*

Harley-Davidson ( HOG ) suspends 2025 forecasts on tariff

challenges

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First-quarter profit beat driven by cost-saving measures

and

touring model demand

(Recasts paragraph 1 with warning of hit to full-year results,

updates shares, adds analyst comment in paragraph 6 and details

from conference call throughout)

By Nathan Gomes

May 1 (Reuters) - Harley-Davidson ( HOG ) on Thursday

warned of a hit to its full-year results from tariffs and

suspended its 2025 forecasts as the motorcycle maker expects a

bumpy ride due to U.S. President Donald Trump's trade policies.

The company, which had previously projected a flat to 5%

decline in annual per-share profit, took a $9 million hit in the

first quarter and said it expects a cost headwind of between

$130 million and $175 million this year.

Still, cost-saving measures and demand for its high-margin

touring models helped Harley power a first-quarter profit beat,

nudging its shares 5% higher.

On a post-earnings call, outgoing CEO Jochen Zeitz said the

company was adjusting its supply chain to current demand and

building new capacity. It also plans to introduce entry-level

models with smaller engines to win young riders, who have stayed

away from its expensive legacy bikes

Harley said it would lean on its U.S. manufacturing and cost

cuts, among other measures, to offset the tariff hit.

"The tariff expenses are problematic. Given the current

affordability concerns, HOG has very little room to maneuver on

pricing without giving up significantly on unit sales," Longbow

research analyst David MacGregor said.

Rival Polaris, which makes the "Indian" brand of

motorcycles, has also withdrawn its annual sales and profit

forecasts and flagged a hit from weak consumer demand and

tariffs.

Harley is also in the midst of a boardroom battle with H

Partners, which wants to remove three directors from the

company's board, including its CEO, who it holds responsible for

the company's declining sales and falling stock price.

The company on Thursday confirmed a Bloomberg report from

April and said it was evaluating an investment for its financial

business.

It earned a quarterly profit of $1.07 per share, down from

$1.72 a year ago, but above analysts' estimate of 78 cents,

according to data compiled by LSEG.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shounak

Dasgupta and Shinjini Ganguli)