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1. Company Snapshot

1.a. Company Description

Lakeland Industries, Inc.manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide.It offers limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and firefighting and heat protective apparel to protect against fire.


The company also provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts.In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries.The company sells its products to a network of approximately 1,600 safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives.


It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments.The company was incorporated in 1982 and is headquartered in Huntsville, Alabama.

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1.b. Last Insights on LAKE

Lakeland Industries' recent performance was negatively impacted by its Q3 FY2026 results, which missed expectations, and management's withdrawal of guidance. The company's revenue growth was solely driven by acquisitions, while organic sales declined. Profitability also collapsed, with EPS swinging to -$1.64 from $0.01 year-over-year. Investigations into potential securities claims have been launched, alleging that Lakeland may have issued misleading business information. Additionally, a securities fraud lawsuit has been filed against the company and its executives.

1.c. Company Highlights

2. Lakeland Fire and Safety's Q3 2026 Earnings: A Challenging Quarter

Lakeland Fire and Safety reported a 4% year-over-year increase in net sales to $47.6 million, driven by a 31% increase in fire services products. However, the company's adjusted EBITDA, excluding FX, was $200,000, a decrease of $4.5 million or 95% compared to the same period last year. The company's adjusted EPS came out at -$0.7, missing estimates of $0.17. The gross margin decreased to 29.7% from 40.6% for the third quarter of fiscal 2025, primarily due to lower sales, higher product costs, and tariffs.

Publication Date: Dec -20

📋 Highlights
  • Revenue Growth Despite EBITDA Decline: Q3 FY2026 net sales rose 4% to $47.6M YoY, but adjusted EBITDA (excluding FX) fell 95% to $200K due to lower sales, higher costs, and tariffs.
  • Regional Revenue Softness: North America revenue dropped 3% to $15M (U.S. industrial decline), while Latin America fell $0.8M, impacted by political uncertainty and delayed purchases.
  • Fire Services Product Surge: Fire services revenue grew 31% YoY ($6M increase), driven by Veridian ($3.4M) and organic growth ($3M), despite overall margin contraction to 29.7%.
  • Tender Pipeline and Cost Cuts: $178M global tender opportunities (including $38M high-probability) and $1.3M Q4 cost reductions aim to offset FX headwinds and revenue shortfalls.
  • Liquidity and Inventory Actions: Cash reserves at $17M with $37.1M long-term debt; $87.9M inventory down from $90.2M, with targeted reductions to improve working capital.

Revenue Performance

Revenue for the third quarter of fiscal 2026 grew $1.8 million year-over-year to $47.6 million. The company's fire services product line increased by $6 million year-over-year, driven by $3.4 million in sales from Veridian as well as organic fire services growth of $3 million. U.S. revenue decreased 3% to $15 million due to declines in the industrial business due to tariff uncertainty. European revenue increased 6% to $15.2 million, driven by good sales opportunities in the region.

Operational Challenges

The company faced challenges due to tariff uncertainty, inflation, and rising supply chain costs. Revenue softness was visible across the portfolio in the U.S., Canada, Latin America, and parts of EMEA. The company has taken steps to address the challenges, including initiating a series of targeted actions to optimize inventory levels and focusing on the upcoming tender cycle. Lakeland has approximately $178 million of global tender opportunities, including $38 million over $100,000 in value with high probabilities of success.

Valuation and Outlook

Given the current challenges, Lakeland's valuation metrics appear to be under pressure. The company's P/E Ratio is -2.06, and the EV/EBITDA is -4.4, indicating that the market is pricing in significant challenges. Analysts estimate next year's revenue growth at 17.6%. The company expects top-line revenue growth in the high single-digit range across global operations over the next 3 quarters and 10% to 12% adjusted EBITDA margins with incremental growth in EBITDA margins over the next 3 quarters.

Management's Response

The company has realigned its finance team with the appointment of Calven Swinea as interim CFO effective January 1. Lakeland will provide regular updates on key operational milestones, inventory reduction progress, margin improvements, and ERP integration timelines. As James Jenkins mentioned, "The company is implementing an additional $1.3 million of cost reductions for the fourth quarter," indicating a proactive approach to addressing the challenges.

3. NewsRoom

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ROSEN, A GLOBALLY RESPECTED LAW FIRM, Encourages Lakeland Industries, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – LAKE

01:52

Source: globenewswire.com

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ROSEN, RECOGNIZED INVESTOR COUNSEL, Encourages Lakeland Industries, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - LAKE

Mar -04

Source: newsfilecorp.com

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Lakeland Industries, Inc. (LAKE) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit

Mar -04

Source: prnewswire.com

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Lakeland Industries, Inc. Sued for Securities Law Violations - Investors Should Contact Levi & Korsinsky for More Information - LAKE

Mar -04

Source: prnewswire.com

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Lakeland Fire + Safety's Arizona PPE Provides Support to the Phoenix Fire Department for the 10th Consecutive Year

