Lakeland Industries, Inc. (LAKE) on Q1 2024 Results - Earnings Call Transcript
Operator: Good day, and welcome to the Lakeland Industries Fiscal 2024 First Quarter Financial Results Conference Call. All lines have been placed on a listen-only mode. And the floor will be opened for your questions and comments following the presentation. During today's call, we may make statements relating to our goals and objectives for future operations, financial and business trends, business prospects and management's expectations for future performance that constitute forward-looking statements under federal securities laws. Any such forward-looking statements reflect management's expectations based upon currently available information and are not guarantees of future performance and involve certain risks and uncertainties that are more fully described in our SEC filings. Our actual results, performance or achievements may differ materially from those expressed in or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call. During today's call, we will discuss financial measures derived from our financial statements that are not determined in accordance with U.S. GAAP, including EBITDA and adjusted EBITDA. A reconciliation of each of the non-GAAP measures discussed on this call to the most directly comparable GAAP measure is presented in our earnings release. At this time, I would like to introduce you to your host for this call, Lakeland Industries' Chief Executive Officer, Charlie Roberson. Mr. Roberson, the floor is yours. Charlie Roberson: Thank you, Jenny. Good morning and thank you all for joining. I'd like to begin by pointing out that in addition to the press release, yesterday, we also posted a Q1 investor deck on the Investors Section of our website, and while we will not speak directly to it on this call, we do invite you to access it and follow along. We're pleased with our fiscal first quarter results as Lakeland delivered net sales of $28.7 million, up 5.2% year-over-year, while our net sales for the quarter included $2 million from our acquisition of Eagle Technical Products this past December, Lakeland also delivered organic growth in targeted geographic markets and product lines. Of note, our fire and flame resistant, arc resistant performance product category saw a significant year-over-year growth of 103% and 55% respectively. In terms of profitability, our first quarter gross margin of 43.4% was above our long-term target of 40%, and as Roger will cover in more detail, benefited from multiple dedicated actions from our team members. In regard to our geographic markets, North American industrial demand continues to hold strong, and is performing in line with our expectations. Oil and gas turnaround activity, which was significantly curtailed during COVID, is returning at a measured pace over a prolonged period, partially due to ongoing labor availability constraints. We anticipate labor constraints continuing throughout the remainder of the year and are expecting an extended strong fall turnaround season. Going forward, we will continue to monitor global oil market developments such as the recent production cuts announced by OPEC+, and I would characterize our outlook for the year as cautiously optimistic given the shifting macroeconomic backdrop. While our North American markets are performing in line with our targets. Our Asian markets have been weaker than expected, driven almost entirely by China. China's departure from a zero tolerance COVID-19 policy in late December significantly curtailed government demand for testing related PPE, including disposable [Indiscernible]. Industrial economic activity has been very slow to recover as foreign customers seek to reduce dependence on China and their supply chains, and as China experiences a subsequent outbreak of the XBB variant of the COVID-19 virus. In addition to depressed industrial activity, China is experiencing post-pandemic excess inventory in its distribution channels. We anticipated an excess inventory condition would likely occur in China, but believed it would not be as severe as in the U.S. or Europe due to significantly shorter lead times within China. As a result of these factors, we anticipate China's economic recovery will remain slower than our initial projections throughout the course of the year. Europe continues to outperform our expectations this year, but admittedly, this is because our forecast hit it into the fiscal year was quite cautious given some of the macro, geopolitical and energy security or supply related issues that overhang this region. So we do not -- we do expect Europe to continue to progress this year at a pace ahead of our original expectations even though industrial activity in general remains muted. Turning to other important markets globally, India and Mexico are tracking slightly behind our projections for the first quarter, although we believe activity will ultimately improve and come in line with our projections for the year. Latin America is performing ahead of forecast right now and is expected to maintain this performance for the remainder of the fiscal year. In terms of our focus on high value products, we're seeing year-over-year success with our fire and flame-resistant, arc-resistant products in North America. Our sales team has been successful in