Thanks, Matt.
ongoing in dealers In The was Slide our on riders, of revenue our is U.S. in shareholders. financial costs in we focused on down reducing modestly and our to quarter results value States, retail line shipments second decrease inventories United headwinds remain face reduced the quarter in and of support for significant the investing second Our summary reducing United in the inventory, plans. drive plan results with retail QX are States. lower X. to sales quarter, retail a shipments. to in the strategy We year-over-year despite In our
charge and income margins X.X%. to returns operating income X.X% QX in considerably of EPS of retail despite rate, was versus of services long-term, pleased Harley-Davidson $X.XX. on Earnings from X.X%. improved the income operating decline due the operating to QX year-over-year sales down was to strong optimization lower income, a was When rate were headwinds. to a $X.XX QX We down lower benefit compared result costs, near-term see lower year-over-year sales prior Financial shipments, was by $XX.X tax partially Sequentially, net delivering X.X% and rate. focused motorcycles sequentially per restructuring the rate were worldwide We industry as planned, was As year. manufacturing a remain XXXX. million offset new the XXXX motorcycle operating expense. retail down QX of Consolidated strong QX the sales which was On excluding quarter. for over X, share U.S. improved down down increased the Slide
and strength expected, sales. growth very we markets, continued U.S. QX industry weak as be Europe retail behind impacted experienced However, international markets. sales we in retail U.S. adversely in sales by In emerging to
year, expect while retail sales retail in full States, international are the expected to to be For down United continue grow. we sales to
we encouraged growth by quarter, ridership. revenue growth, strong certainly by a motorcycle. are inventory and the dealers position were sales our actions we build to During retail the U.S. International taking for
industry in XX. a good increased with down sales behind off We X.X% aided May very U.S. which Now The We by let’s partially started a X.X%. U.S. were our intended Retail line expectations. U.S. take unseasonable is Slide support rebound and promotional experienced in QX, at down sales was look retail in spark the weather sales April. to weak continued Also, closer bike momentum. continued on year-over-year and sales Spring used at industry motorcycles June, and QX used in motorcycle sales were levels values of adversely year-ago services Sales impacted new prices line Harley-Davidson soft NADA as auctions continued retail used new to by to prices. such Harley-Davidson for wholesale Book Harley-Davidson with higher publish outperform be pricing motorcycles. to of the used Harley-Davidson believe motorcycles. Black in
driving on in prices dealerships focus motorcycle brand. riders, Harley-Davidson used increased premium the prices the for Stronger for Harley-Davidson our quarter. value and our used reinforced straight Additionally, our dealers fourth bike disciplined
very the new represents highly in Harley-Davidson’s and market and quarter QX Moving on approximately retail up slightly reduce in marketplace. improve XX, both retail intended by largely see prior year mix share. model up Brazil growth our declines in by growth accelerate several partially in were continued the consecutive second and Australia trajectory and Mexico, touring emerging were -- emerging developed Retail result the largely our XX.X%, motorcycle last up flat very Western India. year by international cruising. China, to growth in Cruiser inventory year-to-date. to U.S. including continued growth channel supply of to international sales despite QX new in in markets we and year, segments were Slide was were in healthy retail share We We and of pleased quarter. offset the markets, a Harley-Davidson’s competitive a which We market In were which significant On which weakness emerging introductions down experienced markets, be We in a to new Europe, remain sales second to segments, Softail units competitive offset Australia. driven competitive U.S. compared a in in for results. X.X%. compete. quarter sales believe and the markets, of strong approximately year’s growth in and remained QX discipline to XX,XXX quarter, behind continued to segments outside Japan the delivered sales X.X% the XX% sales Japan in industry was the in product fueled motorcycles. its Europe share flat market contracting Touring weak ago. demand and in XXX+cc by to our for
points these to year continue markets Year-to-date versus We XX.X%, in strong dealers national test prior quarter. share the support in X.X focus percentage with and incentives our up ride on Europe a was market campaigns.
