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Wall Street Analysts Believe Lakeland Industries (LAKE) Could Rally 63.85%: Here's is How to Trade
ZACKS· 2025-10-02 14:56
Lakeland Industries (LAKE) closed the last trading session at $14.8, gaining 0.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $24.25 indicates a 63.9% upside potential.The average comprises four short-term price targets ranging from a low of $20.00 to a high of $27.00, with a standard deviation of $3.1. While the lowest estimate indicates an increase of 35.1% from the current p ...
Lakeland Fire + Safety Completes Acquisitions of Arizona PPE Recon, Inc. and California PPE Recon, Inc.
Globenewswire· 2025-09-15 20:01
Core Insights - Lakeland Industries has successfully acquired Arizona PPE and California PPE, expanding its presence in the U.S. personal protective equipment market and enhancing its fire service offerings [1][4][5] - The acquisitions are expected to add approximately $5 million in annual recurring revenue to Lakeland's operations [1] Company Overview - Arizona PPE is a leading UL-certified independent service provider in Arizona, specializing in decontamination, inspection, and repair of firefighting garments, as well as offering training and rental services [2][8] - California PPE is a rapidly expanding UL-certified independent service provider in California, focusing on similar services for firefighting equipment and has a strong vision for growth in the Southern California area [3][9] Strategic Importance - The acquisitions are seen as complementary to Lakeland's existing fire service business, providing opportunities for growth in gear rentals and manufacturing [5] - The integration of Arizona PPE and California PPE is expected to leverage Lakeland's existing strengths in Asia and Australia to develop a robust North American platform for advanced decontamination and rental services [4][5]
Lakeland Industries (LAKE) Traded Down Due to Delayed Orders And Tariff Disruptions
Yahoo Finance· 2025-09-15 13:15
Group 1: Rewey Asset Management Overview - Rewey Asset Management's "RAM Smid Composite" increased by 6.11% in Q2 2025, slightly trailing the benchmark Russell 2500 Value Total Return Index which gained 7.29% [1] - Year-to-date, the composite returned -1.29% compared to a 1.03% gain for the benchmark [1] - The firm expresses confidence in the Smid value sector as it approaches the second half of 2025 [1] Group 2: Lakeland Industries, Inc. Performance - Lakeland Industries, Inc. (NASDAQ:LAKE) was highlighted as the weakest performer for Rewey Asset Management in Q2 2025, declining by 31.40% due to a soft FY1Q26 report with revenue and earnings below expectations [3] - The stock's one-month return was -2.86%, and it lost 28.32% of its value over the last 52 weeks, closing at $14.63 per share with a market capitalization of $139.199 million on September 12, 2025 [2] - The company is transitioning to a full-service provider of firefighter gear, with expectations to improve margins through recent acquisitions and fulfillment of delayed orders [3] Group 3: Market Sentiment and Hedge Fund Activity - Lakeland Industries, Inc. was held by 11 hedge fund portfolios at the end of Q2 2025, down from 14 in the previous quarter [4] - While acknowledging Lakeland's potential, the company believes certain AI stocks offer greater upside potential and carry less downside risk [4]
Lakeland Fire + Safety Awarded USD $5.6 Million Contract from Hong Kong Fire Services Department
Globenewswire· 2025-09-15 12:31
Core Insights - Lakeland Industries, Inc. has secured a three-year contract valued at approximately USD $5.6 million with the Hong Kong Fire Services Department for advanced decontamination and maintenance services for firefighter protective gear [1][3][4] Company Overview - Lakeland Fire + Safety is a leading global manufacturer of protective clothing and apparel for various sectors, including industry, healthcare, and first responders [1][6] - The company has been supplying firefighter ensembles to the Hong Kong Fire Services Department since 2011 and has a strong presence in the Asia Pacific market [2][4] Contract Details - The contract will cover advanced decontamination services and maintenance for an estimated 14,500 firefighter ensembles annually, enhancing firefighter safety by removing harmful carcinogens [3][4] - The contract was awarded through a competitive selection process involving several leading companies in the industry [3] Financial Performance - In the fiscal second quarter of 2026, Lakeland reported a 36% increase in net sales to a record USD $52.5 million, driven by a 113% increase in fire services products [5] - Sales in the Asian market reached USD $3.7 million for the same quarter, representing 7% of total revenue, indicating significant growth potential in this region [5]