adding new distributors, expanding geographic reach and have begun displacing our competitors as key or primary suppliers with a number of existing and new distributors, resulting in 29% organic revenue growth for fire products and 55% organic growth within the FR/AR products line. Lakeland is gaining traction in these markets, and we believe that our focus on these product lines is yielding success. Shifting gears to Eagle. Our integration efforts are tracking firmly on schedule and we are continuing to accelerate synergy capture between organizations. This is evident in our fire business as Eagle is successfully promoting sales of NFPA certified gear into their existing sales channels. Our legacy team is also in the process of incorporating Eagle CE hoods into our NFPA markets and promoting Eagle CE turnout gear into our international markets. Our efforts to integrate Eagle Products into Lakeland's geographic markets are initially focused on Latin America and Mexico and will be followed by India and Southeast Asia. To this end, Lakeland's leadership team and Eagle personnel will be meeting with our Latin America -- American and Mexico sales teams to train them on Eagle products later this month. Eagle will have a chance to learn firsthand about the South American firefighting market. On the expansion front, we're pleased with the progress we are making at our new Monterrey, Mexico facility, which we expect to be complete by the fiscal third quarter of this year. As we have previously communicated, this manufacturing plant will greatly benefit our efforts to gain market share in higher value strategic end markets, most notably fire, flame-resistant, arc-resistant, high performance for electrical utilities and chemical by providing short run capability and additional capacity to service our growing high value product sales. As we look to the balance of our current fiscal year, we anticipate little change in our existing business environment. We believe that China will remain weak with little in the way of economic recovery. India and Mexico were slightly behind projections as of the end of Q1, but are recoverable and we believe they will meet revenue projections for the year. North America is currently running at forecast sales pace and is expected to continue to do so through the remainder of the year. Europe and Latin America are both running ahead of their projections through the first quarter and do not show any signs of weakening. In the aggregate, we believe based on current market information and the strength that we are seeing in fire and industrial FR markets, that we will attain our goal of mid to high-single-digit growth this year. Overall we remain very positive on the position we are generating for ourselves within the market and we expect to deliver continued revenue growth in our core markets, as well as profitability levels in line with the company's three-year to five-year targets. We will accomplish this through geographic targeting of specific products, turnout gear, flame-resistant, arc-resistant, high performance and chemical suits, and through pricing deviations and disposables to select end user accounts where we believe we can leverage the business to capture strategic sales currently held by our competitors. I'll now pass the call to Roger to provide an overview of our financial results. Roger? Roger Shannon: Thanks, Charlie, and good morning everyone. Lakeland delivered sales $28.7 million in the first quarter. Domestic sales were $12.3 million or 43% of total revenues and international sales were $16.4 million or 57% of total revenues. This compares with domestic sales of $11.2 million or 41% of the total, and international sales of $16.1 million or 59% of the total in first quarter of fiscal 2023. In terms of product mix for the quarter, disposables continued to decrease as a percentage of Lakeland sales and represented 43% of total revenues, compared to 53% in the year ago quarter. This again reflects the efforts we've made to shift our product mix toward higher value, higher margin and less commoditized non-disposable products as we've discussed in prior calls. Additionally as we noted in our earnings press release issued yesterday afternoon, we saw strong growth within our fire product category with sales up 103% year-over-year. From a geographic standpoint, Lakeland saw strong sales growth in our U.S, Canada and European markets. However, this growth was partially offset by soft Asian sales particularly in China and India. Gross profit as a percentage of net sales was 43.4% for fiscal 2024 first quarter, as compared to 40.5% a year ago. As Charlie already highlighted, the strong improvement in our gross margin performance was driven by deliberate sales focus on higher value products, as well as improved finished goods, material costs, and lower manufacturing expenses. Compared to the prior quarter, our gross margin percentage increased 6 percentage points, up from 37.4%, due to improved product mix. The absence of excess freight expense write-offs that we had in Q4, profit in Q1 ending inventory and a positive Q1 inventory reserve adjustment. Lakeland reported operating profit of $1.9 million in Q1 2024, as compared to $1.4 million in the first quarter last year. As a result, operating margins were 6.8% in the first quarter, up