Harley-Davidson’s Jochen Zeitz plans to retire as CEO in 2025, the company said Tuesday, ending a five-year tenure marked by efforts to revive the American motorcycle maker struggling with plummeting demand.
Zeitz, who had helped revive German footwear brand Puma’s near-bankrupt business, joined Harley’s board in 2007 and was tapped as CEO in May 2020.
Zeitz, 62, launched the “Hardwire” strategy in 2021 to turn around the storied motorcycle maker looking to connect with young riders as its key customer base of baby boomer aged.
The five-year strategy involved prioritizing high-margin products, exiting international markets with low sales volume and modernizing the brand’s appeal.
“Jochen has done a nice job of shrinking Harley’s global footprint and refocusing the company on its core Touring bikes and large Cruisers,” said Raymond James analyst Joe Altobello.
“Unfortunately, the industry has been challenged by several factors, including higher interest rates; at the same time, consumers appear to prefer smaller and more affordable bikes, which is not Harley’s strength.”
Harley in February forecast 2025 profit and motorcycle revenue to be flat to down 5% as consumers temper big-ticket purchases.
“Lack of end-market demand looks likely to continue for the foreseeable future and has undermined the turnaround plan and shaken the confidence of dealers & investors,” Longbow research analyst David MacGregor said.
He said prospects for meaningful progress appear further out of reach at Harley as it gets caught in the crossfire of an emerging global trade war.
Harley’s shares were down about 1% at $22.90 in midday trading amid a rebound in the broader markets.
They are up more than 11% through Monday’s close since Zeitz took charge, compared with the 77% rise in the benchmark S&P index.
Harley’s board said it has launched a search process and Zeitz is expected to remain until a successor is named.
Credit: Source link
