How did Harley-Davidson (NYSE:HOG) perform in Q1 2026?

Harley-Davidson reported Q1 2026 revenue of $1.173 billion, a 12% decrease year-over-year. The company’s net income fell by 79%, to a diluted $0.22 per share, reflecting a sharp decline in profitability. Operating income dropped 85% to $23 million, primarily due to higher expenses and $15 million in restructuring charges. Despite this, global retail sales rose 8%, driven by a 14% increase in North America.

What caused the drop in Harley-Davidson’s profitability in Q1 2026?

The significant drop in Harley-Davidson's profitability in Q1 2026 was largely driven by higher operating expenses and $15 million in restructuring charges related to its strategic overhaul. These factors overshadowed the positive growth in retail sales and contributed to the 79% decline in net income and the 85% drop in operating income.

What is Harley-Davidson’s new strategic plan for 2026?

Harley-Davidson unveiled its "Back to the Bricks" strategic plan under CEO Artie Starrs. The initiative focuses on improving "dealer health" and aligning production strictly with retail demand. This strategy is aimed at restoring the brand’s premium status and optimizing operational efficiency by reducing excess inventory and ensuring that production matches customer demand more closely.

How did Harley-Davidson’s global retail sales perform in Q1 2026?

Global retail sales for Harley-Davidson rose 8% in Q1 2026, totaling 33,507 units. This growth was driven by a strong 14% increase in North America, indicating that the core market remains robust despite broader challenges. The increase in retail sales helped clear excess inventory, with global dealer inventories down 22% year-over-year.

How did Harley-Davidson manage its inventory levels in Q1 2026?

Harley-Davidson successfully reduced its global dealer inventories by 22% year-over-year in Q1 2026. This inventory reduction was a positive sign of improving retail sales momentum and aligned with the company’s strategy to better match production with actual demand, a key focus of its "Back to the Bricks" plan.

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

Written by Mahathir BayenaPublished May 5, 2026, 12:00 AMLast Updated Jul 6, 2026, 10:28 AM

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.

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

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