operating to Matt. of and the Thanks, Motorcycle quarter improved sales retail half we of deliver expectations. were third versus EPS margin XXXX. pleased rate quarter, worldwide the segment The first the In during ahead
More Roads future plan we growth. execute Harley-Davidson good made our as drive also We progress continue to with to the
In XX. impacted third by of and The Motorcycle mix the the was income offset lower partially segment QX year-over-year initiatives. optimization on manufacturing unfavorable quarter, higher Slide of SG&A and by benefit is our our operating shipments, year-over-year tariffs summary results lower
down $X.XX. Consolidated recent China cost operating impact $X.XX. to Financial the net excluding for XX.X%. and adjusted income plan restructuring income. services EPS versus income due was quarter was the operating and down EU tariffs, prior was of year was When EPS lower
focused cash over long-term. and returns managing shareholder disciplined retail tightening the costs, and remained on delivering generating inventory, from aggressively strong We operations,
were were sales XX, year. the markets. in Slide down prior up third new in both and X.X% On developed International Harley-Davidson growth worldwide sales versus driven quarter emerging our motorcycles retail by retail X.X% of
rate down which In the retail versus X.X% sales an the recent prior year, quarters. QX represents in improvement U.S., were sales over
the benefited and from the tempering of sales retail industry’s sales retail our Our declines. actions
expect continue headwinds. and as We the to developed pressure remain our U.S. markets under face to business international substantial
with worldwide and competitive in product environment activity global the promotional U.S., intense aggressive new remains The introductions.
plan believe our executing and our riders. future great overcome build Roads execute to these and we to the committed by intensified plan with strong We for to on expect have we that More market urgency. a efforts focusing We are challenges
retail Slide a retail performance look let’s on industry share. U.S. In closer at QX U.S., Now down improved behind the and sales take were the but lower, XX. market softer sales
quarter consecutive fourteen quarters. in last Third lowest quarter rate year-over-year The the were X.X%. decline represents performance the third retail down sales industry’s industry of
Similarly, decline Harley-Davidson’s industry of year-to-date retail of X.X% On decline decline in recent year-to-date a the quarter On third compared period line sales the with year. rate a XX.X%. year-over-year the basis, Harley-Davidson’s of in our versus as retail to was X.X% sales was last favorably last tempered year’s basis, compares expectations. during and of X.X% same decline to a quarters down
focus was our improved and growth this driven believe improved on rate We marketing performance, stronger industry investments. dealer by of decline increased catalyst
our More segments currently which we new percentage Roads XX.X%, registrations the we of of to as by the X.X During U.S. plan stronger year market execute bike points do next the not our was but down in quarter, and compete compete share plan. in end in performance
industry. share growth percentage CC incentives. which short-term In increased while catalysts approximately represents our third Touring Cruiser quarters, of XX% dealer marketing, second market increased dialing and execution during on sales of and gained segments, within focus X.X the and points back brand the the the our XXX stronger of total quarter our plus we Harley-Davidson
further dealers’ but driving offer third dealer During with we of did new incentives, finance Year tightly aimed carryover We incentive the of conjunction in manage inventory. motorcycles our new motorcycles arrival to into the Model our week and traffic two motorcycles to network on reduced year-over-year in quarter, a the carryover sales the shipments our dealership reduce quarter.
our new the decreasing We with motorcycles. levels at bikes XXX were market and We dealer new versus consumer mix this prior This approximately end year discipline resulted year. product, motorcycles important value pleased our dealer is quarter the end the new inventories will ultimately retail maintaining of model the result of and stronger U.S. in believe and in the retail of quarter. inventory in sales
plant retail sales markets. up X.X% during in X.X% led by markets. our third was Thailand. quarter ASEAN in our the the of to sales supplying these were from sales quarter our markets international versus markets year. were On retails QX tariffs benefited developed ASEAN prior pricing, up up by in retail in enabled from elimination and reduced due growth emerging both Slide were Emerging markets which XX,
by sales Mexico. these during X.X% India in developed offset and growth quarter. the were Retail markets Strong up in markets in partially softness was
QX which Our quarter, sales developed down second the retail rebounded markets’ was XX.X%. from
delivered in we growth over past have retail all Japan, sales several During and the the down been quarters. quarter, solid Australia, Canada, which
the We improved effect strength Japan second was significantly from believe in partially retail tax Western on October slightly, down country’s in Xst. quarter. into increase in decline were consumption the that by which an went the but Europe aided sales
Our year-to-date in down X.X prior market X.X%, share was versus percentage Europe points year.
