CAPE TOWN, South Africa (BRAIN) — Leatt Corporation second-quarter revenue was down 18% year-over-year, but CEO Sean Macdonald said the cycling and motorcycle protective brand sees signs of future growth.
"Encouraging growth in sales at the consumer and dealer-direct level have started to filter through to ordering from our distributors, and we have started to see a level of growth in some key product categories," Macdonald said. "While there are still some challenging industry and economic headwinds globally as inventory is digested, we believe that this promising uptick in ordering patterns will filter through to our results in due course and is a trend that will contribute to growth over the next few periods and beyond."
Revenue for the quarter ending June 30 was $10 million, compared with $12 million at the same time last year. Macdonald said a lack of demand in helmets, parts, and accessories were partially offset by sales increases in body armor and neck braces.
At Eurobike in July, Leatt introduced a line of bike components — including handlebars, grips, stems, and pedals — that will be available next year.
The brand's net income loss was $1.06 million, compared with profits of $776,139 at the same time last year. Earnings per share for the quarter decreased to minus $0.17 year-over-year compared with plus $0.13.
Leatt is traded on the OTCQB markets under the LEAT symbol.