Lakeland: First Quarter Of Organic Growth, But The Trend Is Still Stagnation
Seeking Alpha· 2025-09-10 19:47
Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]
Despite Some Pain, Lakeland Industries Is Still Not Suited For A Downgrade
Seeking Alpha· 2025-09-10 13:00
Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Group 1 - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] - Subscribers are offered a two-week free trial to explore the services related to oil and gas investments [2]
Lakeland Industries, Inc. (NASDAQ:LAKE) Surpasses Earnings Expectations
Financial Modeling Prep· 2025-09-10 03:00
Core Insights - Lakeland Industries, Inc. specializes in manufacturing and selling protective clothing for industrial and public safety markets, with significant sales in the U.S. and Europe [1] - The company reported earnings per share of $0.08, surpassing the estimated loss of $0.04, despite revenue of approximately $52.5 million being below the estimated $59.6 million [2][4] - A notable 36% increase in net sales was driven by a 113% rise in fire services product sales, which now account for 49% of total revenue [2][4] - U.S. net sales surged by 78% to $22.1 million, while European sales rose by 113% to $15.1 million [2] - The company's gross margin improved by 240 basis points to 35.9%, supported by lower operating expenses [3][4] - Lakeland reported a positive net income of $0.8 million and an adjusted EBITDA of $5.1 million, excluding foreign exchange impacts [3] - The company updated its fiscal year 2026 revenue and adjusted EBITDA guidance due to global tariff uncertainties [3] - The price-to-sales ratio is 0.77, indicating the stock is valued at less than one times its sales [3] - Lakeland maintains a low debt-to-equity ratio of 0.28 and a strong current ratio of 3.88, reflecting good short-term financial health [3]
Lakeland(LAKE) - 2026 Q2 - Quarterly Results
2025-09-10 21:20
[Executive Summary](index=1&type=section&id=Executive%20Summary) Lakeland Fire + Safety reported record fiscal Q2'26 net sales of $52.5 million, a 36% increase YoY, primarily driven by a 113% surge in Fire Services products. The company achieved positive net income of $0.8 million and improved sequential gross margin, despite ongoing global tariff uncertainties [Q2'26 Key Financial Highlights](index=1&type=section&id=Q2%2726%20Key%20Financial%20Highlights) Fiscal Q2'26 saw significant financial improvements, including a 36% increase in net sales to $52.5 million and a return to positive net income of $0.8 million, a 157% improvement YoY. Adjusted EBITDA excluding FX also grew substantially by 89% to $5.1 million Fiscal Q2'26 Key Financial Highlights (YoY Comparison) | Metric | Q2'26 | Q2'25 | $ Change YoY | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $52.5M | $38.5M | $14.0M | 36% | | Gross Profit | $18.8M | $15.2M | $3.6M | 24% | | Gross Margin | 35.9% | 39.6% | — | (370)BPS | | Net Income (Loss) | $0.8M | ($1.4M) | $2.2M | 157% | | Adjusted EBITDA ex. FX | $5.1M | $2.7M | $2.4M | 89% | [Q2'26 Key Operational Highlights](index=1&type=section&id=Q2%2726%20Key%20Operational%20Highlights) Operational highlights for Q2'26 include robust growth in Fire Services products, strong performances in North America and Europe, and strategic initiatives like a $6.1 million property sale and facility closures aimed at cost reduction and efficiency - Fire Services product line sales increased by **$13.6 million** or **113% YoY**, reaching **$25.6 million** and representing **49% of total revenue**[1](index=1&type=chunk)[13](index=13&type=chunk) - U.S. net sales increased **78% to $22.1 million**, and Europe net sales increased **113% to $15.1 million**[1](index=1&type=chunk)[13](index=13&type=chunk) - Completed a **$6.1 million** sale and partial leaseback of its Decatur, Alabama, warehouse property to strengthen the balance sheet and provide financial flexibility[13](index=13&type=chunk) - Announced closures of its Hull, England warehouse and Veridian