Investing.com – Harley-Davidson stock (NYSE:) surged 7% Wednesday as sales of its iconic motorcycles left supply chain challenges behind to go past estimates in the third quarter.

Adjusted profit per share of $1.18 was well ahead of Wall Street analysts’ estimate of 78 cents as the company shipped 12% more motorcycles and sold more of the higher-margin models.

As the comparison period for Rewire restructuring fees was longer, operating margin grew by 360 basis point to 8.4%. One basis point is one hundredth percent.

‘Rewire’ is the name the company gave to the exercise it undertook to overhaul its business. It was complete in January, and the company says it laid the foundation for The Hardwire, the company’s 5-year strategic plan to deliver profitable and long-term growth.

Revenue from motorcycles, and associated products, rose 20% in the third quarter to $1.16 billion. To $1.36 billion, total revenue rose 17%

The only region that saw growth in retail sales during September quarter was North America. Rest of the world was still affected by pandemics-driven restrictions.

As more people choose to ride the motorcycles of its dealer and to adhere to social distancing, inventory fell around 4%.

“We are trying to align supply and demand,” Gina Goetter, Chief Financial Officer at Reuters told analysts on a conference call.

Harley said to Reuters that the company is considering imposing surcharges next year on all its motorcycles. The current surcharges are only applicable in America. This was in response to rising inflationary pressures. In order to compensate for higher raw materials costs, Harley raised its surcharge to 3.5% in its largest markets to 3.5% during the third quarter.

Its forecast for 30%-35% growth in annual motorcycle sales was maintained by the company.