from 5.3% for the first quarter of last year. Our operating profit benefited from the improved gross margins and higher revenue as previously discussed, partially offset by an increase of $900,000 in operating expenses in Q1 of 2024. The increase in operating expenses is attributable to increases in severance expenses and currency fluctuations. Travel and trade show expenses and higher professional fees. Currency fluctuations, primarily related to the Argentinian peso, which totaled approximately $300,000 negatively affected operating profit. Lakeland delivered net income of $1.3 million or $0.18 per basic and diluted share during the quarter. This compares to $1.1 million or $0.15 per basic share and $0.14 per diluted share in the prior period. EBITDA for the first quarter of fiscal 2024 was $2.4 million, compared to $1.9 million for the first quarter of fiscal 2023. Adjusted EBITDA was $2.8 million in Q1 2024, compared to $2.3 million in Q1 of ‘23. Moving to the balance sheet. Lakeland ended the quarter with cash and cash equivalents of approximately $26 million, an increase of $1.4 million, compared to our fiscal year 2023 year-end cash balance of $24.6 million, due primarily to cash provided by operating activities of $3.7 million for the three months ended April 30, 2023. The company continued to have no debt at the end of the quarter and has up to $25 million available from bank credit facilities. Capital expenditures for the three months ended April 30, 2023 were $700,000 and were related to capital equipment for the company's new manufacturing facility in Monterrey and Mexico that is scheduled to open in the second-half of the current year, as Charlie previously mentioned. As a reminder, we anticipate fiscal 2024 capital expenditures to be approximately $3 billion, as we complete the new manufacturing facility in Monterey, Mexico and replace existing equipment in the normal course of operation. We expect to fund the capital expenditures from our cash flow from operations. The company purchased $300,000 of common stock under its repurchase program during the quarter, leaving approximately $5.1 million remaining under the current authorization. Lakeland was also pleased to pay its initial quarterly dividend $0.03 per share to stockholders during the quarter. Our inventories declined slightly quarter-over-quarter from $58.2 million at January 31, 2023 to $57.9 million at the end of Q1 ‘24. Raw materials inventory increased by approximately $400,000, while finished goods inventories decreased by approximately $500,000. Our increase in raw material inventory is driven by increases in our higher value strategic products. Moving forward, we remain committed to accelerating the reduction of our finished goods inventory this year as previously communicated and will continue to explore various price deviations on additional product styles. With that overview, I'd like to now turn the call over to the operator to open for questions-and-answers. Operator: Thank you very much. At this time we are opening the floor for questions. [Operator Instructions] Thank you. Your first question is coming from Alex Fuhrman of Craig-Hallum Capital Group. Alex, your line is live. Alex Fuhrman: Hey, guys. Thanks very much for taking my question and congratulations on a really nice quarter. We'd love to talk about gross margin and what could expect to see for the rest of this year and heading into next year, it seems like you, you know, very quickly hit your longer term profitability target. Was there a mix shift involved in getting there so quickly? We'd love to just hear your broad thoughts on what we can expect to see over the next few quarters and years? Roger Shannon: Hey, good morning, Alex. This is Roger. No, thank you for the question and thank you for the comments. We work obviously pleased with the quarter. We did see a very nice increase over Q4, as well as year-over-year. The bulk of that increase was driven by product mix, obviously, with a slight increase in revenue driving gross profit, but the mix driving gross margin as we talked about with the focus on the higher value strategic product line with Inspire and FR/AR. The other thing, as you probably remember, compared to last quarter, particularly we had about 200 basis point decrease or write-off in excess freight cost in Q4, and we did a comprehensive inventory costing analysis, cost roll in Q4, can clean that up from some of the higher freight costs during the COVID period. The other thing that I mentioned in my prepared remarks, we did have a slight adjustment into positive from profit and ending inventory in an inventory reserve, of course, we'll have those every quarter. They could go either way, but this quarter they were a positive. So longer term, course over the course of the remainder of the year, which we certainly are not guiding to count on those the quarterly adjustments in any inventory like we just said, but that we are on track for that 40% plus gross margin that we've indicated. Charlie Roberson: Hi, Alex, it's Charlie. Also like to point out the investor deck that we did for Q1 actually does contain a bridge showing the margin improvement in quarter-to-quarter. Alex Fuhrman: Okay. That's really helpful. Thank you, guys. And then you mentioned in your remarks and in release last night that