that market share by impact our We the by in was committed potential due and adversely exists markets. motorcycles to international remain lapping lower Our confident Softail Street the in strong of and sales year’s to impacted of Street last great implementing results the recall.
growth products growth our of drives We believe Roads – and this More distribution sustainable our strength to the – internationally. supports plan brand,
in On Overall, third shifted X.X% family motorcycle Cruiser Slide shipments were of last to at and our wholesale from guidance. mix Motorcycles roughly year’s quarter. down midpoint QX XX, versus Touring the
product On year-over-year and pricing segment was exchange X.X%, offset was incentives. less Slide flat. the and in motorcycle motorcycle reduced revenue higher for rich unfavorable A mix essentially sales XX, down per currency behind foreign X.X% bike Motorcycles by revenue shipments. were Average a decrease
content, pricing a of percentage year Wholesale weighted percent for the Adjusting the XXXX of and increased average pricing of X.X%. points motorcycles new new MSRP as our X.X expressed cost approximately revenue. increased model approximately
and by P&A higher Slide pricing. the product merchandize $XX.X quarter XX, gross manufacturing unfavorable expense mix of in margin in offset lower partially result and as down model, QX general was driven by slightly favorable was unfavorable Product shipments, currency, On family, by million mix mix. a and
revenue currency. gains. was point nearly X gross down QX to unfavorable U.S. stronger adversely was hedge QX by margin which percentage $X.X offset impacted largely of by million dollar, was due
lower implementation was our and expense largely optimization favorable year manufacturing savings of partially lower and resulting production In by the offset shipments. manufacturing by prior initiatives, QX, driven versus from absorption
impacts tariffs $XX.X were up prior In versus addition, year. QX million of $XX.X million
to to operating On by reinvest we XX, SG&A for partially aggressively last and by in year, Slide in QX margin than lower as a revenue increased marketing restructuring and continue compared was year lower Roads and SG&A manage prior savings of plan expenses. percent lower as driven gross margin, our was More offset lower investments. cost
is top down year. totaled flow capabilities $X.X the profit, in strong. million third key flow $X.X prior It Profitability leverage million and our motor was to a our for ROIC. company charges further from optimization the cash quarter, remain objective Restructuring manufacturing and Profitability drive build quartile to and focus. to continue cash
Financial largely Services third $X.X $XX.X XX.X% was million higher interest year. million, Slide income Net and was year-over-year the operating higher compared receivables to by interest up income prior favorable to segment down quarter yields, offset on XX rate interest shown expense. due
in to credit in million by rate for QX provision XXXX a XXXX. increase loan higher $XX.X driven and The decrease retail losses reserve the motorcycle compared QX reserve the an in was unfavorable quarter, losses rate in
QX expenses Motorcycle moved result versus higher Financial in implemented and of management Dealer the reporting which as a as up prior segment January from a which was system, loan in change due of XXXX segment Systems business the new our result depreciation were to Harley-Davidson a in Operating to a XXXX. investment year Services
and XX.X%. in and increase retail HDFS million HDFS’ results by and of the bank the XX. quarter, QX conduit cash X.X% through At share was prior liquidity are cash at billion available on versus market year of of used operational an driven HDFS' $X.XX originations. credit loan originations there were equivalents Slide up facilities. end bike $XXX.X was
$XX paid Harley-Davidson million HDFS to Inc. dividends of QX, During
as implementations loan were implementation our behind adversely fourth resulting the impacted the plus Slide XX-day system XX, of in inefficiencies on the delinquencies both by quarter. key system expect quarter, startup be we largely from new and management credit On expected us. losses to metrics our first impact In the
rate basis was sheet basis X.XX% XXXX, or The XX-day from XX balance loan but was motorcycle in annualized improved for points QX points. QX receivables up delinquency last The rate sequentially credit than which retail for X.XX%. on year’s higher was on QX sheet loss XX balance retail rate, receivables
QX for it loss QX’s takes the increase implementation LMS of XX basis was above resulting points was which the from credit time slightly XXXX, as XX losses. increased roll to delinquent system basis up through rate loans points to
