Harley-Davidson, Inc. (NYSE:HOG) Q3 2019 Earnings Conference Call - Final Transcript

Oct 22, 2019 • 10:00 am ET


Harley-Davidson, Inc. (NYSE:HOG) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the 2019 Third Quarter Earnings Conference Call. [Operator Instructions]. After the speaker's presentation there will be question and answer session. [Operator Instructions]

I would now like to turn the conference over to your speaker today. Director of Investor Relations, Shannon Burns. Thank you

Shannon Burns

Good morning, everyone. You can access the slides supporting this call at investor.harleydavidson.com. Click the earnings materials box in the center of the page. Our comments will include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted in our latest earnings release and filings with the SEC. Harley-Davidson disclaims any obligation to update information in this call.

Joining me this morning, are President and CEO Matt Levatich, and CFO John Olin. Matt, let's get started.

Matt Levatich

Thanks, Shannon and good morning, everyone. We've closed out our third quarter with results that included EPS and operating margin that were ahead of expectations and in addition, we made noteworthy progress which I'll get into here today. As we shared in September, we've sharpen the focus of our objectives to build riders in the United States, and made clear how we plan to invoke the power of our brand in new ways to deepen the commitment of riders now and into the future. Our strategy and commitment to build riders is driving deeper understanding and broader capabilities that are and will continue to propel our company forward, and our operating discipline, along with our dealers' efforts continue to bring increasing business stability in this dynamic marketplace.

Guiding all our efforts is deeper analysis and insights on why people engage, participate and disengage from riding. Our advanced analytics capabilities and rider migration database have evolved into a powerful asset and a wealth of information and inspiration for us. We know more than ever about how to attract people to riding and keep them engaged to build committed riders, and we know how this applies, no matter what their experience level, age, or life stage. We have two primary focus areas: attracting more people to riding, and keeping riders riding. Our execution might be different for young adult versus a returning rider, but the essence of our work is the same across the customer spectrum. We're bringing precise focus to how we influence each customer at their decision points to build the total number of committed Harley-Davidson riders

Where we previously had an objective to build 2 million new riders in the US, we now know why, where, how and what we can do to work both sides of the equation, attracting and retaining to increase the total number of riders. We've done the math considering demographics in used bikes, and we've set targets for new riders we need to attract and retention rates that we need to achieve 4 million total US Harley-Davidson riders by 2027.

Reframing this objective helps us sharpen our work on both