Leatt Corporation Reports Mixed Q3 and Nine-Month Results, with Revenue Growth in Q3 Offset by Decline in Nine-Month Period

Leatt Corporation reported its financial results for the three and nine months ended September 30, 2024, showing mixed performance compared to the same periods in 2023. For the third quarter of 2024, revenues increased slightly to $12.14 million, a 1% rise from $12.01 million in Q3 2023. This growth was driven by a $0.27 million increase in body armor sales, a $0.14 million increase in helmet sales, and a $0.04 million increase in neck brace sales, although these were partially offset by a $0.32 million decrease in other products, parts, and accessories.

In contrast, revenues for the nine months ended September 30, 2024, decreased by 12% to $32.83 million from $37.44 million in the prior year. The decline was primarily attributed to a $3.38 million drop in helmet sales and a $0.86 million decrease in body armor sales. International revenues also fell, accounting for 66% of total revenues in 2024, down from 70% in 2023.

Gross profit for the third quarter of 2024 was $5.17 million, slightly up from $5.12 million in Q3 2023, while gross profit for the nine-month period decreased to $13.10 million from $16.23 million, reflecting a 19% decline. The company's net income for Q3 2024 was $115,837, a significant decrease of 75% from $460,474 in Q3 2023. For the nine months, Leatt reported a net loss of $1.76 million, compared to a net income of $2.26 million in the same period last year.

Total operating expenses for Q3 2024 rose to $5.27 million, a 17% increase from $4.50 million in Q3 2023, driven by higher salaries, advertising, and general administrative costs. Notably, salaries and wages increased by 32% to $1.68 million, while advertising and marketing expenses surged by 34% to $1.30 million.

The company maintained a strong cash position, ending the third quarter with $12.47 million in cash and cash equivalents, up from $10.78 million a year earlier. However, net cash provided by operating activities for the nine months ended September 30, 2024, was $2.98 million, down from $6.59 million in 2023.

Leatt continues to navigate challenges such as global economic conditions and inventory dynamics affecting distributor orders. The company has not yet experienced significant impacts from U.S. tariffs on imports from China, but future increases could disrupt supply chains. The firm remains focused on its core product lines, including the Leatt-Brace® system, and is actively managing its operational costs to align with revenue trends.