you're seeing a lot of good response to the higher value products that you've been focusing more on. Obviously, that sounds like that's having a positive impact on gross margin as well. Can you give us a sense of how much of your business today is what you would call those higher value products? And where you see that going over the next few years? Charlie Roberson: Yes. Alex, we're already seeing a shift to that, it's -- we look at that in more general terms within our product categories, we have sales even of the same product that may, in one case, may be strategic or higher value where another is not. We tried -- we're trying to get that message across in our press -- in the press release, we talked about how we define high value, it’s an end user definition, and it really goes to the amount of effort and consultation that they put into the purchasing decision. Now having said that, disposables with the exception of cleanroom is we just generally consider entirely commodity or not high value. And we've seen a year-over-year shift. Roger Shannon: Full-year. Charlie Roberson: A full-year shift in our disposables, a decline of 6% that has moved largely into the fire and the FR/AR wovens categories, okay? So as we move forward in future years, I expect to see that trend continue, maybe not at a 6% a year pace. But as we keep going, I think that eventually, we will see our strategic items grow to where they're a 60%-plus, maybe even as high as 65% of our total revenue. Roger Shannon: And Alex, I would again encourage you and the listeners to kind of refer to a couple of slides we have in the Q1 investor presentation that we posted, you will see. If you look at it, it's probably referred to as you look at the full-year 2023 or the year that we just finished revenue about 49% of that was from disposables for Q1 of 2024 that was 43%. So as Charlie mentioned, it's a 6 point decrease, compared to the full-year of last year. The chemical remains, kind of, consistent at around 20% and where we did see the pickup was in the FR/AR and particularly the fire. So Eagle, of course, contributed, having the first full quarter performance or results from Eagle, but also as we mentioned in our prepared remarks, we're seeing organic growth in fire. Yes. Charlie Roberson: Yes. And Alex, the other part of that question is in the higher value products is where we have value for product development. We've got things that are in the middle there that represent an opportunity to grow those markets, as well as to take market share from our competitors. Alex Fuhrman: Great. That's really helpful guys. Thank you very much. Operator: Thank you very much. Well, we don't appear to have any further questions in the queue. I'm now going to hand back over to the management team for any closing remarks. Charlie Roberson: Thank you, Jenny. Thank you all for joining us on today's call. We look forward to building on our momentum, and sharing our successes within this year. Thank you and have a good day. Operator: Thank you, everybody. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.
Lakeland Industries, Inc. (NASDAQ:LAKE) Reports Fiscal Q1 2026 Financial Results
- Lakeland Industries, Inc. (NASDAQ:LAKE) achieved record net sales of $46.7 million, a 29% increase year-over-year, driven by a significant rise in Fire Services products.
- Despite facing challenges in Latin America and Canada, the company remains optimistic about future growth in these regions as tariff uncertainties diminish.
- Lakeland expects fiscal 2026 revenue to range between $210 million and $220 million, with adjusted EBITDA expected to be at the lower end of $24 million to $29 million.
Lakeland Industries, Inc. (NASDAQ:LAKE) is a prominent player in the protective clothing and apparel industry. The company recently reported a notable increase in its fiscal first-quarter 2026 financial results, achieving record net sales of $46.7 million, a 29% rise from the previous year. This growth was largely fueled by a 100% increase in Fire Services products, which now account for 45% of total revenue.
U.S. net sales climbed by 42% to $22.5 million, while European sales saw a remarkable 102% surge to $12.1 million. However, Lakeland faced challenges in Latin America and Canada due to shipment timing and tariff-related delays, impacting margins. Despite these hurdles, the company remains optimistic about future growth in these regions as tariff uncertainties diminish.
Lakeland's President and CEO, Jim Jenkins, highlighted the company's focus on overcoming tariff challenges and expanding revenue in fire services and industrial verticals. The company has completed four acquisitions, enhancing its product lines and global market reach. Financially, Lakeland reported a gross profit of $15.6 million, a decrease from the previous year, attributed to geographic revenue mix and higher manufacturing costs.
Operating expenses increased due to acquisitions and other costs, resulting in an operating loss of $4.6 million. The net loss for the quarter was $3.9 million, compared to a net income of $1.7 million in the prior year. Despite these setbacks, Lakeland expects fiscal 2026 revenue to range between $210 million and $220 million, with adjusted EBITDA excluding foreign exchange expected to be at the lower end of $24 million to $29 million.
