(Reuters) -Harley-Davidson topped third-quarter revenue estimates on Tuesday on robust demand for its high-margin custom touring models, which offset the cost of tariffs and a challenging sales environment among entry-level buyers.
Shares of the motorcycle maker rose nearly 2% in premarket trading.
Harley, which continued to withhold its annual forecast due to tariff uncertainties, has leaned on its affluent customer base over the years to drive sales of higher-margin custom cruisers that can be tailored to the buyers’ preference.
The company flagged a tariff charge of $27 million in the quarter, up from a $13 million hit during the prior quarter, as it navigates U.S. President Donald Trump’s broad range of tariffs on parts and imports of crucial components such as semiconductors.
New CEO Artie Starrs said the company’s retail sales were challenged, and that it had a “lot of work ahead.”
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 smaller models sold in foreign markets are typically manufactured in countries such as India and China 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)