Mar -04

Source: globenewswire.com

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ROSEN, A LEADING NATIONAL FIRM, Encourages Lakeland Industries, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - LAKE

Mar -03

Source: newsfilecorp.com

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Pomerantz Law Firm Announces the Filing of a Class Action Against Lakeland Industries, Inc.and Certain Officers – LAKE

Mar -03

Source: globenewswire.com

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Deadline Alert: Lakeland Industries, Inc. (LAKE) Shareholders Who Lost Money Urged To Contact Glancy Prongay Wolke & Rotter LLP About Securities Fraud Lawsuit

Mar -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.63%)

6. Segments

Disposables

Expected Growth: 5.5%

Lakeland Industries' Disposables segment growth of 5.5% is driven by increasing demand for personal protective equipment (PPE) in the healthcare and industrial sectors, coupled with the company's strategic expansion into emerging markets and product innovation, such as the introduction of new disposable garments and accessories.

Fire

Expected Growth: 5.8%

Lakeland Industries' 5.8% growth driven by increasing demand for protective gear in manufacturing and oil & gas industries, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, quality, and customer service has led to market share gains and higher sales.

Chemical

Expected Growth: 5.2%

Lakeland Industries, Inc.'s 5.2% growth in the Chemical segment is driven by increasing demand for personal protective equipment (PPE) and industrial cleaning products, coupled with strategic acquisitions and expansion into new markets. Additionally, the company's focus on innovation and product development has led to the introduction of new, high-margin products, contributing to revenue growth.

Wovens

Expected Growth: 5.6%

Lakeland Industries' Wovens segment growth of 5.6% is driven by increasing demand for protective clothing and textiles in the industrial and healthcare sectors, coupled with strategic acquisitions and expansion into new markets. Additionally, the company's focus on innovative products and cost-saving initiatives has contributed to the segment's growth.

High Performance Wear

Expected Growth: 6.2%

Lakeland Industries' High Performance Wear segment growth of 6.2% is driven by increasing demand for protective clothing in industries such as oil and gas, chemical, and manufacturing. Additionally, the company's focus on innovative products, strategic acquisitions, and expansion into new markets have contributed to its high performance.

High Visibility

Expected Growth: 6.5%

High Visibility from Lakeland Industries, Inc. is driven by increasing demand for protective clothing and gear, particularly in the industrial and healthcare sectors. The company's strategic acquisitions, expanded product offerings, and strong online presence have also contributed to its 6.5% growth rate.

Gloves

Expected Growth: 5.9%

Lakeland Industries, Inc.'s 5.9% growth in gloves segment is driven by increasing demand for personal protective equipment (PPE) in industries such as manufacturing, construction, and healthcare. Additionally, growing awareness of workplace safety and government regulations mandating PPE use contribute to the growth.

7. Detailed Products

Chemical Protective Clothing

Lakeland Industries offers a wide range of chemical protective clothing, including suits, gloves, and boots, designed to protect workers from hazardous chemicals and substances.

Flame Resistant (FR) Clothing

Lakeland's FR clothing is designed to protect workers from flash fires and electrical arc flashes, providing a safe and reliable solution for workers in high-risk industries.

High-Visibility Clothing

Lakeland's high-visibility clothing is designed to increase worker visibility in low-light environments, reducing the risk of accidents and injuries.

Disposable Protective Clothing

Lakeland's disposable protective clothing is designed for single-use applications, providing a convenient and cost-effective solution for workers in a variety of industries.

Heat and Flame Resistant (HFR) Materials

Lakeland's HFR materials are designed to provide thermal protection in high-heat environments, protecting workers from burns and injuries.

8. Lakeland Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lakeland Industries, Inc. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Lakeland Industries, Inc. is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Lakeland Industries, Inc. is high due to the concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Lakeland Industries, Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Lakeland Industries, Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.52%
Debt Cost 3.95%
Equity Weight 97.48%
Equity Cost 6.39%
WACC 6.33%
Leverage 2.59%

11. Quality Control: Lakeland Industries, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Superior Group of Companies

A-Score: 4.8/10

Value: 5.2

Growth: 5.1

Quality: 3.6

Yield: 9.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
G-III Apparel

A-Score: 4.5/10

Value: 6.6

Growth: 5.3

Quality: 5.4

Yield: 0.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Oxford Industries

A-Score: 4.4/10

Value: 6.4

Growth: 5.3

Quality: 3.2

Yield: 8.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Culp

A-Score: 4.3/10

Value: 10.0

Growth: 1.2

Quality: 4.8

Yield: 1.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Lakeland Industries

A-Score: 3.6/10

Value: 9.8

Growth: 2.1

Quality: 4.0

Yield: 2.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Hanesbrands

A-Score: 3.6/10

Value: 7.0

Growth: 0.9

Quality: 4.8

Yield: 2.0

Momentum: 3.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.98$

Current Price

8.98$

Potential

-0.00%

Expected Cash-Flows