quarter losses extent, softer lesser a XX. To are The Inc. third credit on financial impacted also were Slide auction. by adversely prices at remaining motorcycle Harley-Davidson results summarized
flow net lower million. operating and down million cash working $XXX.X Our was was cash and capital, securities $XXX.X marketable versus by income. Year-to-date year, quarter end last driven of higher balance
ROIC cash of are HDFS, are to charts Regarding Motor committed XX facilities. has leader projected a generate months continue cash maintain we shareholders. that in We in at in minimum liquidity our intends XX credit to clear and/or liquidity, ROE and on to leader the a ability the company at and we believe of needs demonstrate a to and the Company return our and Slide
to the business five execution quartile XXX the our through and strategies top S&P at on the XXXX measured return equity deliver in is HDFS. return as guiding ROIC Company of on Motor capital of by invested and by superior objectives best-in-class One
superior our quarter of XXX.X illustrates cash history million In a per priority. of the value repurchased Slide our $X.XXX third of of XX paid XXXX, a share the shareholders and to is recent dividend quarterly returning we for top stock. shareholders. our Driving
process decisions. for have a investment robust We disciplined our and
After business, cash for the to performance in shareholders company We value long-term of the excess through grow the intend opportunities the and maximize and form return of increasing that investing our our share brand. we to look and to potential investments repurchases. dividends in
savings of after million XXXX. be our ongoing $XX million to multiyear manufacturing are summary cash a $XX expected is Slide XX to Annual optimization.
savings savings these million of we for $XX realized and million continue quarter. to $XX.X in expect million to XXXX We the third in $XX
full expect improve operating They operational we our We these investments the percentage and gross footprint, million continue $XX believe to roughly quarter million investments For returns. points. to our $XX.X were in million year, expense. incur in Manufacturing margin $XX simplify a focus expect to QX. provide of one attractive costs optimization very to have manufacturing by and
Moving capital our from to lower remains the We $XX full than of year QX million is guidance. $XXX expect XXXX spending. on which capital XXXX now be with Slide million, the unchanged guidance XX spending $XXX previous to on, exception million our
of end of Softail to the for EU yields sale October producing On in tariff motorcycles Thailand of high begin flow to we on the and the the Thailand of allowing treatment track XXXX. last Sportster continue early we produced to expect mitigating and our of EU tariff approval favorable our in allow by through to quarter’s begin for by EU facility, QX in motorcycles remain time tariffs transportation inventory, in
approximately the remained $X $XXX shift they negotiations. year For to tariffs EU of This as full million very continue fluid by now in global XXX which expect Section with million. and XXXX, prior be trade increase we expectations and is is increase to impacts from recent driven China tariffs, a an
tariff we to For approximately be now expect impacts annualized XXXX, XXX $XX million.
We In are of ship we alternatives fourth approximately to the mitigate to tariffs. new quarter, currently the evaluating XX,XXX XX,XXX help motorcycles. impacts to expect these
to a as quarter, loss a operating we year’s of Also expect quarter fourth the improvement margin. in margin last representing over fourth an be of approximately X.X% percent motorcycle revenue
unfavorable $XX are approximately offset QX shipments, by unfavorable be by SG&A lower costs tariff adversely lapping higher currency, results recalls. expected of mix, impacted quarter XXXX partially favorable and year-over-year behind million Fourth to
challenges in Harley-Davidson during Roads opportunities that the markets. today’s progressed exists addresses to and international tremendous marketplace that the our plan wrap our we up, against More To quarter,
sales recognize we continue this As of momentum encouraged we the first XXXX, through nine substantial we face. of year are of retail look the also trends to the that by but through headwinds months the remainder
global are competitive Looking extremely prepared longer-term, for dynamic we marketplace. an and highly
for We to our long-term returns driving the are for growth and committed company strong shareholders.
now, And you. your questions. take let’s Thank