Lake Street maintained its "Buy" grade for Lakeland, although the action is currently on hold, as highlighted by Lake Street. The stock price was $15.07 at the time of this announcement, with a revised price target lowered from $30 to $26. Lakeland's CFO, Roger Shannon, noted that the company's acquisition strategy and operational improvements are expected to drive accelerated growth over the next few years, focusing on expanding EBITDA margins.
Lakeland Industries, Inc. (NASDAQ: LAKE) Overview
- Lakeland Industries' stock target price remains stable at $28, indicating a consistent outlook from analysts.
- The acquisition of Veridian is expected to contribute an additional $21 million in annual revenue, aligning with Lakeland's expansion strategy.
- Despite a significant revenue increase, Lakeland's earnings per share fell short of expectations, reporting at $0.01 compared to the Zacks Consensus Estimate of $0.40.
Lakeland Industries, Inc. (NASDAQ: LAKE) is a global leader in the manufacturing and sale of industrial protective clothing and accessories. Their diverse product line includes disposable protective clothing, chemical protective suits, firefighting apparel, and high visibility clothing. These products serve a wide range of industries such as oil, chemical, automotive, and construction, as well as governmental agencies.
The stock target price for Lakeland has remained stable, with the average price target holding at $28 over the last month and quarter, up slightly from $27 a year ago. This stability indicates a consistent outlook from analysts regarding the company's performance and growth potential. D.A. Davidson has set a price target of $28, reflecting their expectations for the stock's future performance.
Lakeland's recent acquisition of Veridian, a U.S.-based company known for firefighter protective apparel, is a strategic move to expand its global fire services portfolio. This acquisition, valued at $25 million and financed through a revolving credit facility with Bank of America, is expected to contribute an additional $21 million in annual revenue. This aligns with Lakeland's strategy to enhance its offerings in the protective clothing sector.
Despite a significant 44.5% increase in fiscal third-quarter 2025 revenues, driven by strong international operations, Lakeland's earnings fell short of expectations. The company reported earnings per share of $0.01, below the Zacks Consensus Estimate of $0.40, and a decline from $0.34 per share in the same quarter last year. This earnings miss has not altered the price target set by D.A. Davidson, which remains at $28.
Lakeland Industries has experienced a notable stock price increase of approximately 70% over the past year, rising from $15.22 to $26.10, before settling at $22.64. This growth is attributed to revenue growth and operational efficiency. However, the company faces challenges with profitability, leading to a cautious "hold" rating from analysts. Despite these challenges, management remains optimistic about meeting fiscal year 2025 projections, which could potentially lead to an upgrade in the company's rating.
Lakeland Industries, Inc. (NASDAQ: LAKE) Overview
- Lakeland Industries' stock target price remains stable at $28, indicating a consistent outlook from analysts.
- The acquisition of Veridian is expected to contribute an additional $21 million in annual revenue, aligning with Lakeland's expansion strategy.
- Despite a significant revenue increase, Lakeland's earnings per share fell short of expectations, reporting at $0.01 compared to the Zacks Consensus Estimate of $0.40.
Lakeland Industries, Inc. (NASDAQ: LAKE) is a global leader in the manufacturing and sale of industrial protective clothing and accessories. Their diverse product line includes disposable protective clothing, chemical protective suits, firefighting apparel, and high visibility clothing. These products serve a wide range of industries such as oil, chemical, automotive, and construction, as well as governmental agencies.
The stock target price for Lakeland has remained stable, with the average price target holding at $28 over the last month and quarter, up slightly from $27 a year ago. This stability indicates a consistent outlook from analysts regarding the company's performance and growth potential. D.A. Davidson has set a price target of $28, reflecting their expectations for the stock's future performance.
Lakeland's recent acquisition of Veridian, a U.S.-based company known for firefighter protective apparel, is a strategic move to expand its global fire services portfolio. This acquisition, valued at $25 million and financed through a revolving credit facility with Bank of America, is expected to contribute an additional $21 million in annual revenue. This aligns with Lakeland's strategy to enhance its offerings in the protective clothing sector.
