Tough comparable year sees Leatt revenue down 46% in Q1

Protection brand Leatt saw global revenues down 46% to $13.1 million in Q1 2023, compared to its record breaking Q1 2022.

Echoing other financial reports across the cycling industry, Q1 2023 couldn’t compare with a previous all-time high of $24.2 million revenue in Q1 2022, which was up a huge 88% on the prior year period.

International revenues were $9.2 million, a decrease of 52% year-over-year, and sales in the U.S. were $3.9 million, a 26% decrease year-over-year.

Breaking the numbers down further, Leatt detailed a £6.1 million decrease in body armour sales (in Q1 2023), a $2.6 million decrease in helmet sales, $1.7 million decline in other products and P&A and finally a $0.8 decline in neck brace sales.

Leatt also highlighted the industry-wide stocking dynamics continuing to affect distributor and dealer ordering levels. However, gross profits were up a significant 44% as supply chain constraints eased.

CEO, Sean Macdonald, commented: “The wider MOTO and MTB industry continues to experience a variety of post-Covid issues including supply chain dynamics that have created challenging stocking and inventory issues. Although we continue to see consumer demand for Leatt products, the first quarter of 2023 was particularly challenging in terms of growth in comparison with the 2022 period. The first quarter of 2022 was by far the strongest quarter in our company’s history in terms of revenue, which increased 88% over the prior comparable period. However, we are optimistic that the arrival of the spring riding season after the extended cold weather period will increase consumer participation in outdoor activities which will in turn stimulate growth as industry-wide inventory levels are digested and replenished at distributor and dealer levels. Our team remains enthusiastic about the future of our brand and Company as we work towards a return to delivering double-digit growth…

“U.S. dealers continue to manage elevated stocking levels and adjust ordering patterns accordingly and we continue to actively grow and invest in our team of U.S. employee sales reps to reach a wider dealer base of both MOTO and MTB dealers throughout the country.”

Quarter highlights included a 2023 Design & Innovation Awards for Mono Suit MTB HydraDri 5.0 and MTB Enduro Helmet, as well as a partnership with the Orbea Leatt Speed Company Racing Team and expansion into the Marathon Endurance Segment.