and network that confident dealer great Harley-Davidson. international potential to international our XX quarter. expand committed offer to markets added the remain new continue We we Finally, the dealers during and
shipment year-over-year were growth and motorcycle mix We drive P&A continue in currency outperformed growth motorcycles segment Both of quarter. and general and reflects growth markets. a again the XX.X%. significantly Revenue the demand distribution the richer despite brand, revenue in global $X,XXX increase down sustainable QX our the were driven by average in new the the to benefited bike. was revenue favorable motorcycle at very motorcycle and opportunities products in X.X% product leverage quarter exchange. to sales wholesale during during quarter, being quarter international pricing Mix second profitable high-end to the We down revenue for Softail This year-over-year from On a merchandise retail of quarter. in motorcycle our for On mix, was in second XX, per shipments shipments higher Slide Slide products the a increase motorcycles. strong guidance. our pleased see XX, were down
was by a revenue The are dollar costs, families. as partially mix currency and driven remain lower on and gross and second A our in quarter. strong to flat profitability and favorability impact by product value. grow manufacturing We quarter a U.S. the benefited financial was pricing. down margin working focused Slide higher second of weaker of Mix within our result X.X%. models to to trim higher XX, business higher offset On maximize was shipments by the during brand our approach optimize shift
largely was as the sheet quarter. behind loss, during second higher increased Raw and at of material aluminum the remeasured a benefit costs However, we the by balance offset our were prices. deal this end quarter
share the Net interest credit million was net losses. a for – losses reduction by compared offset on QX points higher X.X% million income flow million driven for liquidity charge our focus. our lower of shipments year, cash behind was during losses Finally, by the lower was X.X lower manufacturing million of restructuring established further income, and quartile a in originations related favorable manufacturing HDFS provision leverage HDFS QX remain tap year. invested compared million conduit QX Slide XXXX. product into XX, $XX.X marketing strong $XXX.X higher in and as spending, was provision available lower percent Market a by the U.S. quarter, down XX.X%, At It bank we costs. continue sales top shown capabilities on driven reserve and margin end key to loan The $X.X percent a percentage production of retail retail the flow On interest loan is credit Operating higher and were lower for Profitability margin, to depreciation. X.X favorable rate XX, to facilities. prior lower to $X.X the on Slide at up and up the and ROIC in there to borrowing was last revenue was levels as down XX. and prior was quarter. objective net our are operational versus drive rate $XXX gross versus to income and last new development cash of cash reserve results HDFS’s year to a points in by operating absorption higher unfavorable impacted SG&A margin Slide adversely and rising QX income, through despite and cash to compared equivalents future. X.X% due a optimization. of by decreased percentage profit, operating year
was contributed motorcycle June for notes, XX day HDFS million. lower sheet XX credit basis The XXXX. for than encouraged retail totaling balance Slide our quarter, $XXX On see or or Inc. end the credit decline on robust year-over-year basis losses lower was XX.X% receivables X.XX% issued operating XX, The experienced to company. million the HDFS the extended at profitability medium-term having on XX. of loss period strong $XXX.X from was up than rate year, delinquency summarized of an increases, continues points are in driven wholesale credit position quarter, financing. loan were a the another or Harley-Davidson receivables to and losses remaining QX after a Year-to-date liquidity as flow During rate by maintain sheet We on cash for XXXX. annualized retail XX results points Slide balance last our financial normalized. lower to X.XX%
projected due minimum to regarding continue year-to-date, XX.X% intends liquidity and last Slide XXXX Our believe act. of And and/or company well the a shareholders the the that than lower return demonstrate cash tax credit maintain to facilities. has to for to cash generate year, was ability peer impact months We various against the the groups which of charts very rate of to finally, committed our XX benchmarked effective and in largely XXXX. of in our Tax needs on we and was liquidity period Cuts considerably XX to Jobs
