Harley-Davidson cut its full-year revenue forecast as persistent inflation and weak demand in the wake of a consumer boycott that spurred it to drop diversity, equity and inclusion (DEI) programs took a toll on its balance sheet.
The motorcycle maker said its sales in North America were down 10% and that it expects its full-year global shipments to be down 16% to 17%, compared with its prior forecast of a 7% to 10% decline.
Harley-Davidson projected that its annual retail sales would be down 6% to 8%, after it previously expected sales would be flat to up by 3%. It now projects revenue from motorcycles and related products will be down 14% to 16% compared with its prior estimate of down 5% to 9%.
"We have worked diligently through the quarter to mitigate the impact of high interest rates, and macroeconomic and political uncertainty, that continue to put pressure on our industry and customers, especially in our core markets," said Harley-Davidson CEO Jochen Zeitz.
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Harley-Davidson shares dipped over 3% on Thursday when the announcement was made in conjunction with its earnings release – though it rebounded about 2% during Friday morning trading. Its stock is down about 15% in the last month and 11% year to date.
The company's sales slump comes after it faced pressure earlier this year from anti-DEI activists, including social media influencer Robby Starbuck, who exposed several of the company's controversial internal policies in July.
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In August, Harley-Davidson released a statement renouncing DEI initiatives that it said it had abandoned earlier in the year.
"It is critical to our business that we hire and retain the best talent and that all employees feel welcome," the statement read. "That said, we have not operated a DEI function since April 2024, and we do not have a DEI function today. We do not have hiring quotas and we no longer have supplier diversity spend goals."
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The company also said it was reassessing employee training initiatives and sponsorships while refocusing on its most loyal customers.
"As a consumer brand, we will focus exclusively on growing the sport of motorcycling and retaining our loyal riding community, in addition to the support we already provide to first responders, active military members and veterans," Harley-Davidson's statement read.
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Several other prominent companies have rolled back DEI initiatives in the past year, including Caterpillar, Ford, John Deere, Tractor Supply, Lowe's and Molson Coors.
FOX Business' Kerry Byrne and Reuters contributed to this report.
