Harley-Davidson's stock surged 5.04% during intraday trading on Tuesday, as investors responded positively to the company's new strategic direction and better-than-expected quarterly performance.

The motorcycle maker reported first-quarter revenue of $1.17 billion, beating analyst estimates of $1.01 billion, despite a year-over-year decline. While earnings per share of $0.22 missed expectations, investors focused on positive operational metrics including a 14% increase in North American retail motorcycle sales and an 8% growth in global retail sales. The company also reduced dealer inventories by 22% compared to the prior year, indicating healthier supply-demand alignment.

Simultaneously, Harley-Davidson unveiled its "Back to the Bricks" strategic plan under new CEO Artie Starrs. The turnaround strategy focuses on introducing affordable models like the $6,000 Sprint and reviving the iconic Sportster, targeting over $350 million in motorcycle division EBITDA by 2027 and over $150 million in fixed cost reductions. The company also plans to help dealers double profitability in 2026 and quadruple it by 2029. Additionally, Harley-Davidson provided an improved tariff outlook, expecting costs of $75-$90 million for 2026, down from previous estimates of up to $105 million.