Since beginning his new role as president and CEO of Harley-Davidson last month, Artie Starrs has already highlighted several areas of the business he’s looking to improve.
The motorcycle manufacturer reported Tuesday that its third quarter global motorcycle retail sales were down 6% compared to last year. But shipments increased 33%, which led to a 23% Q3 revenue increase year-over-year for Harley-Davidson Motor Company.
The company’s recent announcement that it was selling a $5 billion stake in Harley-Davidson Financial Services is expected to unlock between $1.2 billion and $1.25 billion in discretionary funding by the end of the first quarter of 2026.
That funding will be used to pay off some of the company’s debt, repurchase shares, and for “corporate purposes.”
Arthur Starrs
“Our Q3 results demonstrate the positive impact of the HDFS transaction and reinforce the strategic value HDFS brings to Harley-Davidson’s overall business model,” said Starrs. “While retail sales remain challenged, I’m truly energized by what I’ve experienced across the company, in dealerships, and with the broader rider community. While there is a lot of work ahead of us, our success begins with our dealers – when they thrive, Harley-Davidson thrives.”
That theme resonated throughout Tuesday’s third quarter earnings call. Starrs has placed strengthening dealer profitability among his biggest priorities.
He has already made “some quick decisions” aimed at achieving this goal. The company is “accelerating its focus” on reducing overall inventory levels at dealerships, particularly within the touring and CVO product lines.
Global dealer motorcycle inventories were down 13% at the end of the third quarter compared to last year. By the end of the year, the company’s global motorcycle inventory will hover at around 43,000 units, with further reductions planned in 2026.
Harley-Davidson has also started introducing what Starrs describes as “market responsive, customer-facing promotions,” to help drive traffic to dealerships.
That promotional activity includes looking at lower APR programs for consumers that are extended for a longer period of time and experimenting with different price points.
“We do know that that our customers have a psychological barrier around different price points for what they’re willing to pay,” said Jonathan Root, chief financial officer at Harley-Davidson.
The company is also working to come up with alternative approaches to e-commerce that are more modern and align with the expectations of today’s consumer.
Starrs is aware of the difficulty the Harley-Davidson brand has in attracting newer, younger riders. He said Harley’s “tongue and cheek attitude” and playfulness, seen in some of the company’s historic marketing, will make a comeback.
“Young people are looking for something that’s fun and maybe has seriousness to it, but maybe not as serious as we’re currently presenting it,” said Starrs.
He added that the company’s new Sprint bike, set to come to market in the second half of 2026, will also address affordability issues for young riders.
“Given the continued interest rate environment, affordability will be critical in winning in the market,” said Starrs.
Harley-Davidson continues to withhold full-year 2025 guidance, citing the tariff environment and ongoing economic uncertainty. Tariffs cost the company $27 million in the third quarter, the company said.
