Leatt Corporation Global reported that second-quarter revenues were down 31 percent year-over-year to $12.4 million in the three-month period ended June 30. The decrease in global revenues during the 2023 period was said to be attributable to a $4.1 million decrease in body armor sales, a $1.8 million decrease in other products, parts, and accessories sales, and a $0.77 million decrease in neck brace sales, that was partially offset by a $1.15 million increase in helmet sales.
The company said the sales decreases come in the context of continued temporary distributor and dealer adjustments to ordering patterns as high Covid-era inventory levels continue to be digested and participation remains strong.
Least said they are particularly enthused by global sales of their helmets featuring the innovative 360 Turbine technology. Overall helmet sales increased 48 percent to $3.5 million over last year’s second quarter and accounted for 29 percent of total revenues for the second quarter of 2023.
“Compared to 2022, the best year in our company’s history, 2023 continues to be challenging for the entire MOTO and MTB industry due largely to post-COVID stocking and sell-through dynamics,” explained company CEO Sean Macdonald. “Although international distribution remains constrained, we are enthusiastic about the momentum that the Leatt brand continues to maintain and expect the early stages of a moderate recovery in domestic consumer sales to continue to appear in results over the next several quarters.”
Leatt brand momentum reportedly continues at the consumer level despite the constrained industry-wide ordering patterns. The company said global shipping and logistic costs continue to stabilize.
“We remain energized by continued growth in consumer and athlete direct sales in the U.S. and moderate improvement in buying activity at the domestic dealer level as inventory is digested,” Macdonald added. “Our leatt.com site activity and consumer purchasing continued to grow during the second quarter, increasing by 11 percent, and representing 7 percent of our global revenues year-to-date.”
Total global revenues for the first six months of 2023 were $25.4 million, a decrease of 40 percent compared to the first half of 2022.
Gross profit margins reportedly increased from 41 percent of sales in the 2022 first half to 44 percent of sales in the first six months of 2023.
Net Income was $776,139 in the second quarter, down 72 percent when compared to the second quarter of 2022.
Cash and cash equivalents increased 69 percent to $12 million at quarter-end. Cash flow generated from operations was $6.82 million for the first six months of 2023.
Photo courtesy Leatt
