Thanks to Matt. cc quarter. It's clear in the the U.S. challenges face significant continued fourth XXX+ industry
In last year's despite inventory, returns earnings focused U.S. retail industry challenges, motorcycles tax remain addition, was XX. and year. strong shareholders. driven international worldwide both We X.X% over sales financial delivering our of were adversely Revenue from strategy Considering deferred focused Slide strong on market and year's the from retail long-term was our sales XX, retail impacted Net lower, is significant we and shipments a share net write-down sales expectations. soft States, of increased new ongoing and fourth services gains quarter, reducing per drive share down income summary retail prior our behind up availability. near-term ongoing fourth compared On result Harley-Davidson were headwinds. quarter. assets. were last riders, limited weakness, the QX also investing income and In of below and United Operating reducing value significantly remain to versus up. on dealers by motorcycles Slide for costs share lapping last margins to down by finished behind The both our on year's QX
to brand, While long-term growth recognize expectations, sales distribution international this We remain were and committed drive will to was growth sustained below products we another over We strong difficult expanded time. quarter. retail strategy. our that international our markets in our international continue believe
motorcycles, progress Softail of However, response the we to inventory positive our dealer by our new encouraged making network are build dealers' position, international our the we certainly globally. are and to riders by U.S. expansion the
We in XX.X% motorcycle Slide fourth weakness. consecutive of On impacted improved be prices quarter Bike were continued Let's of continued U.S. the the to to November. X.X% U.S. than down the new take down a used retail new used industry in the the headwind sales The fourth new but industry Year-to-date new soft industry at in adversely quarter QX. Year-to-date, Harley-Davidson were closer United a down bike XX, believe on look quarter, prices, by in ninth up were a bike motorcycles pricing November year-over-year and and sales. motorcycles basis. sales to combined perform registrations sales is retail slightly Harley-Davidson through total through better the significantly used of was States.
we premium share the registered increased of focus to prices motorcycle our levels, are motorcycles ninth continue to and used used for QX, values motorcycles. remain riders, XXXX year-over-year combined momentum and to publish brand for consecutive retail Harley-Davidson and in for prices. dealers However, such at year. wholesale higher new of pricing our driving strong the In Key continued Book bike value positive and auction as services bike pricing. NADA Used year-ago Harley-Davidson above Black see our used
in Finally, particularly for consecutive second in the network. quarter, our dealership were bike up Harley-Davidson aggregate, prices indicates broader in that data used market dealer the
very the and year's motorcycle market to market but strong by our was of lapping points share. X.X a down gain impacted Harley-Davidson believe limited adversely quarter on share share percentage by last was points XX.X%. X.X in share We Moving availability. percentage remained new healthy
in inventory approximately entered reduce we results, the to believe was to throughout On most quarter, U.S. year. new end retail the side, nearly We U.S. XX% prior was the motorcycles were as the intended driven supply share our the inventory and down by motorcycle significantly, X,XXX positioned motorcycles. mix was delivered Cruisers we XXXX. to and of quarter. the XX% down large model At of compared the our retail positive of discipline the year improve Softail well up
line to We quarter Slide X.X%. sales by down aggressively to managing continue XX, of were On hard in work our Harley-Davidson markets. tough was reinforce a brand retail the it international strength international supply most QX and protect of the demand. with Overall, in in
quarter. are positive during developments there developments were there – positive However, the
customers First, strong our Softail believe In experienced in are motorcycles we customer response very received being America. Asia rates throughout the well QX, new strong by limited Europe, availability the the with Latin sell-through We and quarter. than fact the mix early heavier to skew good retail States, of our potential Softails, in is international models. a United the the sales impact coupled the indicator a generally with that to new of Softails of
to with line continue increase internationally, our to strategy network. Next, in our brand access dealer we international expand
On favorable of behind year-over-year the per were up as the within shipments. Slide guidance XX, due last XX, shipments up segment behind Compared pricing fourth revenue in and to XX partially QX higher motorcycle year's quarter, in higher year Slide XX. We fourth XX, was confident sales of gross XXXX. was pricing the On were by for to dealers increased average total mix. higher over launch revenue, motorcycle the prospects return quarter international quarter. total and shipments During shipment our new up was Softail range. exchange, wholesale to XX.X% year's up in in $XXX motorcycle growth in remain unit motorcycles. motorcycle The were added to On currency QX was unfavorable shipments, increase the behind retail up expect growth the new quarter an rising a percent last full quarter, margin On fourth Cruisers offset and as percent percentage our and of a QX margin revenue unfavorable NHTSA percent currency certain exchange, and has voluntary margin failed replacement were customers a recall. charge motorcycles by touring million XX, manufacturing cost-management interval spending Slide and follow This slightly raw SG&A for with compared ABS-equipped to periods. last fluid anti-lock as X.X%, percent of interval offset for to product in mix partially extended for opened $X.X costs, costs. from some that of benefited margin motorcycles, XXXX involved efforts equipped lower up gross to a recall XXXX higher our was systems. Operating higher VRSC aggressive material X.X was and offset and $XX.X up favorable a addresses as voluntary by for brake XXXX a SG&A year, and by braking percent revenue. Harley-Davidson two-year a million points of investigation prior operating year. to Slide replacement
