CAPE TOWN, South Africa (BRAIN) — Leatt Corporation reported third-quarter revenue was down 48% and revenue for the first nine months of 2023 dipped 43% year-over-year.
CEO Sean Macdonald said he remains optimistic about the protective gear brand.
"Although our results for the third quarter of 2023 continued to reflect constrained ordering patterns, particularly from our international distribution partners who placed orders in early 2023 at the peak of overstocking conditions and constrained ordering sentiment, they do not reflect the current marginal uptick in sentiment that we are experiencing at the dealer and consumer level."
Global revenue for the quarter ending Sept. 30 was $12 million, compared with $23.2 million at the same time last year. For the first nine months of the year, revenue was $37.4 million, compared with $65.4 million during the first nine months of 2022.
U.S. sales were down 29% ($3.9 million) compared with the same time last year..
Net income was $460,474, down 89%, compared with $4.1 million at the same time last year. Earnings per share for the quarter decreased from $0.70 to $0.08.
Macdonald noted Leatt's renewed focus on the mountain bike market during the quarter with the hiring of Bastian Dietz as international marketing manager and Dain Zafte as vice president of sales and marketing, focusing on the U.S. market.
"We continue to build a strong and talented team of product, sales, and marketing professionals and have recently invested in our MTB business, a promising growth area for us, with the addition of two new key industry professionals.
"Constrained market challenges have resulted in an intensified commitment from our entire team to continue our growth path, and we remain enthusiastic about our ability to grow on a sustainable basis. We remain dedicated to our continued development of an innovative, multi-channel, and robust global selling organization with the ability to reach a wide consumer base of riders of all levels."
Leatt is traded on the OTCQB markets under the LEAT symbol.
