CAPE TOWN, South Africa (BRAIN) — Leatt Corporation reported year-over-year revenue declines for 2023 (38%) and the fourth quarter (10%), but CEO Sean Macdonald said the cycling and motorcycle protective brand sees better days ahead.
Yearly revenue was $47.2 million, compared with $76.3 in 2022. Fourth-quarter revenue was $9.8 million compared with $10.9 million year-over-year.
"Although 2023 was a challenging year for the cycling and motorcycle industries, the fourth quarter presented the first indicators of a recovery in certain areas, and we remain extremely optimistic that ordering patterns will improve over time as participation remains strong globally," Macdonald said.
During the fourth quarter, Macdonald said revenue grew in "emerging market areas" in Europe, and motorcycle sales in the U.S. "increased marginally." He also said e-commerce revenue increased 23% in the quarter with further growth there expected.
The global yearly revenue decline was attributed to decreases in sales for helmets ($3.4 million), neck braces ($2.6 million), other products, parts, and accessories ($6.8 million), and body armor ($16.3 million).
Fourth-quarter net income loss was $1.56 million ($0.24 earnings per share), compared with $1.1 million ($0.18 earnings per share) at the same time last year. For 2023, net income was $803,159 ($0.13 earnings per share), compared with $10 million ($1.71 per share) in 2022.
Leatt is traded on the OTCQB markets under the LEAT symbol.
