There’s much pain in Harley’s boardroom the pain is about Harley’s plummeted financial results during recent past. The pain is all about the effort to change customer perception.
And the simple question.
- Will the 117-year-old world-class motorcycle brand successful in doing it? Before they present their fresh perspective to investors this week.
According to the IBES data from Refinitiv, profits will go down by 97% year-over-year to 4 cents a share and revenues to decline 44% to $808.5 million.
We could see the COVID-19 too playing a significant role.
To overturn the drop in sales, the new Harley’s CEO, Zeitz now has applied an aggressive strategy by reducing the salaries of his executives by 30%, 10 to 20% of employees.
And they too plan to lay off 500 employees.
Harley will, however, continue with there ReWire” strategy based on below five points.
- Enhance core strengths and better balance expansion into new spaces.
- Prioritize the markets that matter.
- Reset product launches and product line up for simplicity and maximum impact.
- Build the Parts & Accessories and General Merchandise businesses to full potential and
- Adjust and align the organizational structure, cost structure and operating model to reduce complexity and drive efficiency to set Harley-Davidson up for stability and success.
UBS based analyst Robin Farley says the five-pointer strategy will help Harley to grow earnings.
No wonder Harley is grappling since last few years in the U.S.
Zeitz who came on board in February is looked upon as someone who can revive this lost brand. In the earlier stint, Zeitz was the main man to transform the Puma S.E in the 90s.