Harley-Davidson shares are up nearly one-third this year, poised for their best performance in over a decade. Despite an aging customer base with an average age of 45, new CEO Artie Starrs is leveraging nostalgia as a turnaround strategy. Key initiatives include reissuing classic models like the Superglide for America's 250th anniversary and bringing back the Sportster, phased out in 2022.
The new editions are priced modestly to attract younger fans. Beyond product revivals, Harley is investing in customization, offering better seats, louder exhausts, and higher handlebars to boost brand loyalty and revenue per customer. In July, the parts and accessories division outperformed expectations set for January.
The company also plans to slash $150 million in costs, equivalent to a fifth of its total, which analysts say could add 35 percent to its share price. While the group sells less than half the bikes compared to its peak 20 years ago and profits have fallen by two-thirds, iconic status remains strong. With celebrities like Justin Timberlake and Jason Momoa reported as fans, space exists for a new pop culture moment.
This slice of traditional Americana has further to run.
Source: Financial Times Companies · Summarized by HeadlinesBriefing