Despite a significant 44.5% increase in fiscal third-quarter 2025 revenues, driven by strong international operations, Lakeland's earnings fell short of expectations. The company reported earnings per share of $0.01, below the Zacks Consensus Estimate of $0.40, and a decline from $0.34 per share in the same quarter last year. This earnings miss has not altered the price target set by D.A. Davidson, which remains at $28.
Lakeland Industries has experienced a notable stock price increase of approximately 70% over the past year, rising from $15.22 to $26.10, before settling at $22.64. This growth is attributed to revenue growth and operational efficiency. However, the company faces challenges with profitability, leading to a cautious "hold" rating from analysts. Despite these challenges, management remains optimistic about meeting fiscal year 2025 projections, which could potentially lead to an upgrade in the company's rating.
Lakeland Industries, Inc. (NASDAQ:LAKE) Raises $46 Million in Public Offering and Sees Insider Confidence
- Lakeland Industries, Inc. (NASDAQ:LAKE) successfully completed a public offering, raising approximately $46 million.
- CFO Shannon Roger D's purchase of 1,000 shares signals insider confidence in the company's future.
- Financial metrics present a mixed picture, with a strong liquidity position but challenges in profitability and cash flow generation.
Lakeland Industries, Inc. (NASDAQ:LAKE), a leading provider of protective clothing and safety gear, trading under the name Lakeland Fire + Safety, recently announced the completion of a public offering of common stock. The company raised approximately $46 million in gross proceeds through the offering of 2,093,000 shares at $22.00 each, with significant participation from institutional investors and company insiders.
On January 24, 2025, Shannon Roger D, the CFO of LAKE, demonstrated his belief in the company's potential by purchasing 1,000 shares at $23.23 per share, thereby increasing his total holdings to 36,839 shares. This insider purchase is a strong indicator of confidence in the company's future prospects, despite its current financial challenges. The stock offering, managed by Roth Capital Partners, Lake Street Capital Markets, LLC, and Maxim Group LLC, further indicates robust investor interest.
LAKE's financial metrics reveal a mixed picture. The price-to-sales ratio of 1.11 suggests that investors are paying $1.11 for every dollar of sales, while the enterprise value to sales ratio of 1.31 accounts for the company's debt and cash on hand. The debt-to-equity ratio of 0.37 indicates a low level of debt, and a current ratio of 4.23 signals strong liquidity. Additionally, the enterprise value to operating cash flow ratio of -21.29 underscores difficulties in generating positive cash flow from operations, as highlighted by the company's financial data.
Lakeland Industries, Inc. (NASDAQ:LAKE) Raises $46 Million in Public Offering and Sees Insider Confidence
- Lakeland Industries, Inc. (NASDAQ:LAKE) successfully completed a public offering, raising approximately $46 million.
- CFO Shannon Roger D's purchase of 1,000 shares signals insider confidence in the company's future.
- Financial metrics present a mixed picture, with a strong liquidity position but challenges in profitability and cash flow generation.
Lakeland Industries, Inc. (NASDAQ:LAKE), a leading provider of protective clothing and safety gear, trading under the name Lakeland Fire + Safety, recently announced the completion of a public offering of common stock. The company raised approximately $46 million in gross proceeds through the offering of 2,093,000 shares at $22.00 each, with significant participation from institutional investors and company insiders.
On January 24, 2025, Shannon Roger D, the CFO of LAKE, demonstrated his belief in the company's potential by purchasing 1,000 shares at $23.23 per share, thereby increasing his total holdings to 36,839 shares. This insider purchase is a strong indicator of confidence in the company's future prospects, despite its current financial challenges. The stock offering, managed by Roth Capital Partners, Lake Street Capital Markets, LLC, and Maxim Group LLC, further indicates robust investor interest.
LAKE's financial metrics reveal a mixed picture. The price-to-sales ratio of 1.11 suggests that investors are paying $1.11 for every dollar of sales, while the enterprise value to sales ratio of 1.31 accounts for the company's debt and cash on hand. The debt-to-equity ratio of 0.37 indicates a low level of debt, and a current ratio of 4.23 signals strong liquidity. Additionally, the enterprise value to operating cash flow ratio of -21.29 underscores difficulties in generating positive cash flow from operations, as highlighted by the company's financial data.
Lakeland Industries, Inc. (NASDAQ:LAKE) Financial Overview and Market Position
- Earnings Per Share (EPS) of $0.38 met the estimated EPS, showcasing Lakeland's ability to meet financial expectations.
