<<< Continued from page 6 consolidated operating income was down -14%. The result was driven by an operating income decline of -2% at HDMC , a decline of -26% at HDFS , and a higher operating loss in the LiveWire segment . Harley ' s results news release went on to state that fourth quarter global motorcycle shipments at HDMC decreased -13% " due to prudent dealer inventory management and market conditions . Revenue was down -14%, due to lower volumes , where improved mix was offset by incentive spend . Parts & Accessories revenue was down -14%, largely in-line with revenue from Motorcycles . Apparel revenue was down -21%, driven by high dealer inventory levels resulting in lower replenishment . " Fourth quarter gross margin was down -3.6 points behind the impacts of lower volume , higher sales incentives and other manufacturing costs , more than offsetting the benefits of shipment mix and lower raw material costs . Fourth quarter operating margin fell by 2.1 points due to the factors above , where operating expenses were lower in the quarter due in part to LiveWire transaction costs in the prior year ' s period . " In the fourth quarter , global retail sales of Harley-Davidson motorcycles were down 11 % versus prior year . North America retail performance was down 9 % and continues to be impacted by both the high interest rate environment and the discontinuation of the legacy Sportster at the end of 2022 in the region . The decline in EMEA of -22% was driven by weakness in the French and German markets . The decline in APAC of 10 % was driven by weakness in the Australian and New Zealand markets . Latin America sales increases were driven by growth in both Brazil and in Mexico . " For the full year , global retail sales of Harley-Davidson motorcycles were down 9 % versus prior year . North American retail performance continues to be adversely impacted by higher interest rates , economic uncertainty and lower sales of non-core motorcycles . EMEA retail has been adversely impacted by sluggish economic growth and the planned mix shift towards the profitable core product segments . APAC retail performance experienced strong growth in the first half of the year , but slowed in the second half of the year , with overall growth in Japan for the year . " HDFS revenue was up $ 32m in the fourth quarter , an increase of + 15 % versus prior year , driven primarily by higher interest income . HDFS operating income decline of - $ 6m , or down -10 %, was driven by higher interest expense , higher operating expenses and an increased provision for credit losses . The increase in the provision for credit losses was driven by several factors relating to the current macroeconomic environment . Total quarter ending net finance receivables were $ 7.5bn , which was up + 5 % versus prior year , driven primarily by an increase in wholesale commercial lending receivables . " In the fourth quarter , LiveWire revenue increased to $ 15m from $ 9m , driven by unit sales of the new Del Mar electric motorcycles . The LiveWire operating loss was $ 35m in the fourth quarter , in-line with our expectations , and driven by continued product development and other spending associated with the delivery of the Del Mar electric motorcycle to market ." Having launched at around $ 7.18 at the end of September 2022 , LiveWire ( LVWR ) stock reached as low as $ 4.85 three months later , but has gradually recovered since , closing at some $ 10.70 on February 9 , 2024 . Harley has still failed to meet its stated flotation launch target of reducing its ownership stake in LiveWire to 74 %, and as recently as six months ago still owned some 90 % of the LiveWire stock . With 225 employees and joint Milwaukee and Mountain View , California headquarters , LiveWire ' s market cap is some $ 2.23bn , with the share price having increased by some + 50 % since that ill-fated September 2022 launch . In 2023 , H-D generated $ 755m of cash from operating activities , paid cash dividends of $ 96m , repurchased $ 350m of shares ( 10.2 million shares ) on a discretionary basis and raised $ 2.5bn of financing for HDFS . The company reported holding cash and cash equivalents of $ 1.5bn at year end .
8 AFTERMARKET MOTO DESIGN - APRIL 2024 www . AMDmag . com