Powersports Business August 2026 | Page 11

www. PowersportsBusiness. com

FINANCE

Powersports Business • August 2026 • 11

S & P downgrades Harley to‘ junk grade,’ cites profitability concerns over new strategy

Harley- Davidson’ s new strategy to regain market share with more affordable motorcycles has drawn skepticism from one of Wall Street’ s major credit rating agencies. While we don’ t usually pay that much attention to creditrating news, this one stood out for its lack of confidence in Harley CEO’ s new approach.
The downgrade centers on Harley- Davidson’ s recently announced“ Back to the Bricks” strategy, unveiled in May, which shifts the company’ s focus toward attracting new riders through lower- priced motorcycles. The plan
includes the return of the Sportster lineup and the introduction of a new Sprint model, with entry- level pricing expected to start around $ 10,000 when the motorcycles reach dealerships beginning in late 2026 and into 2027.
S & P said the strategy could help Harley- Davidson recover market share that has steadily declined in recent years. According to the agency, Harley’ s share of U. S. motorcycle registrations fell from approximately 49 % in 2019 to about 34.5 % in 2025. If the strategy
See S & P, Page 12
DEALER FINANCIAL SNAPSHOT

NORTHWEST

2.1 % Parts Department 2.7 % Service Department 3 % Major Units 2.9 % Overall

WEST

4.2 % Parts Department 5.8 % Service Department 6 % Major Units 5.8 % Overall

UNITED STATES

6.3 % Parts Department 8.3 % Service Department 9.5 % Major Units 9.1 % Overall

MIDWEST

9 % Parts Department 9.1 % Service Department 11.8 % Major Units 11.3 % Overall

SOUTH

5.2 % Parts Department 8.7 % Service Department 8.6 % Major Units 8.4 % Overall

NORTHEAST

9.9 % Parts Department 12.5 % Service Department 14.4 % Major Units 13.8 % Overall
JUNE 2026 VS. JUNE 2025
Dealers bounced back after a down May and had a 9.1 % increase in combined sales in June compared to the same month last year, according to composite data from more than 1,800 U. S. dealers that use Lightspeed DMS. In major unit sales, both the Northeast, 14.4 %, and the Midwest, 11.8 %, had double- digit gains. The South and West were also up 8.6 % and 6 %, respectively, and the Northwest gained 3 %. In services, the Northeast again led the
way, up 12.5 %, followed by the Midwest, up 9.1 %, and the South, which gained 8.7 %. The West was up 5.8 %, and the Northwest gained 2.7 %. In parts sales, all regions were in the black. The Northeast had the largest increase, 9.9 %, followed by the Midwest, up 9 %, and the South, 5.2 %. The West gained 4.2 % for the month, while the Northwest was up 2.1 %. For combined sales, the Northeast increased 13.8 %, followed by the Midwest at 11.8 %. The South( 8.4 %), the West( 5.8 %) and the Northwest( 2.9 %) also saw increases.
PARTS SALES Parts revenue was up at 1,165 dealerships and down at 817
SERVICE SALES Service revenue was up at 1,218 dealerships and down at 728
MAJOR UNIT SALES Major unit revenue was up at 1,083 dealerships and down at 697
FOR MORE ON THE SAME STORE SALES DATA
For more information on this report and other industry data, contact: lightspeeddms. com