Harley-Davidson Inc. reported its biggest quarterly profit beat in two years on Tuesday.

This is its steepest decline in domestic sales in eight years and it has also warned that motorcycle shipments for the year will be at the lower end of its forecast as it faces higher tariff-related costs. Milwaukee-based Harley’s shares reversed course and were down 5 per cent, giving up pre-market gains after the company recorded its best quarterly profit in two years.

U.S. retail sales plunged 13 percent in the three months ended in September, the steepest quarterly drop in more than eight years.

The 115-year old Milwaukee-based company’s demographic challenges in the domestic market are well documented. The core customers are growing older and outreach efforts to attract new and young riders have yet to show results. In addition, President Donald Trump’s call to boycott the motorcycle manufacturer for its decision to move production for European markets overseas has only compounded the company’s troubles. Harley said on Tuesday it could see up to $48 million in costs from tariffs in 2018.

To counter weak demand at home, Harley plans to make deeper inroads into some of the fastest growing two-wheeler markets in Asia through lightweight motorcycles. Analysts expect 2018 to be the third straight year of declining sales. International retail sales, however, rose about 3 percent, led by Europe.