manufacturing facility in Quitman, Arkansas, as part of an operational consolidation strategy to enhance efficiency and reduce costs[13](index=13&type=chunk) [Management Commentary & Business Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Business%20Outlook) Management highlighted record Q2'26 net sales driven by Fire Services and strong regional performance, despite global tariff uncertainties. Strategic focus includes expanding sales in key verticals, optimizing inventory, and implementing operational efficiencies. The company updated its FY26 guidance, reflecting continued tariff impacts and order delays [CEO's Strategic Overview](index=1&type=section&id=CEO%27s%20Strategic%20Overview) CEO Jim Jenkins emphasized record Q2'26 net sales, led by Fire Services, and sequential margin improvement. He noted strong performances in North America, Asia, and Europe, offset by softness in Latin America due to tariff and currency issues. Future strategies include expanding Fire Services, optimizing inventory, and enhancing operational efficiencies to achieve higher margins and free cash flow, while capitalizing on long-term industry tailwinds - Record fiscal Q2'26 net sales revenue growth of **36% to $52.5 million**, led by a **113% increase in Fire Services revenue**[5](index=5&type=chunk) - Strong performances in North American Industrial and Fire segments, Asia, and LHD Australia, with rebounds in Europe and Canada, partially offset by softness in Latin America due to tariff uncertainty and currency issues[6](index=6&type=chunk) - Focus on navigating tariff uncertainties, growing top-line revenue in fire services and industrial verticals, and implementing operating and manufacturing efficiencies for higher margins and improved free cash flow[8](index=8&type=chunk) - Initiated targeted actions to optimize inventory levels in U.S. Critical Environment, Jolly, LHD Australia, and Veridian, with further initiatives planned for the second half of FY26[8](index=8&type=chunk) - Expects U.S. and EMEA Fire Services tender cycles to restart in late FY26 and into Q1 FY27, increasing demand and improving performance[9](index=9&type=chunk) [CFO's Financial Review](index=5&type=section&id=CFO%27s%20Financial%20Review) CFO Roger Shannon detailed the 36% revenue growth, driven by U.S. and Canadian Fire Services and Industrial divisions, with organic revenue up 14%. He noted a consolidated gross margin decrease to 35.9% due to tariffs and supply chain costs, but a sequential improvement of 240 basis points. Operating expenses increased due to acquisitions but declined sequentially due to cost reduction initiatives, leading to an 89% increase in Adjusted EBITDA excluding FX. The balance sheet remains strong, supported by $4 million in annual cost reduction initiatives and a property sale - Revenue grew **$14.0 million (36%) YoY**, with organic revenue increasing **14% to $42.0 million**, driven by growth in the U.S., Canada, Europe, and Asia[26](index=26&type=chunk) - Consolidated gross margin decreased to **35.9% YoY** due to increased tariffs and supply chain expenses but improved sequentially by **240 basis points** from 33.5% in Q1'26[27](index=27&type=chunk) - Operating expenses increased by **$2.5 million (15%) YoY** (with **$1.6 million from acquisitions**) but declined sequentially by **$1.0 million (5%) to $19.3 million** due to expense reduction initiatives[28](index=28&type=chunk)[29](index=29&type=chunk) - Adjusted EBITDA excluding FX increased by **$2.4 million (89%) YoY to $5.1 million**, and by **$4.5 million (740%) QoQ**, reaching a margin of **9.6%**[30](index=30&type=chunk) - Balance sheet strengthened by **$4 million in annual cost reduction initiatives**, including facility closures, and a **$6.1 million property sale**[31](index=31&type=chunk) [FY 2026 Guidance Update](index=6&type=section&id=FY%202026%20Guidance%20Update) Lakeland updated its fiscal year 2026 guidance, adjusting revenue expectations to the lower end of the $210-$220 million range and Adjusted EBITDA excluding FX to $20-$24 million. This revision reflects continued uncertainty with the global tariff environment, lower margins, and near-term order delays FY 2026 Guidance Update | Metric | Previous Guidance | Updated Guidance | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | $210M - $220M | Near lower end of $210M - $220M | Continued uncertainty with global tariff environment | | Adjusted EBITDA ex. FX | (Not specified) | $20M - $24M | Lower margins, near-term order delays, tariff uncertainty, higher operating expenses | - The company is actively assessing the financial impact of tariffs and is committed to protecting margins through pricing adjustments, operational efficiencies, and supply chain diversification[33](index=33&type=chunk) [Fiscal Second Quarter 2026 Detailed Financial & Operational Highlights](index=3&type=section&id=Fiscal%20Second%20Quarter%202026%20Detailed%20Financial%20%26%20Operational%20Highlights) Lakeland's Q2'26 financial results show strong top-line growth driven by acquisitions and Fire Services, alongside challenges in gross margin due to tariffs and supply chain costs. Despite an increase in operating expenses from acquisitions, the company achieved positive net income and significantly improved Adjusted EBITDA, while managing cash and debt [Net Sales Performance](index=3&type=section&id=Net%20Sales%20Performance) Net sales for Q2'26 reached a record $52.5 million, a 36% increase YoY, with acquisitions contributing $9.0 million and organic sales growing 14% to $42.0 million. Fire Services sales surged 113% to $25.6 million, becoming 49% of total revenue. Domestic sales increased to 42% of total revenue, while international sales remained dominant at 58% Q2'26 Net Sales Breakdown | Category | Q2'26 Sales | % Change YoY | Contribution to Total Sales | | :--- | :--- | :--- | :--- | | Total Net Sales | $52.5M | 36% | 100% | | Organic Revenue | $42.0M | 14% | 80% | | Acquisition Revenue | $9.0M | N/A | 17% | | Fire Services Product Line | $25.6M | 113% | 49% | | U.S. Net Sales | $22.1M | 78% | 42% | | Europe Net Sales | $15.1M | 113% | 29% | | LATAM Net Sales | $4.3M | (42%) | 8% | | Asia Net Sales | $3.7M | 6% | 7% | [Gross Profit and Margin Analysis](index=3&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit increased 24% to $18.8 million in Q2'26, but the gross margin percentage decreased to 35.9% from 39.6% YoY. This decline was primarily attributed to increased supply chain costs, tariffs, higher inbound freight, and amortization of acquired inventory step-up. Organic gross margin also saw a slight decrease to 38.6% Q2'26 Gross Profit and Margin | Metric | Q2'26 | Q2'25 | % Change YoY | | :--- | :--- | :--- | :--- | | Gross Profit | $18.8M | $15.2M | 24% | | Gross Margin | 35.9% | 39.6% | (370)BPS | | Organic Gross Margin | 38.6% | 41.0% | (240)BPS | - Gross margin percentage decreased due to increased supply chain costs and tariffs, higher inbound freight expenses, and amortization of the step-up in the basis of acquired inventory[16](index=16&type=chunk) [Operating Expenses and Loss](index=4&type=section&id=Operating%20Expenses%20and%20Loss) Operating expenses rose by $2.5 million (15%) to $19.3 million in Q2'26, mainly due to the acquisitions of Veridian and LHD ($1.6 million), higher equity compensation, and depreciation/amortization. These increases were partially offset by reductions in acquisition expenses, restructuring costs, and professional fees. The company reported an operating loss of $4.0 million, exacerbated by a $3.6 million impairment of the Monterrey, Mexico facility lease Q2'26 Operating Expenses and Loss | Metric | Q2'26 | Q2'25 | $ Change YoY | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Operating Expenses | $19.3M | $16.8M | $2.5M | 15% | | Operating Loss | ($4.0M) | ($1.6M) | ($2.4M) | (150%) | | Operating Margins | (7.6%) | (4.1%) | — | (350)BPS | - Operating expenses increased primarily due to **$1.6 million** from Veridian and LHD acquisitions, higher equity compensation, and depreciation/amortization, partially offset by reductions in acquisition, restructuring, and professional fees[17](index=17&type=chunk) - Operating loss was significantly impacted by a **$3.6 million** impairment of the Monterrey, Mexico facility lease[17](index=17&type=chunk) [Net Income and EPS](index=5&type=section&id=Net%20Income%20and%20EPS) Lakeland achieved a net income of $0.8 million, or $0.08 per diluted share, in Q2'26, a significant turnaround from a net loss of ($1.4) million, or ($0.19) per diluted share, in Q2'25 Q2'26 Net Income and EPS | Metric | Q2'26 | Q2'25 | $ Change YoY | % Change YoY | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $0.8M | ($1.4M) | $2.2M | 157% | | Diluted EPS | $0.08 | ($0.19) | $0.27 | 142% | [Adjusted EBITDA