Why Is Harley-Davidson Stock Sinking Tuesday?

Harley-Davidson, Inc. (NYSE:HOG) stock fell Tuesday after reporting third-quarter fiscal 2025 earnings.
The company reported a 23% year-on-year (Y/Y) quarterly sales growth to $1.074 billion, beating the analyst consensus estimate of $1.005 billion.
Harley-Davidson’s earnings per share of $3.10 topped the analyst consensus estimate of $1.46.
Also Read: Harley-Davidson Names Artie Starrs CEO As Sales Decline
Global motorcycle retail sales down 6% Y/Y, driven by a volatile macroeconomic environment and overall consumer uncertainty.
Revenue from the Motorcycles and Related Products segment (HDMC) increased 23%, driven by an increase in wholesale shipments, where net global pricing was flat and product mix and foreign currency were slightly favorable.
Global motorcycle shipments rose by 33%.
Revenue from Motorcycles increased 34%, Parts & Accessories dropped 4%, Apparel rose 1%, and Licensing grew by 42%.
The gross profit margin in HDMC contracted 370 basis points Y/Y to 26.4% due to unfavorable operating leverage, the cost of new or increased tariffs implemented this year, and unfavorable foreign currency impacts.
Consolidated operating income rose 349% driven by HDFS operating income, which was favorably impacted by the HDFS transaction. At the LiveWire segment, the operating loss improved by $8 million, 30% lower than the prior year’s loss.
Harley-Davidson generated approximately $417 million in cash from operating activities in the quarter. As of September 30, it held cash and equivalents of $1.8 billion.
Buyback
Harley-Davidson also announced plans to enter into a $200 million accelerated share repurchase (ASR) agreement with Goldman Sachs.
The announcement is part of its previously disclosed $1 billion share buyback program scheduled for completion by the end of 2026.
The company expects to complete transactions under the ASR agreement by the first quarter of 2026.
Product Offering
Harley-Davidson launched new motorcycles from its 2026 lineup on H-D.com and premiered its