Harley-Davidson sales plunge as new CEO plots turnaround

Harley-Davidson‘s retail motorcycle sales plunged for the fourth straight year in 2025, as the company struggles to pull in younger riders and grapples with the punishing effects of President Trump’s trade war.

Why it matters: The motorcycle maker’s prolonged sales slide shows how even iconic American brands can struggle to adapt as younger consumers, higher costs and trade tensions reshape demand.

Driving the news: Harley on Tuesday reported a 12% drop in motorcycle sales to consumers in 2025 to 132,500.

Bike sales are now down 32% from 2021, the last year they rose.
Wholesale shipments fell 4% in the fourth quarter as Harley cut back to balance dealer inventory. Analysts had expected an increase of 22%, according to analyst estimates compiled by Bloomberg.

By the numbers: Harley’s total revenue — including wholesale shipments, parts, branded apparel and revenue from Harley’s financial arm — fell by 28% in Q4 and 14% for the full year.

“2025 was a challenging year,” the company’s new CEO, Artie Starrs, said on an earnings call. “And while some of the pressures we are facing are macro-driven, others are firmly with our control, and we are moving with urgency, focus and discipline to address them.”
The company incurred $67 million in additional costs in 2025 due to tariffs, excluding “price mitigation actions,” CFO Jonathan Root said.

What they’re saying: “Despite efforts to appeal to younger riders, the company has not been able to stem the decline in its sales volumes,” CFRA Research analyst Garrett Nelson tells Axios in an email.

“Lower sales volumes and tariffs have exacerbated bottom line results and now it appears that the company is resorting to price cuts and incentives in order to stem the volume decline.”

The intrigue: Starrs, who took the job in October after serving as CEO of Topgolf, highlighted the company’s efforts to improve the health of its dealer network, saying on the call that he’s “encouraged by the early green shoots we’re seeing.”

His plans include balancing inventory, while working to find the right portfolio — including lighter, more affordable bikes aimed at broadening the brand’s appeal, expected in the second half.
Harley shares, which were down over 10% pre-market after the earnings report first landed, rebounded to close up 4% Tuesday.

What to watch: Whether Harley can maintain pricing power.

Source: AXIOS