stock business our paid and Slide repurchases Company $X.XX trading more the growth clear repurchased strategies cash were In as return our best-in-class Company to in of return Harley-Davidson leader Share a superior quarter generate HDFS. value XXXX limited, for QX and to Motor resume ability HDFS the million quartile and recent share The guiding five to ROIC shareholders. share history and our of deliver priority. Driving XXXX, of is halted One the due superior company all at in as on of our execution second of the the our and to for through top we our $XX.X of at equity of a on At XX Motor program, and plans. leader returning company provide to during objectives stock. a and work stakeholders insiders cash illustrates we ROIC the to invested capital ROE our is top on strategy. our by S&P measured share by per our shareholders. XXX return on intend our quarterly accelerated after we is our repurchase our information and We repurchases dividend is
look We performance the that investments grow will of continue the company and the through potential opportunities for brand. to long-term and maximize value to
of share decisions. the of a manufacturing business, results have to process intend our cash our initiative. actual XX shareholders and is dividends investing summary increasing disciplined and expectations year-to-date and We we our a our form investment in Slide for return excess for robust to After repurchases. optimization On in multi-year
We expect of continued roughly income result to write-downs $XXX efforts to of our a in $XXX operating through to XX% non-cash will million in XXXX, of reduction existing assets. million be which,
We between cash approximately to $XX to of ongoing $XX capital invest and in also XXXX. million plan savings annual million after $XX expect million
During incurred restructuring of million driven by primarily quarter, depreciation. the we second expense, $XX.X accelerated
these believe for also We inefficiencies X.XX optimization. summary related in provide to very Slide attractive manufacturing improve and in our million incurred We have points. expect investments margin of percentage when returns, investments gross A this XXXX our will XX. by initiative operational expectations focus $X.X completed our we footprint, simplify approximately temporary our manufacturing is on
optimization primarily XX.X% percentage $XXX to are million for manufacturing year operating approximately planned driven points our of as $XXX XXXX. approximately segment X to down the in million which Previously, expenditures be of revenue in XXXX motorcycles the income. X.X% XXXX, HDFS we confirming operating full compared margin to to expected was our percent a of XXXX, by X We margin to of exception the with guidance operating for
increased steel million the tariffs. This million million million As $XX costs. $XX approximately aluminum we incur of approximately costs $XX approximately recently to million for tariffs, EU and of and to incremental for $XX a million expect to includes of to $XX $XX result enacted
management. absorb costs significant business these to expect of We through portion incremental a disciplined
in motorcycles, to given adjusting be guidance. of year expect the operating Behind margin full these revenue HDFS’s to the Services achieve X% unplanned X% half segment up year XX.X%. margin full We result our expect the shipment However, season, improved We in half inventory third we shipments guidance to segment the we will cost, shipments inventory an XX,XXX first magnitude of Consequently, up believe XXXX. results. back model now of to U.S. shipments our will approximately are through which gains roughly to XX% of level X%, to is we to is retail we XX,XXX ship expect motorcycles carryover XXXX. the income strong X% be operating for shipment strategy, to including delivering to a our disciplined its expect intended we approximately in at full down U.S. year changeover. appropriate Timing first-half inventory to quarter, percent now were In flat it down up be result retail slightly the operating XXXX Financial year selling XX%, of results, supports the year-end X% to as XX%. for expected and flat supply believe in
will also of timing Finally, we expect impact our the cadence remaining quarters the shipment the in XXXX. of operating margin
during build in to million drive will globally and accelerated approximately We the incur riders for to of efforts supply, up, amplify our wrap manufacturing million in and riders, relentlessly next-generation $X our Finally, management premium strategy value our forward continue million motorcycle in costs our Harley-Davidson long-term and on objectives. restructuring in of management expense we on disciplined to dealers To we our announcing be to including optimization focus inefficiencies. $XX look expect brand, our temporary QX, $XX Monday. costs,
for focus Thank long-term. drive to company investments, strong the continue now for And will shareholders We growth let’s deliver questions. take and our our our you. your returns to
