Citing “temporary distributor and dealer adjustments” to ordering patterns as high COVID-era inventory levels continue to be digested, Leatt Corporation Global reported that second-quarter revenues were down 31% year-over-year. “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.
Revenue was $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.
“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,” claims Macdonald. He remains positive, particularly about global sales of their new helmets featuring 360 Turbine technology. Overall helmet sales increased 48% to $3.5 million over last year’s Q2 numbers and accounted for 29% of total revenues for the second quarter of 2023.
“We remain energized by continued growth in consumer- and athlete-direct sales in the U.S.,” Macdonald added. “Our leatt.com site activity and consumer purchasing continued to grow during the second quarter, increasing by 11% and representing 7% of our global revenues year-to-date.” Total global revenues dropped 40% in the first half of 2023 to $25.4 million.
