Harley-Davidson said the brisk sales of its less expensive bikes contributed to better-than-expected second-quarter earnings, but shares were still down 5% on year-over-year declines in profit and revenue.

The motorcycle manufacturer released a $16,000 bike, the 1970s-themed Super Glide, late in the quarter. The price is on the low side for mid-range Harleys, and Chief Executive Artie Starrs said sales have been strong. The same was true for Harley's cheapest bike, the Nightster, which retails for less than $10,000.

The results were in keeping with Starrs's strategy of broadening Harley's customer base with less expensive bikes. A $6,000 motorcycle is set to debut later this year, while the Sportster, a beloved model mothballed in 2022, will return next year at a price of around $10,000.

The company boosted its guidance on full-year retail sales, predicting it will sell between 133,500 to 138,500 bikes this year. Even on the low end, that would mark the first annual increase since 2021.