Harley-Davidson Raises North American Retail Sales 9% in Third Quarter
Key Facts
Harley-Davidson's retail sales of new motorcycles in North America rose 9% year on year in the third quarter of 2026, marking a fourth consecutive quarter of growth, according to the company's earnings statement. Growth accelerated from 3% in the second quarter, pointing to stronger consumer sales in the region. Globally, retail sales increased 5% year on year in the quarter. Chief Executive Artie Starrs said the company had made progress aligning wholesale activity with retail demand. He added that North American sales had risen for a fourth consecutive quarter.
Global growth extended to regions with varying performance: retail sales in Asia-Pacific rose 1%, while Australia and New Zealand recorded growth of 15% in the third quarter. In the previous quarter, global sales increased 1% to about 42,500 motorcycles, and North American sales reached 29,751 motorcycles, up 3% from the same period a year earlier. The comparison shows North American growth accelerating between the quarters, while global retail sales growth in the third quarter remained higher than in the second. The increase in consumer sales coincided with the company reducing shipments to dealers, a move it said was intended to support the health of its dealer network. Harley-Davidson reported global shipments of 33,616 motorcycles in the third quarter, down 8% year on year.
The company said the reduction in shipments was in line with its "Back to Basics" strategy and aimed at supporting dealer health. Global dealer inventory of new motorcycles fell 26% from the end of the third quarter of 2025 and was also down 6% from the second quarter of 2026. In North America, 2026 model-year motorcycles accounted for 91% of dealer inventory at the end of the quarter, compared with 86% in the same period a year earlier. Starrs described the inventory reduction as an additional 26% year on year, alongside 5% growth in global retail sales. The decline in shipments and inventory reflects an effort to align supply with retail sales even as recorded demand grew during the quarter.
Harley-Davidson Motor Company's revenue was $964 million in the third quarter, down 10% from a year earlier, which the company attributed to lower shipment volumes. Gross margin was 28.1%, up 173 basis points year on year. Operating expenses fell 1% to $227 million, but operating income declined 18% to $44 million. Net income attributable to the company was $43 million, compared with $377 million in the third quarter of 2025. The company attributed the difference mainly to its financial services subsidiary selling most of its securitization investments and retail finance receivables in the prior year.
Harley-Davidson raised its 2026 annual outlook, putting global retail sales and global wholesale shipments each in a range of 135,500 to 139,000 motorcycles. It also forecast operating income for its motorcycle business of between $25 million and $55 million. The outlook follows third-quarter results that combined retail sales growth and lower dealer inventory on one hand with declines in shipments and revenue on the other. The stock's latest available close was $33.07 on November 2, 2026, according to EL7 data. The evidence does not specify a later date for an outlook review or the release of the company's next results.