[NEW YORK] Harley-Davidson topped third-quarter revenue estimates on Tuesday (Nov 4) on robust demand for its high-margin custom touring models, which offset the cost of tariffs and a challenging sales environment among entry-level buyers.
Harley, which continued to withhold its annual forecast due to tariff uncertainties, has leaned on its affluent customer base over the years to drive sales of higher-margin custom cruisers that can be tailored to the buyers’ preference.
The company flagged a tariff charge of US$27 million in the quarter, up from a US$13 million hit during the prior quarter, as it navigates US President Donald Trump’s broad range of tariffs on parts and imports of crucial components such as semiconductors.
New CEO Artie Starrs said the company’s retail sales were challenged, and that it had a “lot of work ahead.”
In the last quarter, the company confirmed the launch of a smaller “Sprint” model, aimed at US and international markets with a targeted entry price below US$6,000.
Harley’s smaller models sold in foreign markets are typically manufactured in countries such as India and China with lower labour costs to keep prices competitive.
Its quarterly profit rose to US$377 million, or US$3.10 per share, from US$119 million, or 91 US cents per share, a year earlier.
Harley’s sales from motorcycles and related products rose nearly 23 per cent in the quarter ended Sep 30 to US$1.07 billion from a year earlier. Analysts on average had expected sales of about US$1 billion, according to data compiled by LSEG. REUTERS
