Leatt Corporation (PNK:LEAT) Q3 2023 Earnings Call Transcript

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Chris Jarrous: Okay, great. You’ve been able to grab some great execs from peers who are letting people go. Is that – do you have what you need now? Or are you still on the look for more?

Sean MacDonald: Yes, I’d say we’ve also added a few product development team members to help us in new key categories that we really want to refine. And in terms of the – in the U.S., we still are building out the sales rep and employee rep capabilities there, so there will still be a few key people that we want to bring on there. But in terms of execs from the high-level guys, I think we’ve got a really great team and a really great family there of very committed team members. So I think we’re pretty good there. And it will be more on the actual sales and rep force that will be working really hard as part of our focus on MTB, particularly in the U.S.

Chris Jarrous: Okay, great. And last question for me is just one, as you launch these new product lines and looking at the current product lines, I mean, any areas in particular that hold excitement for you or you think when things normalize, they’ll kind of be looked at as standout products?

Sean MacDonald: For sure. I mean I really would say that the Adventure line is a very big opportunity. There’s a bit of crossover between Adventure and commuter road market in Europe. We’ve already got great feedback from some chain stores on the European side, so we’ve got great products. With contribution with our existing and distribution partners, I would expect that, that will be something – over the next several quarters, that will start to show, and that’s great. And then I’ve been talking a lot about the Endurance segment on the MTB side. And I must say there’s a huge opportunity there. It’s not only Endurance, which is your mountain biking, typical mountain biking rider. It’s also the gravel bike segment, which is the fastest-growing segment outside of e-bikes at the moment.

And we’ve got Head to Toe products that we’ll be launching that will be applicable to all of those kinds of segments. So I think there’s a huge opportunity there. Of course, MTB is currently under a little bit of pressure still in terms of stock. But once the stock falls through the system and the next wave of growth comes because it is going to come, I think we’ll be well positioned to leverage our position as a niche brand that caters for a very wide rider audience.

Chris Jarrous: Okay. That’s great. Fantastic. And talk to you soon, Sean. Thank you.

Sean MacDonald: Thanks a lot Chris. Talk soon.

Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to Sean for closing comments.

Sean MacDonald: Thank you all for joining us today. We look forward to our next call to review the results of the 2023 fourth quarter.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.

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