Harley-Davidson bets on affordable models, dealer network in latest turnaround effort

Harley-Davidson outlined a new strategy on Tuesday focused on lower-priced motorcycles and its dealer network to help shore up volumes, under new top boss Artie Starrs.

The company's "Back to the Bricks" plan targets over $350 million in core profit from its motorcycle business by 2027 and over $150 million in cost reduction, with more focus on its higher-margin parts ‌and accessories ⁠sales.

Harley said ⁠it would introduce its entry-level, 440cc model, Sprint, and revive its iconic Sportster model, while ​expanding customization options through "blank canvas" models.


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"We see the Sprint at a price point, approximately $6,000, with a size, maneuverability, features and benefits that are, say, more consistent with what some young riders are looking for," CEO Artie Starrs told Reuters.

Starrs added that ​the new strategy was centered around leveraging Harley's dealer ⁠network, designed ‌to improve dealer profitability and better align inventory with demand.

The ​reset comes ​at a time when inflation, higher borrowing costs and gasoline ⁠prices have squeezed household budgets, pressuring demand for big-ticket items, ​such as motorcycles.

Harley reported a lower profit in ​the first quarter, hurt by lower demand and tariffs.

TARIFFS STILL A DRAG

Harley said it expects tariff-related costs of $75 million to $90 million in 2026, down from its earlier estimate of as much as $105 million.

Starrs said tariffs were still a headwind for the company, even if they were under control and the impact ‌from them was expected to ease in the coming quarters. It reported $45 million in tariff-related costs in the first quarter.

Although Milwaukee-based ​Harley manufactures ​most of its core products ⁠domestically, it continues to face pressures from U.S. tariffs on imports of components such as semiconductors that are used in modern motorbikes.

It sources about 75% of ​the components from American suppliers.

The company reported a net income of $25 million, or 22 cents per share, for the first quarter, down from $133 million, or $1.07 per share, a year ago. Analysts had estimated a profit of 27 cents, according to data compiled by LSEG.

Its overall quarterly revenue fell 12% to about $1.2 billion.