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.