Performance](index=3&type=section&id=Adjusted%20EBITDA%20Performance) Adjusted EBITDA excluding FX for Q2'26 increased by $2.4 million (89%) to $5.1 million, driven by strong North American performance and reduced operating expenses, despite lower sales in the higher-margin LATAM region. The Adjusted EBITDA excluding FX margin improved significantly to 9.6%, up 270 basis points YoY and 830 basis points QoQ Q2'26 Adjusted EBITDA excluding FX | Metric | Q2'26 | Q2'25 | Q1'26 | $ Change YoY | % Change YoY | BPS Change YoY | BPS Change QoQ | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA ex. FX | $5.1M | $2.7M | $0.6M | $2.4M | 89% | — | — | | Adjusted EBITDA ex. FX Margin | 9.6% | 6.9% | 1.3% | — | — | 270 | 830 | [Balance Sheet and Cash Flow](index=5&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of July 31, 2025, cash and cash equivalents totaled $17.7 million, with working capital at $106.9 million, both showing slight increases from January 31, 2025, primarily due to inventory increases. The company had $24.9 million outstanding on its revolving credit facility, which was fully repaid post-quarter-end using proceeds from a $6.1 million property sale. Net cash used in operating activities increased to $9.7 million for the six months ended July 31, 2025. A quarterly dividend of $0.03 per share was paid Key Balance Sheet and Cash Flow Metrics (as of July 31, 2025) | Metric | July 31, 2025 | January 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $17.7M | $17.5M | +$0.2M | | Working Capital | $106.9M | $102.6M | +$4.3M | | Revolving Credit Facility Outstanding | $24.9M | N/A | N/A | - Net cash used in operating activities for the six months ended July 31, 2025, was **$9.7 million**, compared to **$4.1 million** in the prior year, driven by increased net loss and non-cash charges[24](index=24&type=chunk)[59](index=59&type=chunk) - The company paid a quarterly dividend of **$0.03 per share** on August 22, 2025[25](index=25&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides a detailed reconciliation of GAAP results to various non-GAAP financial measures, including EBITDA, Adjusted EBITDA, and organic revenue/gross margin. It also explains the rationale behind using these non-GAAP measures and the specific adjustments made to provide a clearer view of the company's core operational performance [Reconciliation Tables](index=8&type=section&id=Reconciliation%20Tables) The reconciliation tables present the adjustments made to GAAP net income (loss) to derive EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding FX, along with the calculation of Adjusted EBITDA margins. It also shows the reconciliation for Adjusted Operating Expenses excluding FX, Organic Revenue, and Organic Gross Margin Reconciliation of GAAP Results to Non-GAAP Results (Three and Six Months Ended July 31, 2025 & 2024) ($000's) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $766 | ($1,376) | ($3,147) | $277 | | **EBITDA** | **$841** | **($281)** | **($2,550)** | **$2,580** | | **Adjusted EBITDA** | **$5,013** | **$1,816** | **$4,836** | **$5,669** | | Adjusted EBITDA Margin | 9.6% | 4.7% | 4.9% | 7.6% | | **Adjusted EBITDA excluding FX** | **$5,056** | **$2,659** | **$5,658** | **$6,519** | | Adjusted EBITDA excluding FX Margin | 9.6% | 6.9% | 4.9% | 7.6% | | Operating Expenses | $19,283 | $16,826 | $39,561 | $30,809 | | **Adjusted Operating Expenses excluding FX** | **$14,574** | **$13,176** | **$30,433** | **$25,685** | | Net Sales | $52,496 | $38,512 | $99,242 | $74,822 | | **Organic Revenue** | **$41,959** | **$36,973** | **$78,743** | **$73,282** | | Gross Profit | $18,818 | $15,235 | $34,462 | $31,420 | | **Organic Gross Profit** | **$16,183** | **$14,612** | **$30,012** | **$30,796** | | Organic Gross Margin | 38.6% | 39.5% | 38.1% | 42.0% | [Explanation of Non-GAAP Measures and Adjustments](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Measures%20and%20Adjustments) Management uses non-GAAP measures like EBITDA, Adjusted EBITDA, and organic revenue/gross margin to provide more meaningful period-to-period comparisons, guide internal decision-making, and offer investors a clearer understanding of core business performance. These measures exclude items not directly related to ongoing core operations, such as interest, taxes, depreciation, amortization, equity compensation, acquisition-related expenses, restructuring costs, and specific litigation/project costs - Non-GAAP measures (EBITDA, Adjusted EBITDA, organic revenue/gross margin) are used to make meaningful period-to-period comparisons, guide management decisions, and provide investors with a better understanding of core business performance[43](index=43&type=chunk) - Exclusions from non-GAAP measures include interest, taxes, depreciation, amortization, equity compensation, acquisition-related expenses, severance and restructuring costs, Mexican operations start-up costs, PFAS litigation expenses, ERP Project costs, and earnout revaluation[42](index=42&type=chunk)[43](index=43&type=chunk) - Organic revenue and organic gross margin exclude the effects of acquisitions completed within the previous fiscal year to understand trends in the legacy business[42](index=42&type=chunk)[43](index=43&type=chunk) [Company Information](index=10&type=section&id=Company%20Information) Lakeland Fire + Safety is a global manufacturer of protective clothing and accessories for industrial and first responder markets, serving diverse industries and governmental agencies across more than 50 countries. The company's press release includes a standard "Safe Harbor" statement regarding forward-looking statements and provides contact information for investor relations [About Lakeland Fire + Safety](index=10&type=section&id=About%20Lakeland%20Fire%20%2B%20Safety) Lakeland Fire + Safety manufactures and sells a comprehensive line of fire services and industrial protective clothing and accessories globally. Its products are distributed to end-users in various industries, including oil, chemical, automotive, healthcare, and governmental agencies, across over 50 countries, with significant presence in China, Europe, Canada, and other emerging markets - Lakeland Fire + Safety manufactures and sells protective clothing and accessories for industrial and first responder markets[49](index=49&type=chunk) - Products are sold globally through in-house sales, customer service, and authorized distributors to diverse industries (e.g., oil, chemical, healthcare) and governmental agencies (e.g., fire, law enforcement, Department of Defense)[49](index=49&type=chunk) - International sales are made into more than **50 foreign countries**, including China, the European Economic Community, Canada, India, and Australia[49](index=49&type=chunk) [Safe Harbor Statement](index=10&type=section&id=Safe%20Harbor%20Statement) The "Safe Harbor" statement clarifies that the press release contains forward-looking statements, including estimates, predictions, and expectations for future financial and operational performance. These statements involve risks, uncertainties, and assumptions, and actual results may differ materially. The company disclaims any obligation to update these statements, except as required by law - The press release contains forward-looking statements regarding future business, financial performance, goals, and strategies, including M&A and tariff mitigation plans[52](index=52&type=chunk) - Forward-looking statements involve risks, uncertainties, and assumptions, and actual results may differ materially from expectations[52](index=52&type=chunk) - The company disclaims any obligation to publicly update or revise these statements, except as required by law[52](index=52&type=chunk) [Contacts](index=11&type=section&id=Contacts) Contact information for Lakeland Fire + Safety's Chief Financial Officer, Roger Shannon, and Investor Relations, Chris Tyson of MZ Group - MZ North America, is provided for inquiries Company Contacts | Role | Name | Contact | | :--- | :--- | :--- | | Chief Financial Officer | Roger Shannon | rdshannon@lakeland.com | | Investor Relations (MZ Group) | Chris Tyson | LAKE@mzgroup.us | [Financial Statements](index=12&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Lakeland Industries, Inc. and its subsidiaries, including the Statements of Operations, Balance Sheets, and Statements of Cash Flows for the reported periods [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Condensed Consolidated Statements of Operations provide a summary of the company's revenues, costs, and profitability for the three and six months ended July 31, 2025, and 2024, detailing net sales, gross profit, operating expenses, and net income (loss) Condensed Consolidated Statements of Operations ($000's) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $52,496 | $38,512 | $99,242 | $74,822 | | Cost of goods sold | 