CAPE TOWN, South Africa (BRAIN) — Leatt Corp. had its best first quarter in company history, helped by the global launch of its mountain bike shoe line.
Revenues were up 24% year-over-year to $7.5 million for the protective gear manufacturer. Total operating expenses for the first quarter were $3 million, up 6%, compared to $2.9 million for the 2019 first quarter. Net income was $362,448 or $0.07 per basic and diluted share, compared to $9,238, or $0.00 per basic and diluted share, for the 2019 first quarter.
While the March launch of the mountain bike shoe line generally raised hopes for the first quarter, the COVID-19 pandemic tempered Leatt's first-quarter projections earlier this year.
"With global headwinds from the COVID-19 pandemic expected to affect our revenues in the next several quarters, we are focused on operating more efficiently while continuing to develop our pipeline of innovative, medically proven products that define Leatt as a premium Head to Toe brand," said Leatt CEO Sean Macdonald.
Leatt's sales of its newest body armor products also increased sales, Macdonald said, citing upper body protection and motorcycle boots. Body armor sales, which are 55% of Leatt's revenue, increased 69% to $4.1 million.
Macdonald said the pandemic's future impact makes him wary to forecast what's to come.
"Our worldwide distributor buying patterns have been understandably conservative as they have been impacted by a range of policy responses and implementation," he said. "While the situation is extremely fluid, we are continuing to closely monitor and navigate local governmental requirements, our global customer needs, and consumer buying trends. But we also know consumers are eager to return to riding. We are encouraged that our manufacturing partners in Asia are recovering well, and that the production of stocking orders of our 2021 line of protective gear has commenced as planned. We are also encouraged to see key international geographical areas and domestic locations in the United States slowly relax lockdown measures to allow for limited outdoor activity within established distancing guidelines."
Leatt's corporate headquarters are in Cape Town. Its stock is traded on the OTCQB exchange under the LEAT symbol. Leatt stock quote at Marketwatch.com.
