Harley-Davidson has named Artie Starrs, the current head of sports-entertainment company Topgolf, as its new president and CEO. Starrs will take over from Jochen Zeitz, who has served as chairman and CEO since 2020 and recently withstood a shareholder attempt to remove him from the board. Troy Alstead, the presiding director of Harley’s board, will become the new chairman. The leadership change will become effective October 1. Harley shares were largely unchanged during midday trading.
Starrs, 48, has been CEO of Topgolf International, a subsidiary of Topgolf Callaway Brands, since 2021. Prior to that, he held the role of global CEO at Pizza Hut. His arrival at Harley comes as the iconic motorcycle maker grapples with nearly two decades of declining demand, highlighted by a 15% drop in quarterly retail sales year-over-year in July.
The incoming CEO will face significant hurdles, including an aging rider base and frustrated dealers, some of whom claim that the company’s profit focus has come at their expense. Several Harley dealerships have shuttered over the past year. Charlie Cole, owner of eight dealerships, emphasized the importance of dealer profitability for the brand’s survival: “Dealers can’t provide premium service without being profitable. Without dealers the motor company has no distribution network.”
Analyst Joe Altobello of Raymond James, who covers both Harley and Topgolf, warned that Starrs could face a steep learning curve with manufacturing and dealer relations. Dealer Teddy Morse quipped, “Pizza, golf and Harley—let’s see if that combo works.”
Just before Starrs’ appointment, Harley announced two major moves: selling nearly a 10% stake in its financing arm to two investment firms and launching a new motorcycle model priced below $6,000. Under Zeitz’s leadership, Harley prioritized higher-end touring and cruiser motorcycles, a strategy some dealers criticized for alienating entry-level customers.
H Partners, one of Harley’s largest investors, led a proxy fight earlier this year aiming to oust Zeitz and two other directors, blaming them for a share price decline and “cultural depletion.” The trio survived the vote at the May shareholders meeting.
Topgolf, meanwhile, has faced its own struggles. Its parent company revealed plans last year to spin off the recreational-driving-range business following a troubled merger with golf-club maker Callaway in 2020. Similar to Harley, Topgolf has been hit by slowing consumer spending, with its first-quarter net revenue down nearly 7% year-over-year, according to Topgolf Callaway’s May earnings report.
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