Harley-Davidson profit plunges as ‘back to the bricks’ reset begins

Harley-Davidson (NYSE:HOG) reported a significant drop in quarterly profit even as motorcycle demand showed signs of life, marking a turbulent start to a major strategic overhaul aimed at restoring the iconic brand’s premium status.

The Milwaukee-based manufacturer posted first-quarter consolidated revenue of $1.173 billion, a 12% decrease from the prior year.

The bottom line was hit even harder, with net income collapsing to a diluted $0.22 per share—a 79% decline compared to the same period in 2025.

Operating income plummeted 85% to $23 million, weighed down by higher expenses and $15 million in restructuring charges.

The results arrived alongside the unveiling of "Back to the Bricks," a new strategic plan led by CEO Artie Starrs.

The initiative focuses on "dealer health" and aligning production strictly with retail demand.

In a positive sign for the brand's core business, global retail sales rose 8% to 33,507 units, driven by a 14% surge in North America.

This retail momentum helped clear excess stock, with global dealer inventories finishing the quarter down 22% year-over-year.

Looking ahead, the company reaffirmed its full-year 2026 guidance, expecting shipments of 130,000 to 135,000 units and capital expenditures between $175 million and $200 million.