- The stock price has seen a significant increase of approximately 70% over the past year, indicating strong market confidence and potential for further appreciation.
- Lakeland exhibits a strong financial health with a low debt-to-equity ratio of 0.24 and a current ratio of 4.24, suggesting good liquidity and conservative debt usage.
Lakeland Industries, Inc. (NASDAQ:LAKE) is a key player in the global market for protective clothing and apparel, serving industries such as healthcare and emergency response. The company operates in North America, China, India, and Brazil, providing safety garments essential for industrial markets. Lakeland's competitors include other safety apparel manufacturers, but its focus on operational efficiency and revenue growth sets it apart.
On December 5, 2024, Lakeland reported earnings per share (EPS) of $0.38, meeting the estimated EPS of $0.38. The company also achieved actual revenue of $44.3 million, perfectly aligning with the forecasted revenue. This consistency in meeting financial expectations reflects Lakeland's stable performance and effective management strategies.
Lakeland's stock has seen a significant price increase of approximately 70% over the past year, rising from $15.22 to $26.10, before settling at $22.64. This growth is largely due to the company's revenue growth and operational efficiency. The investment thesis for Lakeland is based on its addressable market and continued revenue growth, indicating potential for further stock appreciation.
The company's financial metrics provide additional insights into its performance. Lakeland has a price-to-earnings (P/E) ratio of 88.94, suggesting high market expectations for future earnings. Its price-to-sales ratio of 1.24 and enterprise value to sales ratio of 1.38 indicate a reasonable market valuation relative to its sales. The enterprise value to operating cash flow ratio of 64.16 highlights the company's valuation in relation to its cash flow from operations.
Lakeland's financial health is further supported by a low debt-to-equity ratio of 0.24, indicating conservative debt usage. The current ratio of 4.24 suggests strong liquidity, with the company well-positioned to cover its short-term liabilities. These financial metrics, combined with the company's operational efficiency, underscore Lakeland's potential for continued growth and stability in the market.
Lakeland Industries, Inc. (NASDAQ:LAKE) Financial Overview and Market Position
- Earnings Per Share (EPS) of $0.38 met the estimated EPS, showcasing Lakeland's ability to meet financial expectations.
- The stock price has seen a significant increase of approximately 70% over the past year, indicating strong market confidence and potential for further appreciation.
- Lakeland exhibits a strong financial health with a low debt-to-equity ratio of 0.24 and a current ratio of 4.24, suggesting good liquidity and conservative debt usage.
Lakeland Industries, Inc. (NASDAQ:LAKE) is a key player in the global market for protective clothing and apparel, serving industries such as healthcare and emergency response. The company operates in North America, China, India, and Brazil, providing safety garments essential for industrial markets. Lakeland's competitors include other safety apparel manufacturers, but its focus on operational efficiency and revenue growth sets it apart.
On December 5, 2024, Lakeland reported earnings per share (EPS) of $0.38, meeting the estimated EPS of $0.38. The company also achieved actual revenue of $44.3 million, perfectly aligning with the forecasted revenue. This consistency in meeting financial expectations reflects Lakeland's stable performance and effective management strategies.
Lakeland's stock has seen a significant price increase of approximately 70% over the past year, rising from $15.22 to $26.10, before settling at $22.64. This growth is largely due to the company's revenue growth and operational efficiency. The investment thesis for Lakeland is based on its addressable market and continued revenue growth, indicating potential for further stock appreciation.
The company's financial metrics provide additional insights into its performance. Lakeland has a price-to-earnings (P/E) ratio of 88.94, suggesting high market expectations for future earnings. Its price-to-sales ratio of 1.24 and enterprise value to sales ratio of 1.38 indicate a reasonable market valuation relative to its sales. The enterprise value to operating cash flow ratio of 64.16 highlights the company's valuation in relation to its cash flow from operations.
Lakeland's financial health is further supported by a low debt-to-equity ratio of 0.24, indicating conservative debt usage. The current ratio of 4.24 suggests strong liquidity, with the company well-positioned to cover its short-term liabilities. These financial metrics, combined with the company's operational efficiency, underscore Lakeland's potential for continued growth and stability in the market.