33,678 | 23,277 | 64,780 | 43,403 | | Gross profit | 18,818 | 15,235 | 34,462 | 31,419 | | Operating expenses | 19,283 | 16,826 | 39,561 | 30,809 | | Lease impairments | 3,577 | — | 3,577 | — | | Operating (loss) income | (4,042) | (1,591) | (8,676) | 610 | | Other income, net | 38 | 165 | 144 | 177 | | Interest expense | (445) | (370) | (1,028) | (542) | | (Loss) income before taxes | (4,449) | (1,796) | (9,560) | 245 | | Income tax benefit | (5,215) | (420) | (6,413) | (32) | | Net income (loss) | $766 | ($1,376) | ($3,147) | $277 | | Basic EPS | $0.08 | ($0.19) | ($0.33) | $0.04 | | Diluted EPS | $0.08 | ($0.19) | ($0.33) | $0.04 | [Condensed Consolidated Balance Sheets](index=13&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets present the company's financial position as of July 31, 2025, and January 31, 2025, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets ($000's) | Asset/Liability/Equity | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $17,749 | $17,476 | | Accounts receivable, net | 30,931 | 27,607 | | Inventories, net | 90,202 | 82,739 | | Total current assets | 147,064 | 136,531 | | Property and equipment, net | 13,539 | 13,948 | | Operating leases right-of-use assets | 9,031 | 13,917 | | Goodwill | 15,047 | 16,240 | | Intangible assets, net | 26,007 | 25,503 | | **Total assets** | **$226,304** | **$212,531** | | **LIABILITIES** | | | | Accounts payable | $18,116 | $15,742 | | Total current liabilities | 40,221 | 34,907 | | Loans payable – long term | 28,100 | 16,426 | | **Total liabilities** | **$79,042** | **$65,905** | | **STOCKHOLDERS' EQUITY** | | | | Total stockholders' equity | 147,262 | 146,626 | | **Total liabilities and stockholders' equity** | **$226,304** | **$212,531** | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows detail the cash inflows and outflows from operating, investing, and financing activities for the six months ended July 31, 2025, and 2024, showing the net change in cash and cash equivalents Condensed Consolidated Statements of Cash Flows ($000's) | Cash Flow Activity | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | | Net (loss) income | ($3,147) | $277 | | Net cash (used in) operating activities | (9,660) | (4,053) | | Net cash (used in) investing activities | (2,130) | (24,431) | | Net cash provided by financing activities | 10,941 | 27,048 | | Effect of exchange rate changes on cash | 1,122 | 1,094 | | Net increase (decrease) in cash | 273 | (342) | | Cash and cash equivalents at beginning of period | 17,476 | 25,222 | | Cash and cash equivalents at end of period | $17,749 | $24,880 | [Conference Call Information](index=7&type=section&id=Conference%20Call%20Information) Lakeland Fire + Safety hosted a conference call on September 9, 2025, to discuss its fiscal Q2'26 financial results, with details provided for accessing the live call and subsequent replay [Call Details](index=7&type=section&id=Call%20Details) The conference call for Q2'26 financial results was held on Tuesday, September 9, 2025, at 4:30 p.m. Eastern Time. Participants could access it via dial-in numbers or webcast, with a replay available until December 9, 2025 Q2 2026 Financial Results Conference Call Details | Detail | Information | | :--- | :--- | | Date | Tuesday, September 9, 2025 | | Time | 4:30 p.m. Eastern Time | | U.S. Dial-in | 1-877-407-9208 | | International Dial-in | 1-201-493-6784 | | Conference Code | 13754808 | | Webcast | Q2 2026 Financial Results Conference Call | | Replay Availability | Through December 9, 2025 | - Lakeland President, CEO, and Executive Chairman Jim Jenkins and CFO Roger Shannon hosted the conference call, accompanied by a presentation accessible via the company's investor relations website[38](index=38&type=chunk)
Lakeland Industries (LAKE) Q2 Earnings Top Estimates
ZACKS· 2025-09-09 22:16
Group 1 - Lakeland Industries reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of a loss of $0.04 per share, compared to a loss of $0.19 per share a year ago, representing an earnings surprise of +1,000.00% [1] - The company posted revenues of $52.5 million for the quarter ended July 2025, missing the Zacks Consensus Estimate by 1.51%, and this is an increase from year-ago revenues of $38.51 million [2] - Lakeland Industries shares have declined approximately 41.3% since the beginning of the year, while the S&P 500 has gained 10.4% [3] Group 2 - The company's earnings outlook is crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Lakeland Industries was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $61 million, and for the current fiscal year, it is $0.18 on revenues of $221.9 million [7] Group 3 - The outlook for the Security and Safety Services industry, where Lakeland Industries operates, is currently in the top 13% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]
