Harley-Davidson tops revenue estimates on demand for custom touring models

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(Reuters) -Harley-Davidson topped third-quarter revenue estimates on Tuesday, helped by robust demand for its high-margin custom touring models, sending the motorcycle maker’s shares up more than 3% in premarket trading.

Consumers rethinking their purchases have led to lower demand for leisure vehicles in the U.S., with inflationary headwinds and tariffs adding to the strain.

However, Harley has employed several cost-saving measures and attempted to make headway with its younger drivers, who want lighter, efficient and more affordable motorbikes.

Harley has leaned on its older, affluent customers over the years, to drive sales of higher-margin custom models that can be tailored to the buyers’ preference.

In the last quarter, the company confirmed the launch of a smaller “Sprint” model, aimed at U.S. and international markets with a targeted entry price below $6,000.

Harley’s new CEO, Artie Starrs, said that its retail sales were challenged, adding that the company had a “lot of work ahead,”

It also has to navigate U.S. President Donald Trump’s broad range of tariffs over parts and imports of crucial components such as semiconductors.

The company on Tuesday said that it would continue to withhold its annual forecast, but flagged a tariff charge of $27 million.

Although, Harley’s smaller models sold in foreign markets are typically manufactured in countries with lower labor costs to keep prices competitive.

Its quarterly profit rose to $377 million, or $3.10 per share, from $119 million, or 91 cents per share, a year earlier.

Harley’s sales from motorcycles and related products rose nearly 23% in the quarter ended September 30 to $1.07 billion from a year earlier. Analysts on average had expected sales of about $1 billion, according to data compiled by LSEG.

(Reporting by Nathan Gomes in Bengaluru; Editing by Maju Samuel)