Harley-Davidson is attempting yet another turnaround, this time by doing something that would have been almost unthinkable during its recent years of continuing to produce giant touring bikes and premium pricing - going after younger and more budget-conscious riders.

The Milwaukee-based motorcycle company announced a new strategy focused on lower-priced motorcycles, improved dealer relations and expanding its parts-and-accessories business in hopes of stabilizing sales and boosting profitability.

Shares rose about 2.3 percent in early trading Tuesday despite a weak first-quarter earnings report.

For years, Harley-Davidson leaned heavily on affluent older riders purchasing expensive touring motorcycles loaded with features and accessories. While those bikes delivered strong profit margins, critics argued the company was aging alongside its customer base while younger riders increasingly gravitated toward less expensive Japanese and European motorcycles.

A young woman and a man with Harley-Davidson motorcycles, possibly at Daytona Beach, Florida, circa 1948. The woman is astride a 1947 FL Knucklehead model. The man, a member of the Harley-Davidson Racing Team of Jacksonville Florida, is astride a Harley-Davidson WR flathead racer. (Photo by Archive Photos/Getty Images)

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Now Harley appears to be acknowledging that problem directly.

Under a plan called “Back to the Bricks,” Harley hopes to generate more than $350 million in core motorcycle-business profit by 2027 while cutting more than $150 million in costs. The strategy places greater emphasis on affordable entry-level motorcycles, dealership profitability and higher-margin accessories and customization sales.

Central to the plan is the introduction of the new Sprint, an entry-level motorcycle powered by a smaller 440cc engine expected to arrive later this year with a starting price of roughly $6,000.

CEO Artie Starrs told Reuters the bike’s size, maneuverability and pricing are aimed squarely at younger riders entering the motorcycle market for the first time.

Harley is also reviving one of its most historic names, the Sportster. The new version is expected to cost around $10,000 and returns to an air-cooled engine format closely associated with the company’s traditional motorcycles. The Sportster has been part of Harley-Davidson’s lineup for nearly 70 years and remains one of the company’s most recognizable models.

The company also plans to lean harder into its profitable parts and accessories business by promoting so-called “blank canvas” motorcycles that owners can customize themselves.

Starrs, who became CEO in October, said another key component of the strategy is strengthening Harley’s dealer network and better matching inventory levels to actual consumer demand.

The company has faced multiple challenges in recent years including slowing demand, rising material costs and tariff pressures.

Harley reported $45 million in tariff-related costs during the first quarter and now expects total tariff costs for 2026 to land between $75 million and $90 million. That figure is lower than previous estimates that approached $105 million.

Although Harley manufactures most of its motorcycles in the United States, the company still depends on imported components including semiconductors and other electronic systems used in modern motorcycles. Harley said approximately 75 percent of its parts come from American suppliers.

Harley-Davidson reported first-quarter net income of $25 million, or 22 cents per share, down sharply from $133 million, or $1.07 per share, during the same period a year ago. Analysts had expected 27 cents per share.

Quarterly revenue fell 12 percent to approximately $1.2 billion.

Still, Harley appears to be betting that smaller, more affordable motorcycles and renewed attention to dealers may help reconnect the company with a new generation of riders.