the year.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| pig | Harley-Davidson Co., Ltd. | 33.05 | +0.85 |
+2.66% |
The company's sales slump comes after it came under pressure earlier this year from anti-DEI activists, including: social media Influencer Robbie Starbuck exposed some of the company's controversial policies in July.
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Harley-Davidson has lowered its full-year sales forecast due to weak demand. (Photo courtesy of Plexi Images/GHI/Universal Images Group via Getty Images / Getty Images)
In August, Harley-Davidson issued a statement abandoning its DEI efforts, which it said it had abandoned earlier this year.
“Hiring and retaining the best talent and making sure all employees feel welcome is critical to our business,” the statement said. “That said, we have not operated a DEI function since April 2024, and we currently do not have a DEI function. We have no hiring quotas and no spending targets for supplier diversity.”
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Harley-Davidson announced in August that it had abandoned its DEI policy earlier this year. (Artur Widak/NurPhoto via Getty Images / Getty Images)
The company also said it is reevaluating its employee training plans and sponsorships, while refocusing on its most loyal customers.
“As a consumer brand, Harley-Davidson is committed to growing the sport of motorcycles and sustaining our loyal equestrian community, in addition to the support we already provide to first responders, active duty military, and veterans,” Harley-Davidson said in a statement. are.
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Caterpillar, Ford, John Deere, Tractor Supply, Lowe's, and Molson Coors.
FOX Business' Kerry Byrne and Reuters contributed to this report.
