Lakeland Industries Inc (LAKE) Q4 2025 Earnings Call Highlights: Revenue Surge Amid Strategic ...

In This Article:

  • Revenue: Q4 revenue increased by $15.4 million or 49.3% to $46.6 million; full-year revenue rose by $42.5 million or 34.1% to $167.2 million.

  • Gross Margin: Q4 gross margin increased to 40.1% from 35.9% in the previous year; full-year gross margin remained at 41.1%.

  • Net Loss: Q4 net loss was $18.4 million or negative $2.42 per diluted share; full-year net loss was $18.1 million or negative $2.43 per diluted share.

  • Operating Expenses: Q4 operating expenses increased by $4.3 million or 29.7% to $18.8 million; full-year operating expenses rose by $22.2 million or 49.1% to $67.4 million.

  • Adjusted EBITDA: Q4 adjusted EBITDA, excluding FX, was $6.1 million; full-year adjusted EBITDA was $17.4 million, a 10% increase from the previous year.

  • Cash and Cash Equivalents: $17.5 million as of January 31, 2025, down from $25.2 million the previous year.

  • Inventory: Increased by $14.2 million to $82.7 million as of January 31, 2025.

  • Fire Services Revenue: Increased by $36.5 million or 137.7% year-over-year.

  • International Sales: Accounted for 64% of total revenues for the fiscal year 2025.

Release Date: April 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Lakeland Industries Inc (NASDAQ:LAKE) reported a significant revenue growth of 49.3% in the fourth quarter of fiscal 2025 compared to the same period in fiscal 2024.

  • The company completed four strategic acquisitions over the past 1.5 years, enhancing its competitive advantage in the global fire turnout gear and industrial PPE markets.

  • Lakeland Industries Inc (NASDAQ:LAKE) successfully closed an oversubscribed $46 million public equity offering, which improved its balance sheet and is expected to save approximately $2.5 million annually in cash interest.

  • The company has implemented a company-wide Lean Six Sigma project to enhance operational efficiency and is modernizing its ERP systems to consolidate its IT control environment.

  • Lakeland Industries Inc (NASDAQ:LAKE) has a strong global presence, operating from 18 locations in 14 countries, with sales representatives in 23 countries outside the US and product sales in more than 50 countries.

Negative Points

  • Lakeland Industries Inc (NASDAQ:LAKE) reported a net loss of $18.4 million for the fourth quarter of fiscal 2025, primarily due to a $10.5 million goodwill impairment and a $7.6 million write-off of its investment in Bodytrak.

  • Operating expenses increased significantly by 29.7% in the fourth quarter of fiscal 2025 due to inorganic growth, acquisition expenses, and increased SG&A operating expenses.

  • The company faced challenges with tariff pressures and broader economic uncertainties, which could impact its operations and profitability.

  • Lakeland Industries Inc (NASDAQ:LAKE) experienced a decrease in cash and cash equivalents from $25.2 million in January 2024 to $17.5 million in January 2025, reflecting the impact of its acquisition strategy.

  • The company is dealing with a backlog in orders, particularly with a large boot order from Jolly, which was delayed and impacted its financial performance.