Growth Beyond Bikes Harley-Davidson ' s complementary businesses – Parts & Accessories , General Merchandise , and Harley- Davidson Financial Services – are important pillars of the company ' s future success as a global lifestyle brand and provide untapped potential
10 AMERICAN MOTORCYCLE DEALER - MARCH 2021
to grow its customer base and add to customer lifetime value . The Hardwire targets growth and profitability of these businesses through refreshed product offerings , stronger execution , and additional digital and indealership purchase opportunities . Expanding global Harley-Davidson Financial Services offerings will provide greater flexibility for
Much has been made of Harley ' s intention to reduce the number of markets it is principally active in , with the ten priorities now stated to be United States , Canada , China , Australia , New Zealand , Germany / Austria / Switzerland , United Kingdom , Italy and France .
Key Highlights
" Rooted in desirability and guided by the company ' s vision and mission , The Hardwire aims to build the brand beyond riders , deepen loyalty , preserve value and drive engagement ." The strategic priorities of The Hardwire are :
-Target increased profitability and low double-digit EPS growth through 2025 -Broaden view of its customers , inclusive of non-riders , tailoring each step of the journey in new ways and through multiple channels , including enhanced digital touchpoints -Invest in core segments of Touring , large Cruiser and Trike to strengthen and grow its position -Expand into Adventure Touring and within the Cruiser segment to unlock untapped volume and margin
-Launch Harley-Davidson Certified , a pre-owned motorcycle program supporting growth expected across all complementary businesses -Strengthen commitment to electric with the creation of a dedicated division focused exclusively on leading the future of electric motorcycles -Fuel power of Harley-Davidson as a global lifestyle brand through reinvigoration of parts , accessories and riding gear and global expansion of financial services -Extend employee ownership to all employees by offering an equity grant to approximately 4,500 employees , aligning with new approach to Inclusive Stakeholder Management
" We launch The Hardwire with capabilities , assets and a legacy unmatched by any competitor . Harley-Davidson is the most desirable motorcycle brand in the
The Hardwire financial targets 2021-2025 :
-Mid-single-digit revenue growth in Motorcycles segment , with solid growth expectations across all businesses -Steady improvement in Motorcycles segment operating margin from 2019 ( most recent comparable year ) -Double-digit growth in
Financial Services segment operating income behind growth in the Motorcycles segment and optimization of the company ' s digital platform -Low double-digit EPS growth -Capital investments between $ 190m to $ 250m annually -Cash allocation priorities are first to customers , including a pre-owned Harley-Davidson motorcycle program , Harley-Davidson Certified , aimed at enhancing the overall customer experience and supporting growth in all complementary businesses . Customer Experience The Hardwire puts customers at the forefront of Harley-Davidson ' s products , experiences and investments and defines customers as people who may dream of motorcycling or just learned to ride , all the way to riders who are deeply passionate about and invested in the Harley-Davidson lifestyle . The company recognizes the different needs and expectations of customers across the purchase journey and the importance of a customer
world , backed by leading positions in the most profitable segments and a reinvigorated culture of performance , efficiency , focus and speed . By unlocking our full potential , prioritizing profit through leadership and fueling our lifestyle brand with an enhanced product offering and leading digital capabilities , our strategic plan will drive the desirability of Harley- Davidson for all ," said Jochen Zeitz , Chairman , President and CEO , Harley-Davidson . " I am proud to announce our first commitment as part of our Inclusive Stakeholder Management priority , an equity grant to thousands of our employees , including every hourly factory worker . It is only fitting that this inaugural action is for our own Harley-Davidson community who continue to deliver our iconic products and experiences with great pride and craftsmanship every day ."
fund growth through The Hardwire initiatives , then to reward shareholders through dividends . Harley-Davidson , Inc .' s Board of Directors approved a first quarter 2021 dividend of $ 0.15 per share , payable March 19 , 2021 to shareholders of record of the company ' s common stock as of March 2 , 2021 . experience that ensures each touchpoint is tailored to individual needs . Powered by integrated data , the company ' s goal is to seamlessly engage with customers , creating a meaningful , unique and personalized experience with Harley-Davidson each and every time . Inclusive Stakeholder Management In its approach to optimize long-term value for all stakeholders , Harley- Davidson views inclusive stakeholder management in the context of people , planet and profit , as all three are deeply embedded in the past and future success of the Harley-Davidson brand and company . People : Harley-Davidson aims to foster a community reflected in its H- D # 1 culture , including a highly desirable , safe and inspiring workplace that attracts and retains top talent by evolving its spaces and how its employees work . The company will strive to create an inclusive community with a strong dealer network and a supply base focused on ethical , sustainable and equity-based purchasing and sourcing practices . Planet : The company is developing a path to net zero environmental impact while delivering on its mission , investing in its practices and teams to do so . Profit : Through Harley-Davidson ' s focus on desirability , the company plans to drive profitability and shareholder returns . In order to closely align the rewards of its employees with those of its shareholders , approximately 4,500 employees will be offered an equity grant at the start of The Hardwire . With this expanded approach , all employees from factory workers to executives and all shareholders will benefit when the company succeeds . Financial Targets The company is targeting profitable growth on the top and bottom line through 2025 . Financial results are expected to demonstrate progress in several critical areas , including revenue and operating margin , driven by investments , increased efficiencies across operations and leverage within SG & A as the company maintains a lean cost structure .
www . AMDchampionship . com