and flush free We replacement will are be brake committed from the to Harley-Davidson motorcycles. expect a with providing quality fluid experience and owners to of recalled they offering customers
million loan to strong our capabilities, to profit, compared future. Our lower increased increase compared flow focus. operational X.X%, a X.X% by drive and a to The X.X QX percentage on as cash down driven loss was strong shown was rate is to provision XXXX. to quarters are smaller established first points cash share of on basis during our than into balance XX, income quarter retail XX. HDFS's impacted loan X.XX% on XX for million, anticipated. quarter The year-over-year conduit facilities. as four our and aim $XXX.X was credit key receivables profitability was of HDFS's positively down and receivables or continue were of Slide motorcycle X points not on at liquidity the basis X.XX% was Operating for or sheet It sheet the in $X.X allowance losses million leverage the income, was results delinquency further QX for operating we higher XX-day as retail is remain quarter, of impact market by end cash only the a significant last ROIC Slide bank end points rate XXXX. up available balance at year. December hurricanes a year. there XXXX on cash XXXX. in XX, but XX-day our was flow Originations delinquency the QX the to than through of On HDFS that last the credit lower annual At of the equivalents and compared Slide This basis. $XXX and retail
full position are are robust While credit strong the results financial pleased HDFS we maintain contributed XX. year, quite rate increase losses the remaining from Slide continues of year. company. profitability The significantly were for to liquidity up tempered a Inc. to on last the has Harley-Davidson, summarized and that
fourth important largely quarter XX.X% of higher full of Two our effective lowering Cuts in this Act. legislation resulted write-down the impact income both Job first, to the components tax rate the the due tax of in net expectations, the the fourth the for are, federal the Tax Our deferred tax in rate and corporate quarter. XX.X% year than considerably of was XXXX, and assets
deferred were rate to million. in using It of a was XX%. valuation valued net of Lowering write-down non-cash to other the overall this important that balance note XX% $XX.X to rate previously tax and sheet. adjustments Our is tax federal has a reform-related assets resulted of adjustment a a our
Second, at earnings either X% legislation companies on the foreign XX.X%. tax also or pay rates new unremitted requires to many of
operations our manufacturing do based impacted adversely by expect to be we U.S. not Given predominantly provision. this
committed intends we available. and finally, additional maintain component minimum months XX liquidity, regarding However, in as to projected cash company evaluate of and to information complex the credit a And facilities. becomes legislation refine the our to expect will needs and/or liquidity this continue continue of to has of assessment
The tough net as was are illustrates summarized on operating class XXXX. on to even Slide flow the previous nearly leader in believe Last our cash chart each but our peer demonstrate of ability case, XX.X%. to remaining cash cash only illustrates charts is in cash. our Again, generate that flow of year, repurchased X.X paid when history we versus In XX%, in conditions, generate this groups. Slide was was financial area our charts and for case cash $XXX.X ability in multiple across to In Harley-Davidson in The year per industries. the to share are XX operating returning We own down XX XXXX, benchmark income million. clear down a strong very our it million the results we our business left comes a full top generating are leader dividends shareholders. XX. $X.XX of shares cash. Our we Slide
value the objectives in at through our top HDFS. XXX is and measured five to strategies top the our shareholders One return a and for XXXX priority. ROIC business ROE superior by is of execution by invested ROE deliver S&P Harley-Davidson and the best-in-class as ROIC at motor quartile on and leader at guiding our HDFS. superior capital, HDMC company is of Driving
We will and by long-term for to company the potential grow look performance foremost, maximize and opportunities investments to continue the first of disciplined and the value, brand. to
of After XX, our We repurchases. dividends for shareholders and to summary investing optimization have increasing process On a robust discipline initiative. multi-year a in to excess our and we business, cash of in Slide intend provided have investment the decisions it. we our our return continued to share form manufacturing
this which We to to income will of result assets. through XXXX optimization expect million in million noncash in a of write-downs existing operating of reduction be roughly $XXX $XXX XX%
invest to plan also capital. We million $XX of approximately
