The second quarter earnings from Leatt have spiked on the back of a significant movement in sales of knee protection and body armour.
Revenues for the brand, which is perhaps best known for its neck braces, surpassed $5.3 million for the quarter ending June 30th. Last year that figure sat at $4.7 million. Year-to-date revenues across the globe weighed in at $11.4, up 10%.
Leatt Chief Executive Officer Sean Macdonald remarked: “We had a solid quarter and made substantial progress, particularly in terms of revenue growth and the market acceptance of our newest product lines in both the U.S. and International markets. Global revenue for the 2019 second quarter was up 10 percent to $5.3 million, driven by double digit increases in sales of our new, innovative knee braces and our array of body armor for riders’ safety and protection. Our full line of medically-proven, revolutionary knee braces continues to gain traction globally, with a 69 percent increase in sales, as compared to the second quarter of 2018.
“We are also very excited about the enthusiastic market acceptance of our new, bulletproof Velocity 6.5 goggle line, launched in March 2019. The demand has exceeded our expectations and our goggle category has become another important revenue contribution segment. Initial shipments and continued ordering patterns are showing great promise for future growth.
Mr. Macdonald continued: “It is also encouraging to see improved sales of our flagship neck brace, which remains the gold standard in extreme sports neck protection. Sales of our neck brace during the second quarter have increased by 5 percent over last year.”
Dr. Christopher Leatt, Chairman of the Board and Lead Research and Development consultant, added, “Our engineering and design team continues to operate at the cutting edge of research and development, and ranks among industry leaders in the development and refinement of safe and innovative technology for the world’s sports and sports apparel markets. We have already introduced two new revolutionary products in the first half of 2019 – our Z Frame knee brace and Velocity 6.5 goggles – and we are looking forward to introducing a new major product category in the second half of 2019.”
The increase in revenues for the second quarter was driven by an 88% increase in sales of other products, parts and accessories, a 5% increase in Neck brace sales, and a 23% increase in body armor sales, that were partially offset by a 49% decrease in helmet sales. Neck brace sales continue to generate a higher gross profit margin than other product categories.
For the 2019 second quarter, gross profit was $2.6 million, or 50% of revenues, compared to $2.4 million, or 49% of revenues, for the 2018 second quarter.
Second quarter income from operations rose 284% to $102,476 compared to a loss of ($55,664) for the second quarter of 2018.
Net income for the three months ended June 30, 2019 rose 249% to $73,700 or $0.01 per basic and diluted share, compared to a loss of ($49,455), or ($0.01) per basic and diluted share, for the same 2018 period.