Harley-Davidson cut its full-year revenue forecast due to persistent inflation and weak demand following a consumer boycott that prompted it to decline. diversity, equity and inclusion (DEI) The programs took a toll on its balance sheet.

The motorcycle maker said its North American sales were down 10% and it expects its global shipments for the full year to be down 16% to 17%, per compared to its previous forecast of a 7-10% decline.

Projected Harley-Davidson that its annual retail sales would decline by 6% to 8%, whereas it previously expected them to stagnate or increase by 3%. It now expects revenue from motorcycles and related products to be down 14% to 16% compared to its previous estimate of a 5% to 9% decline.

“We worked diligently throughout the quarter to mitigate the impact of high interest rates and macroeconomic and political uncertainty, which continue to put pressure on our industry and customers, particularly in our core markets ” said Jochen Zeitz, CEO of Harley-Davidson.

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Harley-Davidson shares fell more than 3% on Thursday when the announcement was made in conjunction with its publication of results – although it rebounded around 2% in Friday morning trading. Its stock is down about 15% last month and 11% year to date.

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The company’s falling sales come after it faced pressure earlier this year from anti-DEI activists, including social networks influencer Robby Starbuck, who spoke out against several of the company’s controversial internal policies in July.

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In August, Harley-Davidson released a statement abandoning DEI initiatives that it said it had abandoned earlier in the year.

“It is critical to our business that we recruit and retain top talent and that all employees feel welcome,” the statement said. “That said, we haven’t had a DEI function since April 2024, and we don’t have a DEI function today. We don’t have hiring quotas and we no longer have spending targets regarding supplier diversity.”

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The company also said it is re-evaluating employee training initiatives and sponsorships while refocusing on its most loyal customers.

“As a consumer brand, we will focus exclusively on growing the motorcycle sport and retain our loyal motorcycle community, in addition to the support we already provide to first responders, active military and veterans,” the Harley-Davidson statement said.

Several other high-profile companies have rolled back their DEI initiatives over the past year, including Caterpillar, Ford, John Deere, Tractor Supply, Lowe’s and Molson Coors.

Kerry Byrne of FOX Business and Reuters contributed to this report.

Original article source: Harley-Davidson Cuts Revenue Guidance Due to Inflation, DEI Backlash