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Leon's avatar
$20.7MFollowers
$LEAT Q1 '23 results
▫️Revenues -46%
▫️operating income -75%
▫️Net income -75%
▫️operating cashflow of USD +5.3 million vs -0.6 million
▫️Cash +60%
▫️Consumer direct sales on Leatt.com +10%
▫️ challenging quarter in the context of distributor and dealer adjustments to ordering patterns

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Leatt
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Leatt

Joshua Simka's avatar
Joshua Simka
@tomatoMay 12
Yikes! That revenue number... Now here is a piece of corporate speak if I've ever heard one it:

Although the results of the first quarter of 2023 were particularly challenging in the context of distributor and dealer adjustments to ordering patterns as the industry continues to digest areas of elevated stocking levels due to post-Covid supply chain dynamics, we believe that the onset of the delayed spring season will mean strong consumer participation in outdoor activities as we look towards the second half of 2023.

What do they mean by "onset of the delayed spring season?"
Leon's avatar
Leon
@mavixMay 12Author
@tomato The distributors still have stocks from older seasons & they‘re working on digesting these. But the D2C trends and direct dealer sales are indicating that these problems are solved in the coming months. That means that the typical season start is a bit delayed for order patterns & also the typical order pattern in 2022 was different because of covid. So Q1 '22 was exceptionally high while Q1 '23 was affected by the market wide circumstances. The numbers look really bad but i think they‘re better than most expected
Nathan Worden's avatar
Nathan Worden
@nathanwordenMay 13
Silver lining of consumer direct sales being up 10% is nice.

Sounds like they really had extra inventory after supply-chain dynamics loosened up.
Leon's avatar
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