Feb 10 (Reuters) - Harley-Davidson reported a wider loss in the fourth quarter on Tuesday, hurt by a pullback in consumer spending toward recreational vehicles, sending shares of the legacy motorcycle maker down 6% in premarket trading.
The company's results highlight how inflation has squeezed household budgets and prompted Americans to rethink big-ticket purchases such as motorcycles.
The brand was already feeling the strain of softer volumes, relying partly on cost cuts to shore up margins and demand
for its higher-margin touring and custom motorbikes from wealthier customers.
Last year, Harley announced a smaller, lower-priced "Sprint" model, slated for release in 2026, in hopes of drawing in entry-level riders and widening its reach with younger customers. The model is expected to launch with a targeted entry price below $6,000.
"We close out a challenging year for the company, we are taking deliberate actions to stabilize the business, restore dealer confidence, and align wholesale activity with retail demand, said Harley-Davidson CEO Artie Starrs.
Harley also had to contend with a broad range of U.S. tariffs on imports of crucial components such as semiconductors, which are used to power modern motorbikes.
Its gross margin fell by 3.8 percentage points in 2025, compared with the year earlier, hurt by tariffs and lower volumes.
Harley reported a net loss of $279 million, or $2.44 per share, for the fourth quarter, compared with a loss of $117 million, or 93 cents per share, a year ago.
Overall quarterly revenue dropped 28% to $496 million.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar)
