CAPE TOWN, South Africa (BRAIN) — Leatt Corporation experienced a swift decline in first-quarter revenue compared with its record-breaking prior year period with CEO Sean Macdonald citing "supply chain dynamics" and "challenging stocking and inventory issues."
Revenue for the quarter ending March 31 was $13.1 million, down 46.1% from the same time last year at $24.2 million. Net income was $1.02 million, down 76%, compared with $4.2 million at the same time last year. Earnings per share for the quarter decreased from $0.73 to $0.17.
"Although we continue to see consumer demand for Leatt products, the first quarter of 2023 was particularly challenging in terms of growth in comparison with the 2022 period," Macdonald said. "The first quarter of 2022 was by far the strongest quarter in our company's history in terms of revenue, which increased 88% over the prior comparable period. However, we are optimistic that the arrival of the spring riding season after the extended cold weather period will increase consumer participation in outdoor activities. ... Our team remains enthusiastic about the future of our brand and company as we work toward a return to delivering double-digit growth."
Macdonald noted direct-to-consumer sales from Leatt.com and international e-commerce partners increased 10% during the first quarter.
Leatt is traded on the OTCQB markets under the LEAT symbol.