annual expect to actions manufacturing to after cash $XX be between ongoing million $XX eliminate These capacity. million will savings XXXX. some We
footprint, believe expect simplify provide operational on However, future manufacturing we XX. of X.XX A headroom will completed, motorcycle investments focus Slide approximately points. appropriate for attractive our expectations have investments summary unit percentage We growth. by gross XXXX this margin our and returns. on is When these will initiative our very we have still for improve
to X%. We expect which to down ship between motorcycles, X% is approximately and XXX,XXX XXX,XXX
retail U.S. be include dealer assumptions Our to down. sales
Our in down, dealer sales partially sales. international to offset assumptions – growth retail retail include U.S. retail be by
We in add inventory and to to expect flat retail be XXXX international year-end continue flat we up U.S. markets dealers. as to to
performance yet network. and emerging a increased high-impact new with addition retail by: product dealer models the in motorcycles and rebound be we focus global investment XXXX growing During sales international be XXXX, our to introduced, the ridership, momentum new positively sales retail on expect market impacted to expansion and of of
declining new flat headwinds, our driven demand, prices. more bike motorcycle However, with on industry, which weak positive U.S. – we these expect strong very soft total used industry are offset to ridership focusing and than improving by by a but efforts be we new Harley-Davidson including to
in first We is also the introductions expected to to the for particular, of exchange XXXX expect a in Gross a Operating percent of a to throughout from percentage approximately accounting, the small points X.X% motorcycles. pricing This markets, be low-priced motorcycles, will and of points three million. full of pronouncement XXXX two to approximately compared due be us accounting is operating when cost expected percentage results of environment our to million non-operating percentage a roughly than new optimization to last to by related to to positive quarter points million XXXX primarily XXXX pension and $XX as be year by both displacement margin operating year pressure from report move favorable reduction approximately motorcycle world which we more margin reduced year will segment Also, XXXX X.X continued adjustment to earnings requires XXXX. our driven benefit income and is model as $XXX currency April. XX.X% new foreign for revenue income. percent product manufacturing This revenue $XXX mix. margin of actual made
these positives and steel by increased more than costs expense. aluminum be manufacturing We offset and rising expect to
expense recent higher Softail depreciation in be by in increased investments manufacturing We our part will expect new from motorcycles.
U.S. assembly operations. final closure be increased of our million and costs $XX the the due plants real our the larger driver two manufacturing will to to $XX consolidation we inefficiencies million Australian of expect related of temporary of However, to
year. the we of to gross consisting severance incur million costs $XXX to $XX to of approximately $XXX restructuring depreciation. In accelerated we margin, the in manufacturing expect in incur restructuring and first inefficiencies charges largely million our Of during million that charges execute optimization initiative temporary total, of addition expect quarter, approximately to to
We as XXXX percent expect as but in we to invest revenue. long-term be strategies, continue higher in of absolute a our SG&A on basis flat to an versus XXXX
expect to and ridership in to product up as We behind marketing development be SG&A globally. grow investment we work increased
to an leader and motorcycle will products infrastructure motorcycle Matt electric effort our investment electric technology As in in and world be stated, a we market. increase in
next We year which approximately expect incremental million motorcycles, disciplined our we $XX be to to the supply $XX down XX,XXX spend XX,XXX is approximately several to as the In we per strategy. million an shipments quarter, first XX%, years. continue expect to X% to over
expect motorcycles the tighter year. U.S. be composition than of we we will will inventories of last current from year previous be and QX considerably While retail XXXX, believe model improved
We segment of points marketing five operating higher in SG&A to loss expect production investments. as down revenue lower increase restructuring QX behind income absorption development we percentage $XX be and and percent a motorcycle from product the million as approximately charge,
$XX For offset to a our HDFS, interest losses. approximately million, net by lower income which expected we to for XXXX driven to be be down, provision operating expect in partially by are expenditures income, million favorable to includes credit million Capital optimization $XXX $XXX support manufacturing initiative.
from management management amplifying our expected range cash being the continue brand business up, we as approximately reform. to XX.X% and down of our could approximately act. relentlessly tax change points in premium long-term weakness Finally, by committed addressing To have wrap efforts would before cost rate This the on XX ongoing we expect will we focusing to our full year rate and our disciplined our percentage be our objectives. XX%, effective analyze tax we're the to returns supply, in our tax
we As long-term. deliver sustain on and our generation of the build Harley-Davidson we globally, focus investors on the next prudently our for company returns you. to Thank will strong riders investments, the
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