The following is a summary of the LiveWire Group, Inc. (LVWR) Q1 2024 Earnings Call Transcript:

Financial Performance:

• LiveWire Group reported 6% growth in North America and an 86% increase in sales over Q1 2023 with 117 units sold.

• Sales in Europe and APAC countries were softer due to macroeconomic factors, but expected to uplift with the new 2024 models.

• Expected revenue and retail units for the remainder of the year show a potential flat to 9% increase, while an expected operating income margin of 12.6% to 13.6% matches or slightly declines from previous year.

• Operating loss guidance is improved, with predictions of a $105 million to $115 million loss, revised from the original $115 million to $125 million loss.

• Lower than expected operating leverage led to a reduction in HDMC gross margin, down to 31.2% from 35.8%.

• The company is dealing with inflation impacts, and expects cost inflation around 2%.

Business Progress:

• LiveWire achieved market leadership in US on-road EV motorcycles, bolstered customer outreach via Flex Financing, and saw positive market responses to their new motorcycle models.

• Operations are being consolidated to the historic Harley-Davidson headquarters in Milwaukee for increased efficiency, and a reduction in headcount and employee-related costs is projected for further savings.

• Shareholder returns are planned to be optimized through share repurchases and dividend payments while planning innovative customer engagement events.

• The company is confident that inventory from previous model years will be largely sold by end Q2 2024, and expects to follow the normal seasonality curve for losses.

• Ongoing centralization and recently ratified union contracts provide stability for the next 5 years, echoing better alignment with union leadership and workforce.

More details: LiveWire Group IR

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