Lakeland(LAKE) - 2026 Q2 - Earnings Call Transcript
2025-09-09 21:32
Financial Data and Key Metrics Changes - The company achieved record net sales of $52.5 million, representing a 36% year-over-year increase, driven by a 113% increase in fire service products [3][4] - Adjusted EBITDA, excluding FX, was $5.1 million, an increase of $2.4 million or 90% compared to the same period last year [14][18] - Net income was $800,000 or $0.08 per share, compared to a net loss of $1.4 million or $0.19 per share for the same quarter last year [14][24] - Adjusted gross margin percentage decreased to 37.4% from 41.1% year-over-year, primarily due to lower acquired company gross margins and increased material costs [4][20] Business Line Data and Key Metrics Changes - Sales from fire service products increased by $13.6 million year-over-year, with contributions from Meridian and LHD Group [16][22] - Organic sales increased by $5 million or 14% over the prior year [15][19] - Adjusted gross profit for the second quarter was $19.6 million, an increase of 24% compared to the same period last year [16][18] Market Data and Key Metrics Changes - Domestic sales were $22.1 million, representing 42% of total revenues, while international sales were $30.4 million, accounting for 58% of total revenues [15][19] - U.S. revenue increased 78% year-over-year, while European revenue grew 113% [22][23] - Latin American operations experienced a $3.6 million decrease in sales due to delayed purchase decisions from tariff uncertainty [23] Company Strategy and Development Direction - The company aims to continue robust growth in fire services and industrial segments, focusing on acquisition synergies and increasing market share [3][4] - Strategic initiatives include streamlining operations and improving profitability through facility closures and cost reduction measures [7][8] - The company is actively pursuing M&A opportunities within the fire suit rental, decontamination, and services business [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff uncertainties and emphasized a focus on operational efficiency and customer relationships [9][10] - The company adjusted its fiscal year 2026 outlook for adjusted EBITDA to the range of $20 to $24 million, expecting revenue near the lower end of $210 to $220 million [29][30] - Management anticipates steady expansion in EBITDA margins over the next three to five years, driven by improved efficiencies and disciplined pricing [30] Other Important Information - The company reported an increase in institutional holdings by 447,000 shares, or 6.2%, to 7,622,035 shares [8] - The recent sale of the Decatur facility for $6.1 million is expected to strengthen the balance sheet and support the M&A pipeline [7][24] Q&A Session Summary Question: Full-year guidance and back half implied numbers - Management indicated that the current EBITDA run rate may not be sustainable due to challenges in Latin America but expects growth in the U.S. and Europe [34][36] Question: Expectations for full-year organic growth - Management anticipates mid-teens organic growth, depending on the timing of fire service RFPs and large orders [38][39] Question: Update on M&A targets - Management is in discussions for several imminent deals, focusing on service-related acquisitions [40][41] Question: Gross profit margin and tariff impacts - Management noted that tariffs impacted margins by about 1.2 points and expects improvements in gross margin in the coming quarters [46][48] Question: Inventory levels and comfort - Management acknowledged high inventory levels and plans to optimize them over the next six months [49][52] Question: Changes in buying in Latin America - Management is starting to see movement in Latin America, with expectations for a substantial catch-up in the second half of the year [54][56] Question: Normalization of client perspective on tariffs - Management feels more comfortable navigating the uncertain environment and is optimistic about future operations [60][62]