MILWAUKEE, Wisconsin: Harley-Davidson is pivoting toward lower-priced motorcycles and a stronger dealer network as it looks to revive sales and attract a new generation of riders under CEO Artie Starrs.
The strategy marks the company's latest turnaround effort as it grapples with slowing demand, rising costs, and shifting consumer preferences. Shares rose about 2.3 percent in early trading despite weaker first-quarter results.
Harley has long relied on older, wealthier customers buying high-margin touring bikes. It is now targeting younger riders with more affordable entry-level options. Central to this plan is the launch of the Sprint, a smaller 440cc motorcycle expected to be priced at around US$6,000.
"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," Starrs said.
The company is also reviving its Sportster line, one of its most iconic models, aimed at budget-conscious enthusiasts. The updated version will be priced at roughly $10,000 and feature an air-cooled engine, a hallmark of Harley's traditional design.
Harley's "Back to the Bricks" strategy targets more than $350 million in core motorcycle profit by 2027, along with over $150 million in cost reductions. A key part of the plan is expanding its higher-margin parts and accessories business, with an emphasis on customization through "blank canvas" models.
Starrs, who took over in October, said the turnaround will also depend heavily on strengthening Harley's dealer network. The company aims to improve dealer profitability and better align inventory with customer demand.
Tariffs and rising input costs remain a challenge. Harley reported $45 million in tariff-related costs in the first quarter and expects $75 million to $90 million in 2026, lower than earlier estimates of up to $105 million.
Starrs said tariffs continue to weigh on the business, though the impact is expected to ease over time. While Harley manufactures most of its motorcycles in the United States, it still depends on imported components such as semiconductors, sourcing about 75 percent of its parts domestically.
Financially, the company reported first-quarter net income of $25 million, or 22 cents per share, down sharply from $133 million, or $1.07 per share, a year earlier. Analysts had expected 27 cents per share. Revenue fell 12 percent to about $1.2 billion.
