Harley-Davidson has revised its full-year revenue forecast downward, citing ongoing inflation and a decline in demand following a consumer boycott that influenced its decision to discontinue diversity, equity, and inclusion (DEI) programs. The company reported a 10% decline in sales within North America and now anticipates a 16% to 17% reduction in full-year global shipments, compared to an earlier prediction of a 7% to 10% decline.
The motorcycle manufacturer also adjusted its projection for annual retail sales, expecting a 6% to 8% decline, contrary to its initial estimate of flat to 3% growth. Revenue from motorcycles and related products is now expected to decrease by 14% to 16%, whereas the previous forecast projected a 5% to 9% drop.
Jochen Zeitz, CEO of Harley-Davidson, stated that the company has made significant efforts to alleviate the impacts of high interest rates, as well as macroeconomic and political uncertainties, which persist in affecting the industry and its core markets.
Following the announcement coinciding with its earnings release, Harley-Davidson’s shares experienced a decline of over 3% on Thursday but rebounded by approximately 2% during Friday morning trading. As of now, the company’s stock has decreased roughly 15% over the past month and 11% year-to-date.
Earlier this year, Harley-Davidson encountered pressure from anti-DEI activists, including social media influencer Robby Starbuck, who highlighted some of the company’s internal policies in July. In August, the company issued a statement renouncing DEI initiatives, confirming that such efforts had been discontinued since April 2024.
The statement emphasized the company’s commitment to hiring and retaining top talent while ensuring an inclusive environment for all employees. Harley-Davidson clarified that it had neither operated a DEI function since the stated period nor maintained any hiring quotas or supplier diversity spending goals.
Furthermore, the company is reassessing its employee training initiatives and sponsorships while aiming to enhance its focus on the most dedicated customers. Harley-Davidson aims to promote the sport of motorcycling and retain its loyal riding community, alongside supporting first responders, active military members, and veterans.
Harley-Davidson is among several major companies, including Caterpillar, Ford, John Deere, Tractor Supply, Lowe’s, and Molson Coors, to have scaled back DEI initiatives over the past year.
