North America retail sales declined 13 % for the full year but rose 5 % in the fourth quarter, driven by strength in the touring category.

Harley-Davidson is positioning 2026 as a transition year as it works to stabilize operations, align wholesale with retail demand and restore dealer confidence following a challenging 2025.

The Milwaukee-based OEM reported a fourth-quarter net loss of $ 279 million, compared to a loss of $ 117 million a year earlier. Consolidated revenue fell 28 % to $ 496 million in the quarter. For the full year, revenue declined 14 % to $ 4.47 billion from 2024.

According to Reuters, executives pointed to ongoing“ choppiness and volatility” in global retail results amid continued pressure on big-ticket discretionary purchases. Sticky inflation, elevated borrowing costs and pricing sensitivity have weighed on demand, particularly outside North America.

“ As 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,” Starrs said in a statement.“ While near-term results reflect these actions, the progress we are seeing reinforces our confidence in the reset underway.”

RETAIL TRENDS & DEALER INVENTORY

Global retail motorcycle sales totaled 132,535 units in 2025, down 12 % year over year.

North America retail sales declined 13 % for the full year but rose 5 % in the fourth quarter, driven by strength in the Touring category. EMEA retail sales were down 24 % in Q4 and 11 % for the year, while Asia Pacific fell 15 % for the year.

Harley-Davidson Motor Company( HDMC) shipped 124,477 motorcycles in 2025, a 16 % decline from the prior year. Fourth-quarter shipments were down 4 %.

Notably for dealers, global dealer inventory of new motorcycles ended the year down 17 % versus the end of Q4 2024, reflecting the company’ s push to better match wholesale shipments with retail demand.

HDMC posted a full-year operating loss of $ 29 million, compared to operating income of $ 278 million in 2024. Gross margin declined 3.8 percentage points in 2025, pressured by lower volumes, incentive spend and tariffs.

TARIFF IMPACT & PRODUCT STRATEGY

Reuters reported that new tariffs cost Harley-Davidson $ 22 million in the fourth quarter and $ 67 million for the full year 2025. The company manufactures most of its core products domestically and sources roughly 75 % of components from U. S. suppliers, but imported components— including semiconductors— remain a cost factor.

Executives said they plan to sharpen the product lineup and adjust its e-commerce strategy under Starrs’ leadership. The company is leaning into higher-margin Touring and Custom models while preparing to introduce a smaller, lowerpriced“ Sprint” model in 2026 aimed at attracting entry-level riders.

See Harley, Page 8

JANUARY 2026 VS. JANUARY 2025

In January, dealers nationwide saw an 8.8 % increase in combined sales 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, three regions saw double-digit growth, including the Midwest, 13 %, the Northeast, 12.7 %, and the South, 10.8 %. The West gained 5.1 %, while the Northwest dipped a slight. 3 %. In services, the Northeast had 8.2 % gains, followed by the

South and Midwest, which had increases of 6.5 % and 5.2 %, respectively. The West gained 1.2 %, while the Northwest fell 1 %. Parts sales grew 15.3 % in the Northeast, 10 % in the Midwest, and 6.2 % in the South. Year-over-year decreases hit the Northwest, 8.7 %, and the West, 2.1 %. In combined revenue, the Northeast jumped up 12.5 %, followed by the Midwest, 11.7 %, and the South, 10 %, which both fi nished in the black. The West went up 3.7 %, and the Northwest fell 1.6 %.

PARTS SALES Parts revenue was up at 1,033 dealerships and down at 818

SERVICE SALES Service revenue was up at 1,002 dealerships and down at 817

MAJOR UNIT SALES Major unit revenue was up at 977 dealerships and down at 673

FOR MORE ON THE SAME STORE SALES DATA

For more information on this report and other industry data, contact: lightspeeddms. com