Leatt Corporation Reports $44.03 Million Revenue for Fiscal Year 2024, 7% Decrease from Previous Year

Leatt Corporation reported a revenue of $44.03 million for the fiscal year ending December 31, 2024, marking a 7% decrease from the previous year's revenue of $47.24 million. The decline in revenue was primarily attributed to a significant drop in helmet sales, which fell by $2.73 million, alongside decreases in neck brace and body armor sales. Despite the overall revenue decline, the company noted a 15% increase in direct consumer sales and a slight increase in dealer sales, indicating a shift in purchasing patterns as distributors managed elevated inventory levels.

The company's gross profit also decreased to $17.71 million, or 40% of revenues, down from $19.81 million, or 42% of revenues, in 2023. This reduction in gross profit percentage was influenced by promotional selling strategies aimed at moving slower inventory. Operating expenses rose by 14% to $21.02 million, driven by increased salaries and marketing expenditures as the company expanded its sales and marketing teams. Consequently, Leatt reported a net loss of $2.20 million for 2024, a significant decline from a net income of $803,159 in the prior year.

In terms of strategic developments, Leatt has continued to expand its product offerings, launching new products aimed at the adventure motorcycle market in 2023. The company operates through a global network of approximately 61 distributors and has seen a notable increase in product royalty income, which rose by 249% to $326,614, reflecting stronger sales of licensed products. The company also maintains a focus on research and development, employing four full-time staff dedicated to this area, and utilizing external consultants to enhance its product lines.

Leatt's operational metrics indicate a stable customer base, with approximately 741 active distributors in the U.S. and 249 in South Africa. The company has also been proactive in managing its supply chain, with a significant portion of its products manufactured in China, while also building capacity in Thailand and Bangladesh. As of December 31, 2024, Leatt had cash and cash equivalents of $12.37 million, an increase from $11.35 million in 2023, which the company believes is sufficient to meet its operational needs for the foreseeable future.

Looking ahead, Leatt anticipates continued growth in the protective equipment market, driven by increasing demand for its products. The company is focused on expanding its market share and enhancing brand loyalty through targeted marketing strategies and product innovation. However, it acknowledges potential risks, including economic fluctuations and supply chain disruptions, which could impact its financial performance. The management remains committed to navigating these challenges while pursuing its long-term growth objectives.