CAPE TOWN, South Africa (BRAIN) — Leatt Corporation posted its first year-over-year revenue growth — 1 % — in two years when it released its third-quarter earnings report Tuesday.
Revenue for the protective brand for the period ending Sept. 30 was $12.1 million compared with $12 million at the same time last year. The last time Leatt reported a revenue increase was the third quarter of 2022.
A 12% increase in direct-to-consumer sales contributed to the growth.
"We are all very encouraged by the results of the third quarter of 2024, which we see as a pivotal quarter as global revenues returned to growth, albeit still marginal at this stage," said CEO Sean Macdonald.
Body armor, helmet, and neck brace sales all increased during the quarter as inventory levels stabilize, but footwear sales — including mountain bike shoes and moto boots — were down. The decline was "particularly constrained in the current environment with aggressive competitive pricing and high inventory levels causing very cautious buying at the dealer level," Macdonald said. "We do expect this area to improve as inventory is digested, and ordering continues to pick up."
Net income for the quarter was $115,837, down 75% from $460,474 at the same time last year. Earnings per share fell from $0.08 to $0.02.
Leatt is traded on the OTCQB markets under the LEAT symbol.
