Business
Lakeland Industries, Inc. Reports Fiscal 2025 Second Quarter Financial Results
Net sales of $38.5 million and gross margin of 39.6%Continued strong growth in high-value, strategic product lines, led by a 34% increase in FireRebranding
About this update from Lakeland Industries, Inc.
[{"type":"text","content":"Net sales of $38.5 million and gross margin of 39.6%Continued strong growth in high-value, strategic product lines, led by a 34% increase in FireRebranding and Launch of Lakeland Fire + Safety HUNTSVILLE, AL / ACCESSWIRE / September 4, 2024 / Lakeland Industries, Inc. (NASDAQ:LAKE) (the \"Company\" or \"Lakeland\"), a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders on the federal, state and local levels, today announced financial results for its fiscal 2025 second quarter ended July 31, 2024.Fiscal 2025 Second Quarter Financial Results HighlightsNet sales of $38.5 million, up $5.4 million, or 16.5%, year-over-yearOrganic revenue(1) excluding LHD, Jolly, and Pacific Helmets acquisitions, of $32.2 million, a decrease of $0.9 million, or 2.8%, year-over-yearFire services business, a key strategic growth focus for the Company, grew over 34% versus the same period last yearGross margin of 39.6% and organic gross margin of 43.4%, compared to a gross margin of 42.9% in the prior year periodNet loss of ($1.4 million) or ($0.19) per basic common share in Q2-FY25 versus net income of $2.5 million or $0.33 per basic common share last yearAdjusted earnings before interest, taxes, depreciation, amortization and excluding FX (Adjusted EBITDA excluding FX)(2) of $2.7 million in Q2-FY25, compared to $4.7 million in Q2-FY24LHD, Jolly and Pacific Helmets revenue of $1.5 million, $2.9 million and $1.9 million, respectively(1)Organic revenue and organic gross margin are total revenue and total gross margin, each excluding the effects of recent acquisitions, which management uses to assess the growth of its legacy business.(2)Adjusted EBITDA and Adjusted EBITDA excluding FX are non-GAAP financial measures. Reconciliations are provided in the tables of this press release.Management Comments\"Lakeland delivered second-quarter results below our expectations, but we believe the shortfall was due to shipment timing, and we remain confident in our full-year projections. A substantial amount of the organic revenue shortfall is related to the transition of large North American channel partner accounts to LineDrive, our new industrial market representative. LineDrive continues to build pipeline opportunities, and we believe these sales will accelerate in the second half of the year. Additionally, b...