The following is a summary of the LiveWire Group, Inc. (LVWR) Q4 2023 Earnings Call Transcript:
Financial Performance:
In Q4 2023, LiveWire saw a meaningful per unit profitability increase and an operating income margin growth to 13.6% due to a strong focus on pricing and mix.
Despite a slight reduction in revenue for the year due to challenges and currency headwinds, the company recorded only a 1% decline.
Retail performance for Q4 was lower by 11% compared to the previous year, but higher global wholesales were reported.
For Q4, LiveWire's consolidated revenue dropped 8% compared to the previous year, with a net operating loss of $21 million, compared to the operating income of $4 million in Q4 2022.
Overall, there was a 1% rise in total consolidated revenue for 2023 compared to the previous year, but operating income was 14% less and earnings per share dropped slightly.
HDMC worldwide motorcycle shipments dropped by 13% in Q4 2023, and revenues decreased by 14% due to reduced volumes.
Business Progress:
With plans for an aggressive shipment schedule for their new touring offering in Q1 and partnerships with Hero MotoCorp progressing well, LiveWire aims to continue its market leadership in touring and large cruiser categories.
The company invests heavily in enhancing the customer experience, with a focus on transforming omnichannel capabilities and post-purchase customer journey, with their online platform, HD1 marketplace, leading in its category.
Future plans include the launch of Grand American Touring category, aggressive efforts in driving down product costs, cautious inventory management, and matching retail with wholesale momentum in 2024.
LiveWire continues to pioneer the EV segment with the S2 platform, diversifying their brand by running LiveWire and Harley-Davidson separately.
The Hardwire strategy aims to eliminate $400 million of incremental supply chain costs by delivering around $100 million in cost productivity for 2024.
The company plans to continue its capital allocation strategy including investment in product development, capability enhancement, dividend payouts, share buybacks, and is considering share buybacks throughout 2023 to reduce their share count.
More details: LiveWire Group IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.