Protective gear specialists Leatt has reported its best ever quarter in a Q3 financial report that shows revenues that rose to $9.6 million.
Up 12%, the firm’s revenues third quarter revenues contributed to a year to date tally of $21 million. The figures saw net income rise 19% to $1.3 million.
Sales from non traditional avenues made up a surprising chunk of the firm’s good fortune, with goggles and other P&A posting strong growth. Most recently the business made further inroads into women’s specific apparel.
Sean Macdonald, Chief Executive Officer said, “The third quarter of 2019 was an exceptional quarter for Leatt, and is in fact the strongest quarter ever reported in our company’s history. Global revenues were up 12 percent, to $9.6 million compared to last year’s third quarter, and net income was up 19 percent during the quarter, thanks to sales growth in every major product category.
“While overall neck braces contracted very slightly on a year-to-date basis, our flagship neck brace and our innovative new, award-winning 3.5 neck brace with advanced materials and manufacturing technology are both experiencing growing demand. Sales of our bulletproof 6.5 goggle continues to soar, exceeding our expectations. Helmet sales, which had been under pressure for most of the year, also strengthened. Helmet revenue was up 56 percent, fueled by sales of our innovative convertible DBX 3.0 and DBX 4.0 helmets for bicycle riders. Our entire team is encouraged by the results of the quarter which we believe are a testament to our ability to not only innovate, which has always been a Leatt hallmark, but also to execute our sales strategy and operate efficiently.”
Mr. Macdonald continued, “Body armor products, which include an array of upper body and limb protectors, have become an important part of our overall revenue growth stream, representing 48 percent of our sales. Our medically proven knee braces that address a wide range of price points and consumer preferences continue to be a key revenue driver that we are continuing to refine.
“For the first nine months of the year, revenues were up 11 percent, to $21 million, and net income was up 17 percent, to $1.4 million. Sales were up in every product category except for neck braces, which contracted very slightly, only 1 percent. Helmet sales were up 4 percent, body armor sales were up 10 percent, and our other products, parts and accessories category increased 45 percent during the period.”
Mr. Macdonald said, “We are pleased by this record-breaking quarter and what it means for the future of our company. These results prove that our strategy of building a pipeline of exceptional protective gear in multiple categories can fuel revenue growth which we expect to continue in the future. Our design team is making use of advanced manufacturing technology and efficient materials to design and deliver products at exceptional value to a wide range of consumers globally. Our customers are enthusiastic about our 2020 product offering that started shipping during the third quarter and will continue through the fourth quarter and beyond.
“On an operational level, we are starting to see the benefits of our ability to operate efficiently, as evidenced by third quarter revenue increasing by more than $1 million or 12 percent, while our operating expenses increased by $200,000 or 9 percent. Salaries and wages increased 17 percent on a year to date basis, as we continue to build our in-house team of sales and e-commerce professionals in the United States and abroad. This investment is absolutely key as we grow our product categories, and work to improve distribution and grow into new consumer areas.
“Finally, we’d like to thank our Leatt family–our dedicated employees, business partners and team riders—for their continued strong efforts and support in making Leatt the success that it has become. The year 2019 is lining up to be yet another groundbreaking year for our Company in terms of product category, revenue and profitability. We believe that the Leatt brand will continue to gain traction as we design and engineer new products, invest in aspirational marketing campaigns and sponsor teams of athletes globally.”